ASFA welcomes new Treasury team

The Association of Superannuation Funds of Australia (ASFA) has welcomed the appointment of Treasurer The Hon Scott Morrison MP, Assistant Treasurer and Minister for Small Business The Hon Kelly O’Dwyer MP and Assistant Minister to the Treasurer Mr Alex Hawke MP, to the Treasury portfolio.

ASFA also recognises the substantial contribution that outgoing Treasurer The Hon Joe Hockey MP and Assistant Treasurer The Hon Josh Frydenberg MP made during their tenure. In particular, Mr Frydenberg played a crucial role during the Financial System Inquiry (FSI) and Tax White Paper processes.

“Currently, the superannuation system is operating well and broadly meeting its objectives as defined by the Financial System Inquiry – to provide income in retirement to substitute or supplement the Age Pension. However, there is still progress to be made through the implementation of the Financial System Inquiry recommendations and finalisation of the tax white paper process,” said ASFA CEO, Ms Pauline Vamos.

ASFA has identified two key areas of reform that can be accomplished through the tax white paper process. In order to make the system more equitable, ASFA has proposed limiting tax concessions to those with superannuation balances of over $2.5 million, while simultaneously exploring ways to make the system more fair for those with broken work patterns.

ASFA has also called upon the government to legislate the objectives and goals of the superannuation system with a focus on three key areas: ensuring adequate delivery of income stream in retirement; defining the superannuation system’s purpose and understanding what ‘success’ looks like, and improving the system to better align with the principles and goals that underpin it.

“I thank Mr Hockey and Mr Frydenberg for their contribution, and look forward to working with Mr Morrison and Ms O’Dwyer in the coming months to continuously improve the superannuation system and ensure that all Australians are financially confident about their retirement.”

ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political national organisation, which aims to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.