Government backbenchers attacking industry superannuation funds have been sent a message by Industry Super Australia (ISA) – they are undermining the ability of the funds to invest to help Australian businesses emerge from the recession.
ISA has published a new report pointing to a $33 billion industry superannuation fund investment pipeline slated to stimulate business activity and create thousands of jobs.
The report, Super in the Economy 2020, was conducted by IFM Investors and ISPT and includes forecasts based on the present legislated scenario of small, incremental increases in the super guarantee (SG) and calls for a more efficient super system and stable policy settings, including sticking to the rate rises, to unlock additional investment.
It also argues for improving government procurement processes to save taxpayers money and get major public projects going quicker.
Other major findings include:
* Industry funds’ outperformance has added an estimated $151 billion in total to national superannuation savings over the past 23 years;
* A member is estimated to be $30,250 better off on average with an industry super fund account;
* A survey of nine industry funds suggests forward CAPEX spending totalling $33 billion;
* Of which, $19.5 billion in CAPEX will create over 200,000 jobs between 2020 and 2023;
* Investments save the Federal budget $2.7 billion through higher tax receipts, lower pension payments and lower interest costs alone; and
* Spending in 2018-19 alone generated at least 111,257 jobs (last full financial year with available data).
Commenting on the report, ISA chief economist, Stephen Anthony, said everyone benefited from a strong industry superannuation system.
“It is proven to strengthen the economy, crate jobs and grow workers retirement savings.”
