Media Release

ASFA: The Budget must address COVID-19’s impacts on employment by expanding FEG entitlements

Published 25 August, 2020

Published 25 August, 2020

25 August 2020

ASFA: The Budget must address COVID-19’s impacts on employment by expanding FEG

In its supplementary Pre-Budget submission lodged with the government the Association of Superannuation Funds of Australia (ASFA) called for an expansion in the coverage of the Fair Entitlements Guarantee scheme (FEG) to cover unpaid employer superannuation contributions.

While the provision of JobKeeper payments to businesses that have experienced a downturn in revenue have kept many businesses solvent, once the JobKeeper program ceases there is likely to be a substantial increase in the number of insolvencies.

ASFA CEO Dr Martin Fahy, said: “The terrible combination of drained superannuation accounts through early release and dried up super contributions from employers can have a devastating impact on retirement savings.

“Superannuation contributions made by employers are an employee entitlement, just like wages. In the case of insolvencies or bankruptcies the government should step in and make sure that employees receive their due entitlements.”

With nation-wide reductions in employment disproportionately impacting on the young, ASFA maintains that the increase in the superannuation guarantee (SG) is now more important than ever and should continue as legislated.

To help all Australians achieve the best possible retirement outcomes and to support the strength of the Australian economy, ASFA proposes additional measures for Government to consider:

committing to the legislated increase in the Super Guarantee (SG) to 12 per cent
abolishing the $450 a month earnings threshold for the payment of the Superannuation Guarantee (SG)
a six-step plan to cut red tape and improve productivity in the superannuation sector.

“We look forward to discussing each of these initiatives with Government,” concluded Dr Fahy.

For further information, please contact:
Jacqui Maddock, 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.

Acknowledgement of Country

We want to respectfully acknowledge the Traditional Owners and Custodians of these lands, seas, and waters throughout Australia. We pay our respects to Elders both past and present. We acknowledge the history, the resilience and the continual contributions of Aboriginal and Torres Strait Islander peoples of their Country.

ABN 29 002 786 290

Daniel Mulino MP

Assistant Treasurer and Minister for Financial Services

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

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.