Amid ongoing criticisms from Federal Government back-benchers, industry superannuation funds are reinforcing the degree to which they are moving to help Australia move out of the recession generated by the COVID-19 pandemic via key investments.
On the same day that key executives were made to appear before the House of Representatives Standing Committee on Economics, Industry Super Australia (ISA) chairman and former Federal Labor front-bencher, Greg Combet declare that industry superannuation funds would be investing “tens of billions in Australia’s economic recovery with the aim to create or support many thousands of jobs in the years ahead”.
“Not only has the superannuation sector paid out about $10 billion to members who need to access their super now, they plan to invest tens of billions more in Australian business, equities, property and infrastructure, investments that support the economy and drive growth and job creation,” Combet’s statement said. “Collectively Industry Super Funds own $80 billion in Australian infrastructure, property, and other assets. One year’s capital expenditure on infrastructure created or supported 46,000 jobs.”
It said that since the COVID-19 downturn Industry Super Funds had “poured hundreds of millions into the balance sheets of good Australian business” helping them build and expand operations with beneficiaries being the capital raisings of NAB, Reece Plumbing and Ramsay Healthare.
“And there could be billions more to come, at the end of the Global Financial Crisis the superannuation funds provided a significant portion of the $120 billion in capital raised by local businesses,” the statement said. “Industry Super Funds remain committed to supporting technology start-ups, SME businesses, social housing and aged care, as well as providing finance to the major banks.”
“Industry Super Funds hold a major stake in Australia’s economic life through investments in Australian listed companies – collective owning 10% of the ASX – debt markets, infrastructure, property and the wider financial system.”