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ASFA welcomes capital recycling model
The Association of Superannuation Funds of Australia (ASFA) has welcomed the Federal Government's announcement of an incentivised capital recycling model to invest in infrastructure.
Federal Treasurer Joe Hockey said the State Treasurers were on board for the initiative.
ASFA CEO Pauline Vamos said the model would give incentive for superannuation funds to invest in infrastructure by offering a pipeline of investable projects.
"There's no doubt superannuation funds have an appetite to invest in infrastructure; however investment has often been stifled due to a lack of suitable, available projects," Vamos said.
"In addition, recycling this capital into new projects, where investors are less likely to take on the risk, will help fund the nation's infrastructure needs."
ASFA's approval comes after Hockey announced the Government would provide an asset recycling pool where it will provide an additional 15 per cent of asset sale value from states to states.
This is conditional on the states using the fund for new productive infrastructure investments in addition to what they have already committed.
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