An overhaul of Australia's tax on foreign investments was part of Labor's superannuation policy announced yesterday.

"Where there are impediments to Australia's integration into the global economy, we will look at removing them. Financial services are a case in point," Federal Shadow Treasurer Wayne Swan told attendees at an Association of Superannuation Funds of Australia (ASFA) lunch yesterday. 

A lower headline withholding tax of 10 to 15 per cent will be applied to Australian managed funds, he said. 

The current headline rate of withholding tax for Australian managed funds of non-resident investors is 30 per cent.

"The withholding tax arrangements in Australia make it harder for us to attract investment," Swan said. "This is why we should examine options to make investment more attractive and grow our funds management business."

Funds will also be able to access imputation credits for foreign source income.

As superannuation funds continue to invest in international equities they are increasingly being exposed to double taxation of earnings, Swan said.

"A foreign source income tax credit paid at a lower rate than the domestic imputation credit could help address the bias," he said.

Labor will also revamp the co-contribution scheme by either lifting the $1500 cap higher or relaxing the means test to assist those on low and middle incomes.

"To my way of thinking it would be desirable over time for someone on average earnings to achieve a 15 per cent contribution with a three per cent contribution of their own," he said.

A single regulatory body will replace both ASIC and the Australian Prudential Regulation Authority, Swan said.

"We are clear about looking at a single regulatory body despite the recent hysterical outbursts from Minister for Revenue and Assistant Treasurer Peter Dutton," he said.