Former Minister for Financial Services and Superannuation, Bill Shorten, has canvassed a future Labor Government altering the tax settings to encourage superannuation funds to invest in infrastructure.
Shorten, who is now vying with Anthony Albanese for leadership of the Parliamentary Australian Labor Party, told the ABC’s Q&A program on Monday night that he believed superannuation funds could play a positive role in infrastructure investment in Australia.
Further, he said a future Government could alter the settings or provide Government guarantees which would make it more attractive for super funds to undertake such investments.
His comments have come at the same time as the Association of Superannuation Funds of Australia (ASFA) suggested that more self-managed superannuation funds (SMSFs) could get involved in infrastructure investment if more liquid products became available.
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.