Australia's compulsory superannuation reduces the cost of the Age Pension on the Budget and has contributed to economic stability and growth, according to the Association of Superannuation Funds of Australia (ASFA).
A report by ASFA has found the increase in the Superannuation Guarantee (SG) from nine to 12 per cent indicates the cost of tax concessions associated with such an increase stabilises relatively soon, and the benefit in reduced pensions continues to grow.
"As a result, there is a positive overall impact on the Budget flowing from an increase in the SG as the system matures given that the Age Pension expenditure savings gradually offset the cost of the tax concessions," the report said.
The report noted that Australia is above the Organisation for Economic Co-operation and Development (OECD) average for savings and in turn is reducing Australia's reliance on foreign capital, reducing both the risk and the cost of investment in Australia.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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