The Australian Prudential Regulation Authority (APRA) today released the latest edition of the Annual Superannuation Bulletin, which provides a comprehensive analysis of Australia's superannuation industry for the year to 30 June 2005.
"New figures show that the accelerated progress of consolidation in the industry has resulted in a contraction in the number of service providers engaged by trustees," APRA Deputy Chairman Mr Ross Jones said. "In particular, an increasing proportion of trustees are using fewer custodians, audit firms and investment managers."
"The decreasing proportion of qualified audit reports may indicate improvement in the prudential management of members' benefits," he added.
In the four years to June 2005, the number of superannuation entities (with more than four members and excluding exempt public sector funds and pooled superannuation trusts) has declined by over 55 per cent to 1,305. The number of audit firms servicing these entities has decreased 57 per cent over the same period while the number of entities that received a qualified audit report has dropped from 6.4 per cent to 3.9 per cent during this time.
The Annual Superannuation Bulletin also reveals that superannuation members now have 66.2 per cent more assets, on average, in each superannuation account than they did in 1997. In 1997, the average account balance in a superannuation entity totalled approximately $15,500; by 2005, the average balance had increased to approximately $25,800.
"The increase in average account balances can be attributed to a number of factors, including the introduction of and increase in the superannuation guarantee since 1993 and the investment performance of superannuation assets," said Mr Jones.
Total superannuation assets rose during the year to June 2005 by 18.5 per cent to $761.9 billion. Industry funds showed the largest growth during the year, with assets increasing by 27.4 per cent to $119.8 billion. Small funds' assets also experienced strong growth, increasing by 26.3 per cent to $175.2 billion. Retail fund assets grew by 16.9 per cent to $242.6 billion, public sector funds by 14.8 per cent to $128.6 billion and corporate fund assets by 4.0 per cent to $52.5 billion.
Benefit payments from superannuation entities were $30.0 billion for the year to 30 June 2005 and net rollovers totalled $6.8 billion.
The return on assets (ROA) for superannuation entities with more than four members was 11.1 per cent for the year to June 2005. Public sector funds had an ROA of 13.2 per cent, industry funds 12.0 per cent, corporate funds 11.3 per cent and retail funds 9.5 per cent.
The Annual Superannuation Bulletin provides information on the whole of the superannuation industry. It comprises statistics on all superannuation entities based on actual audited figures reported by the superannuation entity. It includes data provided by the Australian Taxation Office on self-managed superannuation funds.
Copies of the publications are available on APRA's website at Annual Superannuation Publication
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $2.2 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.
Media and industry inquiries only:
Stuart Snell, Head of Public Affairs
Australian Prudential Regulation Authority
Telephone: 02 9210 3384
Mobile: 0407 250 276
All other inquiries:
APRA Contact Centre
1300 131 060
