Life insurers have flagged gaps in federal government tax reforms, focusing on a proposed measure to provide relief for complying superannuation entities.

The industry wants the relief extended to life insurers’ complying superannuation class, including their virtual pooled superannuation trust businesses.

The measure in a draft bill “does not explicitly extend the proposed capital loss ordering relief to life insurers’ complying superannuation class”, the Council of Australian Life Insurers says in a submission to a Senate committee.

If left unchanged, the council warns it “could leave members with lower after-tax returns and undermine the intended tax parity between life company superannuation business and other superannuation structures”.

The Senate Economics Legislation Committee is expected to report on its inquiry into Treasury Laws Amendment (Tax Reform No.3) Bill 2026 by November 13.

CALI says amending the bill is “necessary to ensure two members holding identical investments for the same retirement purpose do not receive different after-tax returns purely because of the legal structure they hold them in”.