Federal budget: How industry super funds are boosting the nation’s coffers
You may not know it, but if your superannuation is with an industry fund you are helping Australia’s economy get back on its feet.
Industry super funds are helping the nation rebound from the dramatic impacts of COVID-19, which were highlighted when the federal budget revealed a deficit of $213.7 billion in 2020-21.
By investing in capital projects, industry super funds create higher tax receipts, lower pension payments and lower interest costs – all of which ultimately help reduce Australia’s deficit.
These projects include infrastructure and property construction, such as social housing, new airports, public transport and energy networks, all of which generate more tax revenue for the government.
Stimulating our economy means a brighter future for the next generation. Photo: Getty
The jobs created by these projects mean less people rely on income-support payments, such as the pension, and the increase in economic growth means interest rates stay low.
In 2018-19 industry funds spent $6.6 billion on capital investments, which equates to about 0.4 per cent of Australia’s gross domestic product.
Research by Industry Super Australia shows spending by industry super funds can boost the nation’s bottom line.
Thanks to higher capital expenditure on physical assets, the budget’s bottom line can improve by almost $2.5 billion.
Your industry super fund is helping Australia’s economy back on its feet. Photo: Getty
Spending on public infrastructure stimulates massive employment growth.
Over the next three years, ISA estimates that more than 200,000 new jobs could be created just through industry super funds investing in infrastructure projects.
This in turn reduces the number of people needing welfare support. And a weakened reliance on government income-support payments represents a saving of about $45 million each year.
In another step towards a stronger economy, the super guarantee is increasing, meaning the percentage of your wage employers must contribute to your retirement savings is going up.
This will see your retirement savings increase.
The super guarantee will rise from its current 9.5 per cent in staggered amounts to reach 12 per cent by 2025.
This change will help Australians rely less on the age pension and more on their own nest eggs, further reducing the impact on the budget.
By choosing an industry super fund you’re not only taking a step towards a solid retirement plan, but you’re strengthening Australia’s economy. And putting your weight behind our nation’s future is now more important than ever.
Stimulating our economy means a brighter future for our children and grandchildren.
Industry SuperFunds are investing in projects that strengthen our economy and your retirement savings. Find out more.
See www.industrysuper.com/assumptions for more details about modelling calculations and assumptions. Consider a fund’s Product Disclosure Statement (PDS) and your personal financial situation, needs or objectives, which are not accounted for in this information, before making an investment decision.
