The Association of Superannuation Funds of Australia (ASFA) has said that although high income earners' tax concessions needed to be debated, it was important that changes to the system were considered in relation to superannuation's role as a retirement savings vehicle.
It was particularly important that changes to the system were measured against super's core objective — to "provide dignity in retirement", ASFA said.
It acknowledged intense speculation as to changes the Government may make to tax concessions, and said the majority of such concessions in superannuation went to Australians who had made the decision to sacrifice consumption now for a better retirement.
Those with balances over $5 million were relatively few in number, it said.
The industry body said it supported sensible changes with appropriate lead times that would encourage Australians to take their super out as a pension stream rather than as a lump sum.
ASFA said the industry already currently contributed $12 billion per annum to tax revenue, a number which increased by approximately $1 billion every year.
The nation's savings were best held in super, according to ASFA, who said the industry had proven its economic worth by supporting the development of companies listed on the ASX and the country's finance sector.
Removing impediments to investment in infrastructure, corporate bonds, small and medium cap ASX companies and venture capital would increase super's impact on economic development, ASFA said.
"Addressing impediments, such as the lack of liquidity and secondary markets for infrastructure and venture capital, has the potential to ensure superannuation contributes even more to driving forward Australia's future economic development," ASFA said.
"Superannuation is a tax-effective means to save for retirement, but in the current debate the contribution that superannuation makes to the national economy should not be forgotten."
