POWERED BY MOMENTUM MEDIA
Super reduces cost of Age Pension on Budget
Australia's compulsory superannuation reduces the cost of the Age Pension on the Budget and has contributed to economic stability and growth, according to the Association of Superannuation Funds of Australia (ASFA).
A report by ASFA has found the increase in the Superannuation Guarantee (SG) from nine to 12 per cent indicates the cost of tax concessions associated with such an increase stabilises relatively soon, and the benefit in reduced pensions continues to grow.
"As a result, there is a positive overall impact on the Budget flowing from an increase in the SG as the system matures given that the Age Pension expenditure savings gradually offset the cost of the tax concessions," the report said.
The report noted that Australia is above the Organisation for Economic Co-operation and Development (OECD) average for savings and in turn is reducing Australia's reliance on foreign capital, reducing both the risk and the cost of investment in Australia.
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(%)
