** CHECK AGAINST DELIVERY **
Mary Delahunty, ASFA CEO
Good morning everyone, and thank you for having me.
I’d like to begin by acknowledging the traditional owners of this land, the land of Gadigal people or the Eora nation. And pay my respect to elders past and present.
It’s a pleasure to be here with so many of you who work at the sharp edge of decisions that have such a profound impact on the retirement of outcomes of so many Australians. ASFA has been operating since 1962 as the peak body of superannuation, the voice of super.
Our members include funds across retail, industry, corporate and state based and the service providers to those funds – administrators, insurers, fund managers and others. And it’s from this broad base we develop our policy, advocacy and our practice guidelines – and of course our topic of today – election priorities.
Now, election years are noisy – full of slogans, pledges, and a rotating cast of polling data. But underneath all of that, there are enduring policy questions that demand clear answers. And superannuation is one of them.
Super has come of age and is now a cornerstone of the economy
It’s a mature, central force in Australia’s economic and social landscape.
Superannuation now contributes approximately 2.5% of GDP each year. That’s more than the entire agriculture sector. It supports over 100,000 full-time equivalent jobs, across funds, custodians, administrators, investment managers, and service providers.
It is a long-term pool of capital that underwrites our needs as a nation in infrastructure, housing, energy transition, and productivity. And the sophistication of our sector attracts international capital from like-minded long term patient investors – the largest of the international pension funds.
This incredible system is still growing. Total assets has reached $4.2 trillion, or 145% of GDP. It’s projected the system will grow to $11.2 trillion by 2043 in future dollars, or about $7 trillion in today’s terms and exceed 180% of GDP. This means that $2.4billion is released from the system every week for those in the drawdown phase and paid into people’s pockets. Around $124.4b per year.
That scale doesn’t just benefit individual retirees. It delivers savings to the federal budget – to each and every single taxpayer. As super balances rise, Age Pension reliance falls. Australia is one of the few OECD nations where pension spending is actually projected to decline from 2.5% to 2.1% of GDP by 2060. This is bucking the international trend. The portion of pension spend as a percentage of GDP in other OECD countries is growing from around 9% to a projected 10% by 2060. So we are starting at a lower base and we travelling in a different direction.
And when markets turn, super helps steady the ship. During the GFC and again through COVID, super funds stayed invested and indeed found new markets, provided credit where others couldn’t. The super funds were a rare constant when other capital withdrew. That counter-cyclical role matters more than ever now, as we navigate rising geopolitical tensions and global volatility.
If we want to build a resilient economy, super must remain stable, protected, and well-regulated.
Cyber incident
Before I speak to ASFA’s policy priorities for the election and what we’re hoping to see from the next government, I want to take a moment to address a very timely and important issue: cyber resilience.
I’m sure all of you are aware of the cyber incident that affected several superannuation funds recently.
It is now being investigated by police and government authorities.
We can say that cyber criminals undertook a co-ordinated, well-funded and sophisticated attack, attempting to access the retirement funds of Australians using stolen / approximated email addresses and passwords to log in – a process known as credential stuffing.
The superannuation sector is taking this extremely seriously, as we should. Australians place enormous trust in the super system and rightly expect that their retirement savings will be safe and protected. When that trust is tested, it must be taken seriously.
The funds involved and the broader ASFA member base, which includes the critical service providers, are doing exactly that. Reviews are already underway to strengthen systems and assess where further protections are needed.
APRA has been a strong and consistent regulator in this area, and they have managed an enormous and rapid uplift of capability across the whole financial sector, make no mistake it is a challenge for the whole financial services sector to stay ahead of increasingly sophisticated cyber criminals but we are determined to do it.
The role of ASFA as the peak association in these matters is not to be the regulator, but to bring consistency of best practice and benefit of collaboration. Last year we launched the Financial Crimes Protection Initiative (FCPI), a cross-industry program focused on improving resilience against financial crime, cyber threats, fraud, scams and financial abuse. This area of work will continue to be a top priority for ASFA – not just because of the recent incident, but because cyber resilience is core to member protection, sector stability, and long-term trust in super.
And as we head into this election cycle, that work underscores a broader challenge. Making sure the policy settings we advocate for protect the safety of Australians’ retirement savings, sustain long-term trust in the system, and support a superannuation framework that is not only equitable and effective, but resilient for the future.
So what is at stake this election?
This election matters, because the next government will shape not just the next budget, but the long-term trajectory of superannuation.
And there are some key questions that need to be answered:
- Will we continue to support a system that delivers dignity in retirement?
Or will we allow policies that chip away at preservation and long-term adequacy?
- Will we protect the gains made for women, carers, and low-income workers?
Or let the equity gaps widen?
- Will we safeguard the long-term sustainability of the system through stable policy and coordinated reform?
Or will we layer on short-term measures that add complexity and cost without improving outcomes?
Superannuation is one of the few truly national, universal and bipartisan public policy successes, alongside Medicare. But it’s not immune to erosion. It needs clarity. It needs consistency.
And it needs the political courage to say no to policies that may seem appealing in the short term but are fundamentally undermine long-term retirement outcomes.
What’s decided in this term of government will affect retirement outcomes for decades to come.
Election priorities
As we look ahead to the upcoming election, ASFA is focused on setting super up for the next generation, not just through reform but through stability.
This is a system built on long-term planning. But too often, the policy environment has been short-term and reactive. Australians deserve better. The next government, regardless of its political colour, must bring a steady hand. That means protecting preservation settings, keeping super focused on retirement, and continuing to close equity gaps where they persist.
Our election asks are simple, but critical:
1. Preserve super for retirement
This term, we welcomed the passage of the Objective of super legislation – a milestone that should guide every future policy decision.
The purpose of super is clear, it is there to provide dignity in retirement.
Preservation must be protected.
2. Deliver on equity, and follow through on wins
The government’s decision to pay super on government-funded Paid Parental Leave is a generational policy win. It will help close the gender gap and boost outcomes for parents. But it’s essential that this measure is implemented as intended and delivers on its promise to reduce structural inequities in retirement savings.
And we know there’s still more to do.
- The LISTO should be expanded to better support low-income earners and ensure fairness in tax treatment
- Super for under-18s should reflect the modern workforce, where many young people begin earning early
- And we must maintain momentum on improving First Nations retirement outcomes, strengthening financial abuse protections, and supporting inclusive service delivery across the system
3. Implement Payday Super and strengthen enforcement
The introduction of Payday Super is a positive step forward, one that will reduce the incidence of unpaid super and improve transparency for workers.
With an estimated $5 billion in unpaid super each year, it’s essential that the incoming government pushes forward with implementation and ensures the right support is in place for employers and funds. That’s money Australian workers have earned, and are entitled to, for their retirement.
We’re also calling for further measures to strengthen compliance and protect workers’ savings:
- Include SG payments in the Fair Entitlements Guarantee, so workers aren’t left short when businesses fail
- Increase ATO resourcing to better detect and recover unpaid super, and ensure enforcement keeps pace with evolving payment systems
4. Uplift member choice
Australians need confidence to engage with their super and make informed decisions, whether it’s about contributions, investment options, or retirement products. To support that, we’re calling for improvements to the way the system informs and reflects member choice:
- Government-backed education campaigns to raise financial literacy and help members better understand and engage with their super
- Improved product and performance assessments that better align with member behaviour, intent, and risk appetite
And finally, to uplift consumer choice, and improve retirement outcomes, the sector wants an incoming government to maintain the momentum behind advice reform, so we can all work toward better outcomes for today’s retirees and the next generation.
Financial advice
Let me speak a little now about financial advice, because this is where the future of super becomes personal. When I trained as a Financial Advisor, I spent years learning how to calculate Reasonable Benefit Limits, and 5 minutes after I qualified, they were abolished, this possibly drives my desire for policy stability – maybe it’s PTSD.
Australians are retiring with more super than ever before. That’s a clear success of the system. But we know that many members still feel uncertain about how to make the most of their savings once they reach retirement.
Each year, the system now pays out more than $120 billion in benefits across almost 2 million super accounts in drawdown phase.
While net inflows into APRA-regulated funds remain strong, and the tipping point where outflows exceed inflows isn’t expected until after 2062–63, the direction is clear: more people are moving into the retirement phase, and that brings with it a growing need for guidance and support.
Advice is that missing link. Right now, many members are locked out of advice because of cost, complexity, or confusion.
In light of the recognition of those outflows, we also welcomed the measures announced by the government last year to improve access to retirement income products. But to be effective, those products need to be supported by guidance, information and advice that is scoped appropriately, delivered by qualified professionals, and supported by a framework that reflects how people actually engage with super.
We’ve been actively engaged in the development of the Delivering Better Financial Outcomes reforms, which build on the recommendations of the Quality of Advice Review led by Michelle Levy. From the outset, we’ve worked closely with government and brought together the sector to help shape a model that improves access to advice to ensure the reforms deliver on their purpose.
ASFA’s role in this reform discussion has been clear: we want to see progress and we want to see a package delivered that works for the whole sector – for all types of superannuation funds, for financial advisers, and most importantly for the millions of Australians who would benefit from more affordable and accessible financial advice.
These reforms represent a practical way forward, aimed at making advice more accessible, more affordable, and better aligned with the needs of fund members, particularly as they approach and enter retirement.
These reforms recognise that not every member needs comprehensive financial planning. Sometimes, what’s needed is simple, scoped advice; about how to start an income stream, how to make a decision about retirement timing, or how to understand a product.
It’s about delivering access to advice that provides timely and relevant guidance on things like retirement income strategies, without unnecessary red tape.
This is not going to be an easy navigation and I acknowledge in the room today the FAA and FSC who will represent their members in this process, as well as many others. I think there is broad agreement on the principles, and we need to come together on the detail of how we get there. I have faith that where parties agree on the principle but differ on the detail, there is always a path to be found to reform.
We all want to see more Australians the advice they need via professionals who are appropriately trained, working within clear boundaries, and delivering advice that remains in the member’s best interests.
And we want an incoming government will continue to be razor focused on that too, it has been pleasing to hear such strong bipartisan support for this today – because a strong super system isn’t just one that grows savings, it’s one that supports Australians to use their savings well.
This is the voice we will bring to the incoming Minister as well.
Progress the legislation. Let’s get it passed and get more people benefiting sooner.
Closing
To close: super is coming of age. It’s an economic anchor, a part of Australia’s social fabric, and a source of national pride.
But like any system that touches nearly every Australian, it needs careful stewardship. It needs policy settings that are stable, considered, and focused on the long term.
As we head into this election and the next year, ASFA will advocate for policies that protect and enhance the system. And for a policy environment that gives funds, advisers, and members the confidence to plan ahead.
Thank you for the work you all do. Thank you for the advice and guidance you provide your clients. And thank you for the opportunity to be part of this important conversation.
For further information, please contact:
ASFA Media Manager Richard Garfield, 0451 949 300.
About the Association of Superannuation Funds of Australia (ASFA)
ASFA, the voice of super, has been operating since 1962 and is the peak policy, research and advocacy body for Australia’s superannuation industry. ASFA represents the APRA regulated superannuation industry with over 100 organisations as members from corporate, industry, retail and public sector funds, and service providers. We develop policy positions through collaboration with our diverse membership base and use our deep technical expertise and research capabilities to assist in advancing outcomes for Australians.
We unite the superannuation community, supporting our members with research, advocacy, education and collaboration to help Australians enjoy a dignified retirement. We promote effective practice and advocate for efficiency, sustainability and trust in our world-class retirement income system.
