AUSTRALIA - Industry superannuation funds showed the strongest growth of all super funds during the second quarter of 2007, according to the Australian Prudential Regulation Authority (APRA).
These funds’ assets grew by 8.4% to A$198.1bn, with public sector funds a little slower with a 7.1% growth rate.
A statement from treasurer Peter Costello’s office stated: “The continuing growth in superannuation assets confirms that the government’s Better Super reforms are being well accepted by the community.”
It continued: “The Better Super reforms are the biggest reform to superannuation ever undertaken and are aimed at increasing retirement incomes, simplifying the taxation of superannuation, providing more flexibility in how super can be accessed and improving incentives to work and save.”
In response to the government permitting superannuation fund members large, tax free contributions, these inflows were higher than payments from employers for the first time.
Across all sectors, members were responsible for 53.1% of contributions, equalling A$22.4bn and taking superannuation assets to AUS$1.15trn, a 25.1% increase across the whole year.
The average investment return on fund assets for the same period was 3.2%.
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