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Peak body lays out policy priorities ahead of election
The Association of Superannuation Funds of Australia (ASFA) has called for the incoming government to prioritise “certainty and stability” when it comes to super policy.
In a statement on Wednesday, ASFA said reforms would need to be specific and targeted to support both the long-term dignity of Australians in retirement and the broader sustainability of the nation’s economic framework.
“Our superannuation system is working well for the 17 million Australians with superannuation accounts by delivering strong retirement outcomes: it builds our prosperity, and delivers greater financial security for retirees, stable capital for investment, and economic resilience for the country,” ASFA CEO Mary Delahunty said.
“This federal election ASFA is calling for targeted and co-ordinated reforms that protect and build upon the strengths of Australia’s superannuation system, including maintaining the elements that make our system work: preservation settings, improving equity outcomes, and ensuring the system remains a pillar of national economic stability.”
The industry body’s key priorities include strengthening fairness in retirement by expanding the low income superannuation tax offset, with ASFA calling for increases to both the upper income threshold and the maximum payable amount to prevent tax disincentives for low-income earners.
Moreover, the association has demanded the next government implement payday super “without delay”.
“This reform will strengthen compliance, reduce unpaid superannuation, and ensure workers receive their entitlements in full, helping to maximise their retirement savings over time,” it said.
In its statement on Wednesday, ASFA also called on the government to collaborate more closely with the broader sector to combat financial crime, scams, and fraud, ensuring that superannuation is preserved for its intended purpose – funding retirement.
Further, it pointed to the need for quality advice as it relates to improving retirement outcomes and called for progress on the passage of Tranche 2 of the Delivering Better Financial Outcomes (DBFO) reforms without delay.
“Ultimately, reforms to advice are essential to ensure the superannuation system works not only to accumulate savings but also to support Australians in confidently turning those savings into secure, confident and dignified retirements,” ASFA said.
This, the advocacy group said, includes establishing an accredited education pathway to support the new class of advisers, enshrining collective charging mechanisms where appropriate, and implementing strong consumer protections.
Other key priorities that ASFA has set out for the next government include:
- Reinforcing consumer choice on the superannuation system by enhancing investment choices and informed decision making in a transparent way.
- Harnessing the strength of superannuation to support investment in national priorities, including housing supply, clean energy, and infrastructure.
- Upholding a stable and efficient superannuation system that is working for millions of Australians through a predictable and balanced policy framework.
Speaking at Momentum Media’s Election 2025 Breakfast last week, the CEO said that “regardless of its political colour and makeup”, the next government must have a “steady hand”.
What’s needed, Delahunty said, is a measure of “political courage” and a clear-eyed view that while some proposals may offer short-term appeal, they must be assessed against the potential risk of undermining the long-term retirement outcomes of millions of Australians.
Having previously warned that using super for home ownership is “not an effective policy” and risks undermining long-term retirement outcomes, she reiterated ASFA’s concerns, saying the Coalition’s proposed super-for-housing scheme runs counter to the legislated objective of superannuation.
“This generation, we believe, should not be forced to choose between a home today and a secure retirement tomorrow. And preservation of super must be protected,” Delahunty said.
“What’s decided in this term of government will affect retirement outcomes for decades to come as we look ahead to the upcoming election … this system is built on long-term planning. So we need to make sure the policy environment resists the temptation to be short-term and reactive.”
AUTHOR
Jessica Penny
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