Peter Costello
An Australian Prudential Regulation Authority (APRA) report has confirmed contributions to superannuation funds for the June 2007 quarter exceeded a record $42.2 billion.
APRA’s Quarterly Superannuation Performance publication shows member contributions for the June quarter exceeded employer contributions for the first time ever. Member contributions reached a record $22.4 billion — three times higher than the previous record of $7.4 billion for the June 2006 quarter. Employer contributions totalled $18.9 billion while other contributions, including spouse and government co-contributions, totalled $890 million.
Total superannuation assets now stand at $1.15 trillion, representing a 25 per cent increase for the year ended June 2007.
Federal Treasurer Peter Costello welcomed the results, saying they demonstrated the Federal Government’s Better Super reforms had increased confidence in the system and encouraged more people to take advantage of it. The reforms’ transitional tax arrangements for up to $1 million of post-tax contributions, which expired on June 30, undoubtedly boosted contributions.
The APRA results revealed that retail funds raked in the largest share of total contributions for the quarter — $23.1 billion (54.7 per cent). Industry funds received $9 billion (21.3 per cent), public sector funds $8.8 billion (20.9 per cent) and corporate funds $1.3 billion (31. per cent).
According to the results, industry funds experienced the strongest growth during the quarter, with assets increasing by 8.4 per cent ($15.4 billion) to $198.1 billion. Retail funds weren’t far behind, increasing by 8.1 per cent (27.8 billion) to $372 billion. Public sector and corporate funds grew by 7.1 per cent ($11.8 billion) and 3.5 per cent ($2.5 billion) respectively.
The results also showed industry funds were the best performers for the quarter, with a combined return on assets of 3.9 per cent. Public sector funds returned 3.1 per cent, corporate funds 3 per cent and retail funds 2.8 per cent.
