The Turnbull government has released the first tranche of draft legislation for its superannuation reforms aimed at making the system fairer, more flexible and more sustainable.
But it does not include the contentious $500,000 lifetime cap on after-tax super contributions that has received flak from its own backbench.
Treasurer Scott Morrison said it was never going to be in the first tranche of reform, but welcomed the feedback he has received from colleagues on the issue.
"Consultations with colleagues has been in very good faith ... it has been a good opportunity to talk about some of the issues and concerns that have been raised," Mr Morrison said at a press conference in Canberra today.
The draft legislation contains a number of measures, including enshrining into law the objective of superannuation - being to provide income in retirement that substitutes or supplements the age pension.
This has guided the government's reform package.
It also provides opportunity for older Australians to make contributions without being penalised and encourages low-income spouses to make contributions.
It introduces the low-income superannuation tax offset, which will ensure individuals do not pay more tax on their super contributions than on their take-home pay.
Submissions to the draft legislation are due by September 16.
Shadow assistant treasurer Andrew Leigh was surprised Mr Morrison was not including the contentious $500,000 cap proposal, which Labor believes is retrospective.
"Today we have got the extraordinary spectacle of Scott Morrison releasing draft legislation on his retrospective superannuation reforms, without actually the retrospective bit," Dr Leigh said.
Labor's superannuation spokeswoman Katy Gallagher reiterated the opposition supported a $500,000 cap that was prospective not retrospective.
She complained the government had failed to engage with Labor on the issue.
"I would be reaching out to the other major party to seek agreement," she said.
"Superannuation ... doesn't deserve to become a political plaything."