The research from the Association of Super Funds of Australia says that high, sustained levels of funding from super for investment in the Australian economy lifted productivity levels and GDP by around 2 per cent.
ASFA conducted the research ahead of the upcoming Economic Reform Roundtable focused on productivity growth and found that the average full-time worker is now reaping a super productivity dividend of around $2,500 in pre-tax wages every year.
It added that Australia’s super pool, currently sitting at $4.1 trillion, has an investment claim on a quarter of Australia’s capital stock, with 14 per cent through institutional super.
Funding from super for investment in enterprises, infrastructure and technologies has been key to lifting productivity and when SMSFs are included, this claim rises to 25 per cent.
Mary Delahunty, chief executive of ASFA, said investment from the super sector is fundamental to lifting productivity improvements.
“Super funds deploy around half a million dollars in new financial capital every day on behalf of members. When businesses harness this capital effectively, it delivers both economic dividends and generational progress. But there is more Australia can do,” she said.
The report, The Impact and Opportunity of Superannuation on Australia’s Productivity, includes several recommendations to further unleash superannuation’s potential to improve productivity, including codifying policy stability for long-term investment vehicles by reducing regulatory volatility to encourage confident, long-term capital deployment.
It also recommended reforming performance benchmarks to support future-focused sectors by adjusting benchmarks that will ultimately drive investments in long-term sectors, including clean energy, digital infrastructure, and advanced manufacturing.
It said removing stamp duty from transaction cost disclosures under RG97 would level the playing field for Australian residential property investments compared with international assets is part of the solution to unlocking more housing supply.
Additionally, the report said modernising capital gains tax arrangements would reduce inefficiencies and enable funds to restructure investments without triggering tax events.
Other key findings from the report found that superannuation contributed to an estimated $1 trillion in additional household savings since the introduction of universal contributions in 1992, and each quarter, approximately $40 billion in new financial capital from institutional superannuation must be deployed into new investments. This is approximately $500 million per day.
It also found that the superannuation system has historically been the largest investor in venture capital in Australia, supporting innovation and early-stage technology development. Deloitte projects that total superannuation assets will reach $11.2 trillion by 2043, equivalent to nearly 200 per cent of GDP, presenting a unique opportunity to fund Australia’s energy transition, digital transformation, and infrastructure renewal.
“The productivity conversation must dare to go beyond the ‘bosses versus workers’ narrative which risks anchoring the outcomes to ‘ways of working’ and misses the opportunity to consider the role of capital to deliver a national vision,” Delahunty said.
“The productivity challenge is not unique to Australia, but Australia has a unique national asset that gives us a head start in tackling it – our multi-trillion dollar superannuation system. Ensuring we have the right settings will allow this capital to reap dividends for all Australians.”
