POWERED BY MOMENTUM MEDIA
NSW gains super earnings from accounting amendment
New South Wales superannuation asset earnings will be re-calculated using an amended accounting standard, the NSW Treasurer and Minister for Industrial Relations, Mike Baird, told the annual NSW Business Forum yesterday.
It will lead to an extra $1 billion in super asset earnings, he said.
Baird said interest would be calculated in the 18 June State Budget using the Commonwealth’s 10-year bond rate. A similar amendment to the accounting standard has already been introduced in Victoria, which led to approximately $600 million a year extra over forward estimates.
The amendment would affect the operating result but not the cash result or superannuation liability, Baird said.
Softening of NSW tax revenues was also putting pressure on the state’s AAA credit rating, the audience was told.
The Institute of Chartered Accountants head of reporting policy, Kerry Hicks, said the accounting standard change affected the accounting presentation but not the state’s superannuation liability.
“The change will impact all entities that have defined benefit schemes, including corporate businesses,” she said.
“The impact on governments is larger as these types of schemes are more prevalent in the public sector. All State government budgets this year are likely to include the change to the accounting standard.”
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
As institutional investors grapple with shifting sentiment towards US equities and fresh uncertainty surrounding tariffs, Australia’s Aware Super is sticking to a disciplined, diversified playbook.
Market volatility continued to weigh on fund returns last month, with persistent uncertainty making it difficult to pinpoint how returns will fare in April.
The Association of Superannuation Funds of Australia (ASFA) has called for the incoming government to prioritise “certainty and stability” when it comes to super policy.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
