Total superannuation assets were $3.5 trillion at the end of the June 2023 quarter. Total MySuper assets increased by 3.3 per cent over the June quarter 2023 to $996 billion.
The commentary below relates to funds with more than six members.
Employer contributions totalled $34.7 billion for the quarter and $122.5 billion for the year ending in June 2023, which represented a 12.9 per cent increase compared to the year ending in June 2022. This is in part due to the Superannuation Guarantee (SG) rate increase to 10.5 per cent from 1 July 2022, high employment growth over the year and higher wage inflation. SG contributions accounted for around three quarters of employer contributions.
Member contributions have been strong, totalling $15.7 billion for the quarter and $42.7 billion for the year ending June 2023, a 13.1 per cent increase over the year compared to June 2022. The significant increase in quarterly member contributions compared to the March quarter is similar to the experience in previous June quarters, likely because June is the final quarter for personal contributions in the financial year and individuals utilise the 15 per cent tax rate on superannuation contributions up to the concessional contributions cap.
Benefit payments totalled $29.1 billion for the quarter and $102.1 billion for the year ending June 2023, a 19.6 per cent increase over the year compared to June 2022.
The rate of return (ROR) for entities with more than six members for the June 2023 quarter was 1.9 per cent and for the year was 8.6 per cent. The five-year average annualised ROR was 5.3 per cent.
Over the June 2023 quarter, total assets for entities with more than six members increased by 2.4 per cent (or $62.1 billion) to $2.6 trillion. With $2.3 trillion in investments, 53.8 per cent were investments in equities (21.9 per cent in Australian listed equities; 27.0 per cent in international listed equities; and 4.9 per cent in unlisted equities). Fixed income and cash investments accounted for 28.4 per cent of total investments (19.5 per cent in fixed income and 8.9 per cent in cash). Property and infrastructure accounted for 15.6 per cent of total investments whilst other assets, including hedge funds and commodities, accounted for 2.2 per cent.