Media Release

ASFA calls for Budget measures to address women’s retirement savings gap and bolster long term sustainability of retirement income policy

12 October 2022

ASFA calls for Budget measures to address women’s retirement savings gap and bolster long term sustainability of retirement income policy

In its Pre-Budget Submission for the October 2022 Federal Budget, the Association of Superannuation Funds of Australia (ASFA) has called for measures which will ensure the maturing system will work better for women and support the long-term sustainability of the system.

“While the aggregates of the system are strong, two key challenges remain – closing the gender gap and addressing the long-term sustainability of a retirement system characterised by increasing capacity for self-reliance in retirement, but a growing ageing population. ASFA’s Pre-Budget Submission seeks to address both areas,” said ASFA CEO, Dr Martin Fahy.

The introduction of superannuation contributions on paid parental leave and/or a $5,000 Super Baby Bonus, payable directly into people’s superannuation following the birth or adoption of a child, would go some way towards delivering better retirement outcomes for women.

The submission also proposes that the Low Income Superannuation Tax Offset (LISTO) should be made more generous by aligning the upper threshold for its receipt with recent changes to personal income tax rates. Women are around twice as likely as men to qualify for the LISTO.

“While the superannuation system is well-designed and working for the majority of Australians, the latest Australian Taxation Office figures show a significant gap of 23.1 per cent in superannuation balances between men and women as they approach retirement,” said Dr Fahy.

“A consumer survey undertaken for ASFA earlier this year found more than 80 per cent of respondents believed the Government should take measures to boost the super balances of women who take time out of the workforce to have children.”

A $5,000 superannuation baby bonus paid into the person’s superannuation account would be equivalent to the amount that a person would receive from Super Guarantee (SG) contributions on a $60,000 wage for one year.

“Rising inflation, broken work patterns, COVID-19, and the early release of superannuation have all eroded the retirement savings of low-income earners and women in particular,” said Dr Fahy.

The long-term sustainability of our superannuation public policy is also important. Accordingly, ASFA proposes to fund the proposed measures for women and low-income earners by reducing the superannuation tax concessions of high-income earners and from investment earnings of individuals with high account balances.

“With the aggregates of the system largely assured, this is the appropriate time to look to the long term equity and sustainability of the superannuation system,” said Dr Fahy.

The Submission also points to the need for more regular payment of compulsory superannuation payments and the need for better arrangements to be in place when superannuation contributions go unpaid due to the insolvency of an employer.


For further information, please contact:
ASFA Media team, 0451 949 300.

About ASFA
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. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.

   

Derek Thompson

Best Selling Author, Podcast Host of 'Plain English'

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Few speakers can match Derek Thompson‘s ability to synthesize mega-trends in society, labor, economics, technology, and politics. Put another way: Derek trawls the data sets and does the forecasting and deep reporting necessary to help us better understand how we live, how we vote, how we spend, and how we work.

In his paradigm-shifting #1 New York Times bestseller, Abundance (co-written with Ezra Klein), this award-winning journalist reveals how our policies and culture have pushed us into a world of scarcity (not enough housing, workers, or progress)—and offers a radical new path towards a world where housing is affordable, energy is plentiful, and innovation flourishes across industries.

He shares a compelling vision of a future where we have more than enough for everybody, and a practical, actionable roadmap for how to get there. It starts with taking more risks, building more expansively, and recognizing that we all have the power to create a world of abundance. “Everything’s utopian until it’s reality,” he says.

Carmen Beverley-Smith

Executive Director - Superannuation, Life & Private Health Insurance, APRA

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Carmen joined APRA in March 2023 and holds the role of Executive Director, Life and Private Health Insurance and Superannuation.  

She has had an esteemed career in financial services, spanning over 25 years. She has held diverse leadership roles at Westpac and Commonwealth Bank of Australia, including across risk, transformation and change, product and portfolio development, and sales and service. 

Prior to joining APRA, she held the role of General Manager, Risk Transformation Delivery Integration at Westpac. This involved leading the group-wide implementation of a suite of solutions to uplift risk management capability and develop data, analytics and reporting. 

Carmen leads with a values-driven approach and a particular interest in developing and mentoring talent. 

She holds a Bachelor of Commerce and Accounting, is a certified Chartered Accountant and a Graduate of the Australian Institute of Company Directors. 

Amy C. Edmondson

Novartis Professor of Leadership and Management, Harvard Business School

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Amy C. Edmondson is the Novartis Professor of Leadership and Management at the Harvard Business School, a chair established to support the study of human interactions that lead to the creation of successful enterprises that contribute to the betterment of society.

Edmondson has been recognized by the biannual Thinkers50 global ranking of management thinkers since 2011, and most recently was ranked #1 in 2021 and 2023; she also received that organization’s Breakthrough Idea Award in 2019, and Talent Award in 2017.  She studies teaming, psychological safety, and organisational learning, and her articles have been published in numerous academic and management outlets, including Administrative Science Quarterly, Academy of Management Journal, Harvard Business Review and California Management Review. Her 2019 book, The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation and Growth (Wiley), has been translated into 15 languages. Her prior books – Teaming: How organizations learn, innovate and compete in the knowledge economy (Jossey-Bass, 2012), Teaming to Innovate (Jossey-Bass, 2013) and Extreme Teaming (Emerald, 2017) – explore teamwork in dynamic organisational environments. In Building the future: Big teaming for audacious innovation (Berrett-Koehler, 2016), she examines the challenges and opportunities of teaming across industries to build smart cities. 

Edmondson’s latest book, Right Kind of Wrong (Atria), builds on her prior work on psychological safety and teaming to provide a framework for thinking about, discussing, and practicing the science of failing well. First published in the US and the UK in September, 2023, the book is due to be translated into 24 additional languages, and was selected for the Financial Times and Schroders Best Business Book of the Year award.

Before her academic career, she was Director of Research at Pecos River Learning Centers, where she worked on transformational change in large companies. In the early 1980s, she worked as Chief Engineer for architect/inventor Buckminster Fuller, and her book A Fuller Explanation: The Synergetic Geometry of R. Buckminster Fuller (Birkauser Boston, 1987) clarifies Fuller’s mathematical contributions for a non-technical audience. Edmondson received her PhD in organisational behavior, AM in psychology, and AB in engineering and design from Harvard University.

 

Daniel Mulino MP

Assistant Treasurer and Minister for Financial Services

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Born in Brindisi, Italy, Daniel was a young child when he moved with his family to Australia. He grew up in Canberra and completed his first degrees – arts and law – at the ANU. He then completed a Master of Economics (University of Sydney) and a PhD in economics from Yale.

He lectured at Monash University, was an economic adviser in the Gillard government and was a Victorian MP from 2014 to 2018. As Parliamentary Secretary to the Treasurer of Victoria, Daniel helped deliver major infrastructure projects and developed innovative financing structures for community projects.

In 2018 he was preselected for the new federal seat of Fraser and became its first MP at the 2019 election, re-elected in 2022 and 2025. From 2022 to 2025, Daniel was chair of the House of Representatives’ Standing Economics Committee in which he chaired inquiries; economic dynamism, competition and business formation and insurers’ responses to 2022 major floods claims.

In 2025, he became the Assistant Treasurer and Minister for Financial Services.

In August 2022, Daniel published ‘Safety Net: The Future of Welfare in Australia’, which aims to explore the ways in which an insurance approach can improve the effectiveness of government service delivery.