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AustralianSuper CEO urges focus on lower-income earners in super reform debate

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By Maja Garaca Djurdjevic
September 04 2025
2 minute read
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The CEO of one of Australia’s largest super funds urged the government on Wednesday to focus on lower-income earners over their higher-earning counterparts.

Speaking at the National Press Club on Wednesday, the chief executive of AustralianSuper, Paul Schroder, said super’s tax concessions are a cornerstone of the system.

“We must also recognise that tax concessions are central to the success and fairness of superannuation – they’re not giveaways or foregone consolidated revenue – they are part of the long-term social contract that encourages Australians to save for retirement,” he said.

 
 

“The deal here is simple: I lock my money away for 40 years and, in return, the government gives me concessional tax arrangements … Tax concessions are incentives designed to reward long-term saving and shift the burden of retirement funding from future taxpayers.

“As the system matures, these concessions have become more targeted and equitable”.

He highlighted that reforms such as contribution caps, higher taxes for high-income earners, and transfer balance caps in retirement have made the system more equitable, and he suggested further fine-tuning could continue that evolution.

“Reviewing tax thresholds for both high and low incomes could be a continuation of that evolution,” he said.

“Policymakers, regulators, and the super industry must continue to evolve the system to deliver a sustainable and equitable retirement for all. Concessional tax arrangements are central to that.”

Expounding on this further during the Q&A part of his address, Schroder said the “$3-million-dollar proposition” is “kind of logical”.

“Very high-income earners and very large account balances could be taxed differently, that’s kind of logical,” he said, but stressed his focus would be on lower-income earners.

“There is a group of people who earn between $39,000 and $45,000 who don’t enjoy the same tax concessions as the rest. And if I was going to be providing any guidance to the government, I’d be saying that’s the group that should be compensated more,” he said. “I’m not too stressed about the $3 million, but if we’re going to use energy and time, I’d be thinking about lower-income earners rather than higher.”

Asked for his thoughts on taxing unrealised gains, Schroder added: “It’s up to the government and the parliament to set the rules, and we’ll do whatever the government and the parliament set”.

Last month, Schroder said it is very important for the $4 trillion superannuation industry that there is a “robust and strong” SMSF sector.

At the time, speaking on the ABC’s 7.30 Report, Schroder said while he believes the $3 million super tax proposal “broadly seems like a reasonable number”, the threshold should be indexed with inflation.

“The reason it should be indexed is because we're in the business of making people richer in retirement. We want everyone to have more money,” he said.

“If you don't index it, eventually people will get caught by it.”

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