The Federal Treasurer, Joe Hockey has reinforced the Government’s commitment to making infrastructure investment attractive to superannuation funds.
In a statement issued following Sydney forum late last week which included the NSW Premier, Mike Baird and the State Treasurer, Andrew Constance, Hockey said discussion had focused on practical ways to encourage Australia’s superannuation industry to invest further in infrastructure projects in Australia, particularly in new assets.
“Even though Australian superannuation funds have one of the highest asset allocations to infrastructure in the world, funds can sometimes be discouraged from investing in infrastructure because of high risk, high bid costs and liquidity constraints,” the Treasurer’s statement said.
He said the forum had discussed ways that State and Territory Governments could help mitigate project risk and provide maximum access to infrastructure assets.
“In particular, we discussed investment in 'greenfield’ assets – investment in new infrastructure – and explored initiatives such as improvements to the current regulatory settings, that could encourage greater involvement in this type of infrastructure by superannuation funds,” Hockey’s statement said.
