Media Release

Removal of tax on earnings will help deliver certainty: ASFA

Published 6 November, 2013

Published 6 November, 2013

6 November 2013

Removal of tax on earnings will help deliver certainty: ASFA

The Association of Superannuation Funds of Australia (ASFA) today welcomed the Abbott Government’s announcement that it will not be proceeding with the tax on superannuation earnings over $100,000.

ASFA CEO Ms Pauline Vamos says uncertainties regarding the way the tax would be calculated and applied were concerning for many people, particularly retirees and those approaching retirement.

“When the measure was first announced, the Australian community expressed concern that the tax may be applied to retirees with relatively low account balances, particularly given that returns can fluctuate quite dramatically at times.

“Not proceeding with this policy, alongside the Government’s commitment not to make any detrimental, unexpected changes during this parliamentary term, will deliver certainty for people planning for their retirement,” Ms Vamos said.

However, Ms Vamos says there is still a conversation to be had regarding the appropriate tax policies to apply to retirees with very high account balances amounting to millions of dollars.

“The average Australian may think it unfair that all income in accounts with very high balances be tax-free throughout retirement,” Ms Vamos said.

Additionally, she said that there needs to be further discussion around the taxation of super contributions for low-income earners, given the Government’s stated intention to remove the Low Income Super Contribution (LISC).

“The LISC is good public policy as it offsets the 15 per cent tax applied to superannuation for those on very low incomes, who would otherwise receive the income tax-free. Given that the Mineral Resources Rent Tax (MRRT) is set to be repealed, it’s important we look at alternative ways to fund this initiative in the budget process,” Ms Vamos concluded.

For further information, please contact:
Lisa Chikarovski, Media Manager, 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 whose aim is to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.

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.

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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.