20 April 2012
Equity in superannuation: important background
In light of today’s calls for changes to superannuation tax concessions, ASFA would like to alert journalists to a recent analysis which shows the distribution of tax concessions is largely equitable.
Misconceptions that higher income earners are the greatest beneficiaries of tax concessions in super are based on old data (2005-2006). Since then, tighter contribution caps have been introduced and the level of assistance flowing to high-income earners has reduced considerably.
Recently legislated Government measures (including SG at 12 per cent and the low-income superannuation contribution payment) further increase the proportion of assistance flowing to low and middle-income earners.
The table below shows the current and impending government assistance for superannuation contributions by income range based on the year 2009-2010.
| Taxable income range ($) |
Marginal income tax rate |
Current value of tax concession and co-contribution (a) $m |
% of current total tax concession and co-contribution |
Value of impending total tax concession and government contributions (a) $m |
% of impending total tax concession and government contributions |
| 0 – 6,000 | 0% | 192 | 1.5 | 210 | 1.4 |
| 6,001 – 37,000 | 15% | 1.068 | 8.3 | 1,640 | 11.0 |
| 37,001 – 80,000 | 30% | 4,662 | 36.4 | 5,732 | 38.3 |
| 80,001 – 180,000 | 38% | 4,968 | 38.8 | 5,465 | 36.6 |
| 180,001+ | 47% | 1,905 | 14.9 | 1,905 | 12.7 |
| All employees | 12,797 | 100 | 14,953 | 100 |
The full paper, The equity of government assistance for retirement income in Australia, can be found on our website.
ASFA’s media release today responding to the Government’s consideration of reducing tax concessions in superannuation is also available online.
For media inquiries, please contact:
Pauline Vamos, CEO, 0433 169 342
Rebecca Glenn, GM Marketing and Communications, 0416 170 439
Megan McDougall, Media and Communications Coordinator, (02) 8079 0849
About ASFA – the voice of super
The Association of Superannuation Funds of Australia is the peak industry body representing the superannuation and retirement industry. ASFA is the only organisation that represents all types of superannuation funds (retail, industry, corporate and public sector) and associated service providers. ASFA members manage or advise on the bulk of the $1.3 trillion in superannuation assets as at September 2011. Its members represent over 90 per cent of the approximately 12 million Australians with superannuation.
