Superannuation contributions in the September quarter rose by more than 11 per cent compared with the September quarter last year. For the year as a whole, contributions also increased at an overall 11 per cent compared to last year (up from $27.3 to $30.3 billion). Most importantly, new contributions from members are climbing twice as fast as new contributions from employers (17% compared to 8%).
These very positive indicators highlight the Government's contribution to creating a favourable climate for growth in private savings. Government policy initiatives such as the savings rebate, the spouse contribution rebate, capital gains tax exemption on the sale of a small business, increasing the age limit on contributions, and choice of fund will make superannuation more flexible, accessible and promote competition and innovation.
Superannuation assets continued to grow at around $1 billion per week during the September quarter, with the overall value of superannuation savings surging to $317 billion.
A key driver of this growth continues to be strong market performance which accounted for three quarters of the increase. However, the impact of developments in the Asian markets will not be reflected until the December quarter figures become available.
The figures will be contained in the quarterly Insurance and Superannuation Commission Bulletin to be released on Sunday 21 December. A summary of other important results is set out in the Attachment.
Fund members are showing great confidence in the superannuation system.
CANBERRA
19 December 1997
Contact: Alex Dunnin, Insurance and Superannuation Commission - (02) 6213 5381
Attachment
Summary of main results from the September ISC Bulletin
- Total superannuation assets had reached $316.7 billion by end September 1997, representing growth of 4% during the quarter, or 20% during the year ended September 1997.
- Capital market performance during the September quarter caused net earnings to be the main component of growth, accounting for 76% of growth. Net deposits accounted for the remaining 24% of the growth.
- Contributions for this September quarter compared to the last September quarter are up 11 %. Contributions for the year ended September 1997 were up 11% compared to the previous 12 months, increasing from $27.3 billion to $30.3 billion.
- Even after discounting the rapidly growing excluded fund sector, contribution growth for large funds is still 10% per annum.
- The strongest growth came from member contributions, increasing by 17% over the previous year to $10.4 billion. Employer contributions increased by 8% to $19.9 billion.
- Net contributions (ie. contributions less benefits) were 7% higher for the year ended September 1997 as compared to the previous 12 months. In other words, during this period $11 billion more flowed into superannuation than flowed out.