Super contributions fall in September
There was a $1 billion fall in contributions into Australian Prudential Regulation Authority-regulated super funds in the September quarter, according to the Financial Services Council's (FSC) Bond Report.
Despite a significant recovery in the previous quarter, contributions dropped 4.9 per cent to $19.5 billion. This was the first quarterly decline since June 2010, according to the FSC.
FSC chief economist James Bond said Australians remain very cautious about putting their savings in superannuation, partly due to a flat domestic economy and continued uncertainty overseas.
"Although a decline in contributions is expected every September quarter, reflecting large contributions in June before the end of the tax year, the decline in contributions in September 2012 is larger than the usual seasonal pattern," he said.
The biggest decline came in discretionary member contributions, which fell $542 million or 13 per cent compared to the September 2011 quarter, marking a fourth consecutive quarterly decline in member contributions, the FSC stated.
Employer contributions also dropped, declining by $453 million or 2.8 per cent compared to September 2011 - the first quarterly decline in employer contributions since December 2009.
"Slowing employment growth over the past six months and a decline in wages in the September quarter are almost certainly having an impact on compulsory superannuation contributions," Bond said.
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