Media Release

Changes to tax treatment of superannuation must consider objectives of the system: ASFA

3 February 2016

Changes to tax treatment of superannuation must consider objectives of the system: ASFA

The Association of Superannuation Funds of Australia (ASFA) has urged the government to maintain a broad and holistic view of the superannuation and retirement incomes system when considering changes to tax concessions.

“Newspoll findings released today in The Australian show the extent to which Australians are engaged in conversation about the future of superannuation,” said Pauline Vamos, CEO, ASFA.

“This discussion in turn has reiterated the need for the government and stakeholders to agree the objectives of the superannuation system. Such discussion should be had in a holistic manner rather than isolating specific tax levers.

“There are certainly opportunities to look at the level of tax in the superannuation system and it is vital to consider three objectives when doing so: equity, sustainability and the delivery of adequate incomes throughout retirement. ASFA has already made suggestions in this regard and will constructively engage in any public debate on options canvassed by the government in its tax consultation process. Reducing the threshold for a higher rate of tax on contributions to $180,000 in income a year could well be an option that the government is considering.

“However, any changes need to be carefully considered in the context of the overall retirement system. People’s incomes change over their lifetime—a level of income today may not necessarily be an accurate indicator of retirement savings—and we need to ensure that people have the ability to save for a comfortable retirement. The impact of any tax change on future expenditure on the Age Pension also needs to be taken into account.

“ASFA’s preference is to encourage people to save as much as possible for their retirement up to a certain account balance threshold and then reduce tax concessions after that.”

ASFA has previously suggested that the ceiling whereat the superannuation system should stop providing taxpayer support for accumulating retirement savings is an account balance of $2.5 million. ASFA has also consistently advocated for the retention of the Low Income Superannuation Contribution (LISC) scheme to improve the equity of the system.

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.