The Association of Superannuation Funds of Australia (ASFA) has joined with Infrastructure Partnerships Australia (IPA) to support the Government’s proposal for the establishment of an asset recycling fund.
In a letter to Federal parliamentarians, the two organisations have urged support of the legislation underpinning establishing of the asset recycling fund, arguing that it will provide “an important incentive for states to get on with the job of finding the money the country needs for new infrastructure”.
Further, the letter states that “Australia’s superannuation funds have the capital, expertise and commitment to invest in Australian infrastructure”, while “the infrastructure sector has the sophisticated engineering, financial and project skills to deliver the new projects we need.”
“The Australian public deserve much better infrastructure services, at much lower costs,” the letter said. “What is missing is the ability and capacity to pay for major new projects, without
lifting taxes or cutting services.”
It said that asset recycling was a proven way of marshalling the billions of dollars that governments needed to break the infrastructure backlog and that superannuation fund members also stood to benefit from asset recycling.
“As more Australians enter retirement, this will drive demand for assets with reliable income streams, such as port infrastructure and energy networks,” the letter said. “Superannuation funds stand ready and willing to invest, but there has not been a consistent pipeline of suitable projects.”
“Providing incentives to the states to sell mature assets will help establish a steady, long-term pipeline of investment opportunities, while freeing up the capital required to deliver the new infrastructure,” it said.
