The Australian Prudential Regulation Authority (APRA) released its Quarterly Superannuation Performance publication today, which shows that superannuation assets in Australia have reached $1.1 trillion, having grown 4.4 per cent in the March 2007 quarter and 17.1 per cent in the past twelve months.
The Minister for Revenue and Assistant Treasurer, Peter Dutton MP, welcomed the strong growth results.
“These excellent growth results show the benefits of the Government’s continued strong support for superannuation.”
“The strong growth in superannuation in Australia has been made possible through the Howard Government’s strong economic management,” Mr Dutton said.
“The Government has worked hard to deliver record low unemployment and has created over two million new jobs,” he said.
Real wages have grown by 20.08% under this Government compared to real wages going backwards by 1.8% after 13 years of Labor. Interest rates too, have remained well below the peak under Labor of 17%.
“With 1 July 2007 rapidly approaching, superannuation is about to become an even better investment for Australians,” Mr Dutton said.
The Government’s Better Super reforms sweep away complex tax arrangements, improve incentives to work and save, and increase retirement incomes.
“First and foremost, superannuation benefits paid from a taxed fund will be tax free for people aged 60 and over; no tax on super benefits taken as an income stream or as a lump sum.”
“For a 40 year old person on an average income, these changes will mean they will have around an extra $76 a week to spend in retirement at age 65 without contributing any extra to their super,” Mr Dutton said.
The reforms also significantly improve contribution incentives for the self-employed, provide more flexibility in how and when people receive their superannuation payout and, from 20 September 2007, halve the rate at which the Age Pension phases out under the assets test.
“The real risk for Australians is that if Labor is elected and runs the economy like they did last time, with high interest rates and high unemployment, superannuation savings would be crippled – you can’t save for your future if you don’t have a job,” Mr Dutton said.