ABC upsets industry funds
The Industry Super Network (ISN) has taken umbrage at reports on the ABC that returns across the entire superannuation sector are barely outpacing inflation.
The ISN, which has frequently criticised the returns achieved by retail master trusts, said the ABC claims were not supported by official data with statistics compiled by the Australian Prudential Regulation Authority (APRA) over the 13 years to 2009 revealing the average industry fund had returned 5.47 per cent – well above the annual inflation rate of 2.8 per cent.
“Even the expensive retail super sector secured an average return of 3.59 per cent,” ISN chief economist Sacha Vidler said.
He said the ABC had to account for why its calculated return of 3.04 per cent differed so markedly from official results.
Vidler claimed the ABC had failed to compare apples with apples because the returns given for bank deposits and Government bonds were gross of taxes and administrative costs, while the returns for super funds were net of such costs.
AUTHOR
Mike Taylor
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