The Assistant Treasurer Senator Rod Kemp announced today key data on the size and growth of superannuation assets for the December quarter 1997.
Superannuation contributions for the December 1997 quarter were 17% higher than the December 1996 quarter. Total contributions in 1997 were 13% higher than in 1996, increasing from $28.1 billion to $31.7 billion. The strongest growth came from member contributions, which increased 27% over the previous year, to $11.5 billion. In the same period, employer contributions increased by 6% to $20.2 billion.
Superannuation assets continued to grow strongly, with the overall value of superannuation assets increasing by 17% over the year to reach $325.7 billion. This increase in value was realised in spite of a slump in capital markets during the quarter.
The figures show Australians are giving superannuation an overwhelming vote of confidence.
The figures further prove that superannuation is one of Australias great growth industries. They also highlight the Governments success in creating a more favourable climate for growth in private savings.
The figures will be contained in the quarterly Insurance and Superannuation Commission Bulletin to be released in early April. A summary of other important results is attached.
CANBERRA
26 March 1998
Contact:
Penny Farnsworth, Assistant Treasurers Office
Telephone: (02) 6277 7360
Tony Nichols, Insurance and Superannuation Commission
Telephone: (02) 6213 5378
ATTACHMENT
Summary of Main Results from the December ISC Bulletin
- Total superannuation assets had reached $325.7 billion by end December 1997, representing growth of 1.2% during the quarter, or 17% during the year ended December 1997. This result is in spite of a slump in capital markets during the quarter.
- Capital market performance during the December quarter caused net deposits to be the main component of growth, accounting from 94% of growth. Net earnings accounted for the remaining 6% of growth.
- Contributions for this December quarter compared to the last December quarter were up 17%. Contributions for the year ended December 1997 were up 13% compared to the previous 12 months, increasing from $28.1 billion to $31.7 billion.
- Annual contribution growth is consistent for both large and small funds, that is, after discounting the rapidly growing excluded funds sector, contribution growth for large funds is still 13% per annum.
- The strongest growth came from member contributions, increasing by 27% over the previous year to $11.5 billion. Employer contributions increased 6% to $20.2 billion.
- During 1997 $11.1 billion in net contributions (ie., contributions less benefits) flowed into superannuation. In other words, during 1997 around $11 billion more flowed into superannuation than flowed out.