Superannuation has shown strong and sustained growth, the Assistant Treasurer, Senator Rod Kemp, said today.
Once again statistics released by the Australian Prudential Regulation Authority (APRA) show that superannuation continues to grow at an impressive rate.
Senator Kemp said that the growth in superannuation which has been shown in successive quarters demonstrates beyond doubt that superannuation remains an attractive savings vehicle.
The latest figures from APRA for the September 1998 quarter indicate contributions rose by 22.3% over the September quarter 1997 or 20.4% for the 12 months ended 30 September this year, an increase from $29.6 billion to $35.6 billion for the year.
Member contributions, which are mainly voluntary, increased at an extremely strong rate of 31% over the previous year, to $13.8 billion.
Superannuation assets also continued to grow, with the overall value of superannuation assets increasing by 9% during the previous 12 months to reach $364.6 billion. This is despite an overall net investment loss during the September quarter following a decline in Australian equity markets in that quarter.
The figures will be contained in the quarterly APRA Insurance and Superannuation Bulletin to be released shortly. A summary of other important results is attached.
CANBERRA
22 December 1998
Contact:
Penny Farnsworth,
Assistant Treasurer’s Office
(02) 6277 7360
Tony Nichols,
Australian Prudential Regulation Authority
(02) 6213 5378
ATTACHMENT
SUMMARY OF MAIN RESULTS FROM THE SEPTEMBER APRA BULLETIN
- Total superannuation assets had reached $364.6 billion by the end September 1998, representing growth of 0.6% during the quarter, or 9% during the year ended September 1998.
- Superannuation funds experienced an overall net investment loss during the September quarter, partly due to a downturn in Australian equity markets, so that net deposits accounted for all assets growth during the quarter.
- Contributions for this September quarter compared to the last September quarter were up 22.3%. Contributions for the year ended September were up 20.4% compared to the previous 12 months, increasing from $29.6 billion to $35.6 billion.
- The strongest growth came from member contributions, increasing by 31% over the previous year to $13.8 billion. Employer contributions increased by 15 per cent to $21.8 billion which in part reflects the increase in Superannuation Guarantee contributions from 6% to 7% from July 1998.
- During the year ending September 1998 $14.4 billion in net contributions (ie., contributions less benefits) flowed into superannuation. In other words, during the year to September 1998 around $14 billion more flowed into superannuation than flowed out.