POWERED BY MOMENTUM MEDIA
NSW gains super earnings from accounting amendment
New South Wales superannuation asset earnings will be re-calculated using an amended accounting standard, the NSW Treasurer and Minister for Industrial Relations, Mike Baird, told the annual NSW Business Forum yesterday.
It will lead to an extra $1 billion in super asset earnings, he said.
Baird said interest would be calculated in the 18 June State Budget using the Commonwealth’s 10-year bond rate. A similar amendment to the accounting standard has already been introduced in Victoria, which led to approximately $600 million a year extra over forward estimates.
The amendment would affect the operating result but not the cash result or superannuation liability, Baird said.
Softening of NSW tax revenues was also putting pressure on the state’s AAA credit rating, the audience was told.
The Institute of Chartered Accountants head of reporting policy, Kerry Hicks, said the accounting standard change affected the accounting presentation but not the state’s superannuation liability.
“The change will impact all entities that have defined benefit schemes, including corporate businesses,” she said.
“The impact on governments is larger as these types of schemes are more prevalent in the public sector. All State government budgets this year are likely to include the change to the accounting standard.”
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Australia’s neutral cash rate may lie above pre-pandemic levels, driven by rising productivity outside of the mining industry.
Nominations and submissions have opened for this year’s Super Fund of the Year Awards.
The industry body has cautioned the government against implementing unnecessary regulations for private market investments, with ASIC currently exploring reforms in this space.
The industry fund has appointed Natalie Alford as its new chief risk officer, strengthening its executive team during a period of transformation.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
