The Financial Services Council's (FSC) The Bond Report for June quarter 2014 has revealed the strongest growth in total annual contributions to Australian Prudential Regulation Authority (APRA)-regulated superannuation funds since the global financial crisis (GFC), driven by improved economic state in US and UK.
Double-digit growth was driven by a dissipation in concerns around the Euro and US debt issues and improved conditions in the UK and US. The FSC's chief economist James Bond said
"A second year of double-digit returns, bipartisan support for no negative changes to superannuation and improved economic conditions in Europe and the US have converged to make a very strong year for contributions."
The $95 billion dollars in total contributions for 2013-14 is a growth of 7.4 per cent from 2012-13.
Total contributions for 2013-14 were $95 billion, which was $6.5 billion or 7.4 per cent higher than in 2012-13.
The compulsory contributions increase from 9.0 per cent to 9.25 per cent also had an impact on growth in 2013-14.
However, according to The Report generally most change in total contributions is driven by changes in discretionary contributions.
"We are now seeing the positive impact of stability and certainty in superannuation" said Bond.