Co-contributions regime stagnating

The Federal Government’s superannuation co-contributions regime appears to have lost much of its initial impetus, with the latest Australian Prudential Regulation Authority (APRA) data revealing co-contributions represented barely 2 per cent of total superannuation contributions in the December quarter.

The co-contribution regime appeared to lose much of its impetus as a result of the global financial crisis, but the latest data suggests the bounce-back remains slow.

According to the quarterly data, industry superannuation funds led the sector in a quarter during which there were $19.3 billion in contributions.

The industry funds accounted for $6.4 billion of that amount, with retail funds accounting for $6.3 billion and public sector funds accounting for $5.7 billion. Corporate super funds accounted for $1 billion.

Despite this, self-managed superannuation funds (SMSFs) continue to account for the largest proportion of the estimated $1.32 trillion in superannuation assets in Australia.

The APRA data said SMSFs accounted for 32 per cent of assets, followed by retail funds with 27.5 per cent and industry funds with 18.7 per cent.

It said that the rate of return for the December quarter was 2.6 per cent, with corporate funds generating a return of 3 per cent, industry funds returning 2.9 per cent, public sector funds 2.5 per cent and retail funds 2.4 per cent.