Media Release

Superannuation is vital for diversification of household savings, economic stability and growth: ASFA

12 June 2015

Superannuation is vital for diversification of household savings, economic stability and growth: ASFA

Research released by the Association of Superannuation Funds of Australia (ASFA) today shows that compulsory superannuation has substantially diversified the assets Australians hold, reducing risk and increasing returns for people.

The research also shows that superannuation is reducing the cost of the Age Pension on the Budget, has increased savings and reduced the cost of investment, which have all contributed to economic stability and growth.

“While considerable research on the impact of superannuation on the economy has been undertaken in the past, much of it has focused on particular aspects of superannuation or the economy. This report brings that research together into one holistic document within a rigorous economic theory framework,” said ASFA CEO, Ms Pauline Vamos.

“The primary purpose of superannuation is to improve the retirement incomes of Australians, however, compulsory superannuation has had a number of positive effects for individuals and the economy that must be taken into account in the tax white paper process.

“Over the past two decades, compulsory and voluntary superannuation savings have transformed the assets Australians hold. In 1990, Australians’ savings consisted almost entirely of real estate and cash. Today, through their superannuation, Australians are investing in a diversified range of assets, including domestic and overseas equities, fixed interest, infrastructure and commercial property.”

The report also shows superannuation tax policy has had a positive impact on investment in Australia. The growing superannuation pool has contributed to Australia having a high savings rate, relative to the Organisation for Economic Co-operation and Development (OECD) average, which is reducing Australia’s reliance on foreign capital, reducing both the risk and the cost of investment in Australia.

Increased domestic savings reduces reliance on foreign capital, with the latter recognised by the ratings agencies as a key risk to the security of the Australian financial system.

“While companies in other countries had difficulty finding funding during the global financial crisis (GFC), superannuation funds provided an important source of capital for Australian companies refinancing during the GFC,” concluded Ms Vamos.

Figure 1. Household asset composition, by wealth band, 1990 and 2010

ASFA media release

ASFA media release

Click here to view the paper, which is called Superannuation and the economy.

For further information, please contact:

James Bond, Policy Adviser, 0423 394 533.

About ASFA

ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political national organisation, which aims to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.

Daniel Mulino MP

Assistant Treasurer and Minister for Financial Services

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Born in Brindisi, Italy, Daniel was a young child when he moved with his family to Australia. He grew up in Canberra and completed his first degrees – arts and law – at the ANU. He then completed a Master of Economics (University of Sydney) and a PhD in economics from Yale.

He lectured at Monash University, was an economic adviser in the Gillard government and was a Victorian MP from 2014 to 2018. As Parliamentary Secretary to the Treasurer of Victoria, Daniel helped deliver major infrastructure projects and developed innovative financing structures for community projects.

In 2018 he was preselected for the new federal seat of Fraser and became its first MP at the 2019 election, re-elected in 2022 and 2025. From 2022 to 2025, Daniel was chair of the House of Representatives’ Standing Economics Committee in which he chaired inquiries; economic dynamism, competition and business formation and insurers’ responses to 2022 major floods claims.

In 2025, he became the Assistant Treasurer and Minister for Financial Services.

In August 2022, Daniel published ‘Safety Net: The Future of Welfare in Australia’, which aims to explore the ways in which an insurance approach can improve the effectiveness of government service delivery.