At last week’s Momentum Media Election 2025 event, chief executive Mary Delahunty said the handwringing over taxing unrealised gains is being blown out of proportion.

“ASFA believes that the tax on earnings on assets above $3 million is a worthwhile pursuit, the bill and the shape that it's currently in, obviously has some hairs on it.”

“I'm not as concerned about the taxation of unrealised capital gains as some other commentators are. I think we're all fairly familiar with land tax, which is also a taxation system that is based on unrealised capital gains.

“Whether or not that means you need to pay the tax at the time, or whether or not there should be some reform done to that bill that would see a debt held over. Those are the sorts of issues I think an incoming government might want to tackle if they want to bring more equity to the tax incentives in superannuation.”

In its official policy priorities 2025 document, ASFA said the super sector’s 2025 policy agenda calls for “targeted reforms that protect and build upon the strengths of Australia’s superannuation system”, including maintaining preservation settings, improving equity outcomes, and ensuring the system remains a pillar of national economic stability.

“Superannuation must continue to deliver strong retirement outcomes for individuals while also playing a critical role in funding infrastructure, housing, and business investment,” it said.

Among its other recommendations is to introduce greater flexibility for retirees to make contributions to their pension accounts.

“This reform would allow retirees to better manage their retirement savings, optimise their income streams, and improve financial security throughout retirement,” it said.

It recommended preventing early withdrawals for property purchases and said the incoming government must ensure that super is not used as a short-term measure in response to the housing shortage.

“Evidence shows that allowing withdrawals for home deposits would drive up property prices while reducing future retirement savings.”

“The proposal would offer limited benefit. Of the 5.3 million eligible first home buyers, over 5 million would not be able to make full use of the policy. Those who would are predominantly higher-income earners who would already have the capacity to purchase property.

“Early release schemes can also significantly erode long-term savings, lead to financial insecurity in retirement and also increase future reliance on the Age Pension – placing greater pressure on government budgets over future decades.”

It also called for enhancing access to affordable financial advice by enacting reforms that improve the availability and affordability of financial advice.

“These reforms should be implemented without delay to provide greater clarity, confidence, and security for superannuation members navigating their retirement planning,” it said.

“An incoming government should establish an accredited education pathway equivalent to AQF5 to support a new class of advisers to build long-term capability in the system and increase access to advice for Australians.”