Co-contributions regime stagnating
The Federal Government’s superannuation co-contributions regime appears to have lost much of its initial impetus, with the latest Australian Prudential Regulation Authority (APRA) data revealing co-contributions represented barely 2 per cent of total superannuation contributions in the December quarter.
The co-contribution regime appeared to lose much of its impetus as a result of the global financial crisis, but the latest data suggests the bounce-back remains slow.
According to the quarterly data, industry superannuation funds led the sector in a quarter during which there were $19.3 billion in contributions.
The industry funds accounted for $6.4 billion of that amount, with retail funds accounting for $6.3 billion and public sector funds accounting for $5.7 billion. Corporate super funds accounted for $1 billion.
Despite this, self-managed superannuation funds (SMSFs) continue to account for the largest proportion of the estimated $1.32 trillion in superannuation assets in Australia.
The APRA data said SMSFs accounted for 32 per cent of assets, followed by retail funds with 27.5 per cent and industry funds with 18.7 per cent.
It said that the rate of return for the December quarter was 2.6 per cent, with corporate funds generating a return of 3 per cent, industry funds returning 2.9 per cent, public sector funds 2.5 per cent and retail funds 2.4 per cent.
AUTHOR
Mike Taylor
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
