Figures released today by the Australian Prudential Regulation Authority (APRA) show contributions to superannuation funds (with at least $50 million in assets) exceeded $42.2 billion during the June 2007 quarter.

APRA’s Quarterly Superannuation Performance publication shows the industry experienced record member contributions of $22.4 billion during the quarter, three times higher than the previous record for member contributions of $7.4 billion in the June 2006 quarter.

Under the Government’s ‘Better Super’ reforms, the transitional tax arrangements for up to $1 million of post-tax contributions expired on 30 June 2007.

APRA’s figures show the June 2007 quarter was also the first quarter in which total member contributions exceeded employer contributions. Members contributed $22.4 billion (53.1 per cent) for the June quarter, employers contributed $18.9 billion (44.8 per cent), and other contributions, including spouse contributions and government co-contributions, totalled $890 million (2.1 per cent).

Total superannuation assets in Australia rose during the quarter by $81.0 billion, or 7.6 per cent, to $1.15 trillion. This represents a 25.1 per cent increase over the year to June 2007.

Retail funds received 54.7 per cent ($23.1 billion) of total contributions during the June quarter, industry funds 21.3 per cent ($9.0 billion), public sector funds 20.9 per cent ($8.8 billion) and corporate funds 3.1 per cent ($1.3 billion).

Industry funds showed the strongest growth during the quarter, with assets increasing by 8.4 per cent ($15.4 billion) to $198.1 billion. Retail fund assets grew by 8.1 per cent ($27.8 billion) to $372.0 billion, public sector fund assets by 7.1 per cent ($11.8 billion) to $177.5 billion and corporate fund assets by 3.5 per cent ($2.5 billion) to $71.9 billion during the quarter.

At the end of June 2007, funds with at least $50 million in assets had 29.9 per cent of superannuation assets ($242.5 billion) invested in wholesale trusts and 21.4 per cent ($173.5 billion) in life insurance companies. Individually managed mandates, where asset portfolios are tailored for or chosen by the trustee, comprised 20.8 per cent ($168.6 billion) of superannuation assets. The remaining assets were invested in other categories, including pooled superannuation trusts, unlisted public offer unit trusts and directly invested assets.

The combined return on assets was 3.2 per cent for the June quarter. The return for industry funds was 3.9 per cent, public sector funds 3.1 per cent, corporate funds 3.0 per cent and retail funds 2.8 per cent.

The Quarterly Superannuation Performance publication is available on APRA's website at www.apra.gov.au/Statistics/Superannuation-Institutions-Statistics.cfm

^a For entities with at least $50 million in assets

Source: APRA June 2007 Quarterly Superannuation Performance

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 $2.5 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.

Media and industry inquiries only:
Andrew McCutcheon, Public Affairs Manager
Australian Prudential Regulation Authority
Telephone: 02 9210 3143
Mobile: 0417 528 660

All other inquiries:
APRA Contact Centre 1300 131 060.