The Treasurer welcomes the latest Quarterly Superannuation Performance report released today by the Australian Prudential Regulation Authority. The report shows record growth in super contributions for the June 2007 quarter.
The largest ever reform to superannuation has led to increased confidence in the system and increased contributions. For the first time, member contributions were greater than employer contributions. Australia’s world-leading superannuation system is part of the Australian Government’s agenda to prepare for the challenges of our ageing population.
Total superannuation assets in Australia now stand at $1.15 trillion, representing a 25% increase over the year to June 2007.
Total contributions in the June 2007 quarter into superannuation funds covered by the APRA survey were $42.2B. This includes member contributions of $22.4B for the quarter, which is three times higher than the previous record for member contributions of $7.4B in the June 2006 quarter. Employer contributions totalled $18.9B and other contributions (including spouse and government co-contributions) totalled $0.9B.
The continuing growth in superannuation assets confirms that the Government’s Better Super reforms are being well accepted by the community. The Better Super reforms are the biggest reform to superannuation ever undertaken and are aimed at increasing retirement incomes, simplifying the taxation of superannuation, providing more flexibility in how super can be accessed and improving incentives to work and save.