Latest figures show that superannuation assets and contributions continue to record very strong growth, the Assistant Treasurer, Senator Rod Kemp, announced today.
Superannuation contributions for the March 1998 quarter were 14% higher than the March 1997 quarter.
Contributions for the year ended March 1998 were 13% higher than the 12 months ended March 1997, increasing from $29.1 billion to $33 billion. Member contributions, which are mainly voluntary, increased at an extremely strong rate of 27% over the previous year, to $12 billion.
In the same period, employer contributions increased by 7% to $21 billion.
Superannuation assets also continued to grow strongly, with the overall value of superannuation assets increasing by 19% over the year to reach $343.2 billion.
The figures confirm that Australians continue to have faith in the superannuation system and are giving superannuation an overwhelming vote of confidence.
The figures demonstrate again that superannuation remains one of Australias great growth industries. They also highlight the Governments success in creating a more favourable climate for private savings. This climate is set to further improve with the introduction of the Savings Rebate on 1 July 1998.
The figures will be contained in the quarterly Insurance and Superannuation Commission Bulletin to be released shortly. A summary of other important results is attached.
CANBERRA
29 June 1998
Contact:
Penny Farnsworth
Assistant Treasurers Office
(02) 6277 7360
Tony Nichols
Insurance and Superannuation Commission
(02) 6213 5378
ATTACHMENT
SUMMARY OF MAIN RESULTS FROM THE MARCH ISC BULLETIN
- Total superannuation assets had reached $343.2 billion by end March 1998, representing growth of 3.1% during the quarter, or 19% during the year ended March 1998.
- Strong capital market performance during the March quarter caused net earnings to be the main component of growth, accounting for 79% of growth. Net deposits accounted for the remaining 21% of growth.
- Contributions for this March quarter compared to the last March quarter were up 14%. Contributions for the year ended March 1998 were up 13% compared to the previous 12 months, increasing from $29.1 billion to $33 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 13.6% per annum.
- The strongest growth came from member contributions, increasing by 27% over the previous year to $12 billion. Employer contributions increased 7% to $21 billion.
- During the year ending March 1998 $12.1 billion in net contributions (ie., contributions less benefits) flowed into superannuation. In other words, during the year to March 1998 around $12 billion more flowed into superannuation than flowed out.