Employer contributions to superannuation have actually declined for two of the past three quarters, according to a new analysis released by the Financial Services Council (FSC).
The analysis, developed by FSC chief economist James Bond, found that while the decline in the March quarter was small at 0.2 per cent, it was concerning because of the significance of compulsory employer contributions to total flows.
He noted, however, that the lower employer contributions had been offset by an increase in voluntary contributions, which had posted their biggest increase since September 2007 to be 22 per cent higher than the same quarter in 2012.
"The substantial increase in discretionary fund flows in the March quarter can be attributed to the strong performance of the equities market and positive reports of returns from superannuation funds," Bond said.
Total funds under management for the Australian Prudential Regulation Authority-regulated sector reached $1 trillion in March.
