A government plan to introduce a higher tax rate for superannuation balances over $3 million adds to uncertainty around investing for retirement.

The introduction of a cap on superannuation balances would only be trying to prevent events that have happened and will never be repeated.

If an individual chooses to have their SMSF make the payment for a Division 293 tax assessment, proper procedures must be followed to avoid penalty.

The peak SMSF industry body is hopeful the Albanese government will stick to its pre-election commitments when it hands the budget down next week.