The Federal Government will review the amount of tax it is ripping out of superannuation, but don’t expect any early redress. The announcement on Friday by Assistant Treasurer Helen Coonan that a review of the $6 billion annual tax take on super will be undertaken doesn’t mean instant change, according to industry insiders.

But it is a start, with Senator Coonan calling for input from the industry and challenging experts to tell her “how we can do better”.

Her cautious approach to the issue, and a reminder that the income would have to be offset somewhere else, are indications that the Government won’t be moving quickly to address years of condemnation for the negative impact super taxes have on retirement allocations.

Senator Coonan said the front-end contributions tax – annual take $3 billion-plus – is the most commonly criticised tax.

And she made it clear that super must be regarded by the financial services sector as a long-term investment vehicle rather than a wealth-creation tool.

The next move is up to the super funds.