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 added thermal coal companies to its list of investment exclusions.
The fund has expanded its corporate superannuation solutions to partner with Australian businesses of all sizes.
The chief executive of Aware Super anticipates a significant shift in how ESG factors will influence portfolio values in the next six years, surpassing the changes witnessed in the past two decades.
In a recent statement, shadow assistant minister for home ownership and Liberal senator for NSW, Andrew Bragg, accused ‘big super’ of fabricating data attributed to the Reserve Bank of Australia to push their agenda.
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