Australia's wealth pool has bounced back from the financial sappings incurred during the coronavirus pandemic.
Latest superannuation figures published by the Australian Prudential Regulation Authority have revealed a year-on-year surge of more than 10 per cent in contributions for the September quarter.
Compared to a year ago, superannuation contributions shot up 11.6 per cent, injecting $134.1 billion into the nation's wealth sector.
The size of the superannuation sector rose to 3.4 trillion in total assets, a boom in size of 17.5 per cent.
Its rise over the $3 billion mark comes in light of an increase in payouts during the coronavirus pandemic from the early release scheme which sapped billions from people's retirement funds, in a bid to cushion the financial blow from COVID-19.
The rise in total assets is also attributable to the scheduled increase in the superannuation guarantee to 10 per cent from July 1.
Financial services minister Jane Hume pointed out the size of Australia's wealth system eclipses the size of the country's stock market.
"A $3.4 trillion superannuation system is larger than the ASX, and the equivalent of over 150 per cent of Australia's GDP," Senator Hume said.
"In addition to the compulsory superannuation guarantee contributions, voluntary contributions were significantly higher than over the past two years."
Senator Hume said transparency measures such as APRA's heatmap and the Your Super comparison tool are assisting in boosting outcomes for superannuation holder are making the system more efficient.
The reforms are part of the recent Your Future, Your Super reforms.
"These reforms will ensure our superannuation system works harder for all Australians, benefitting members by an estimated $17.9 billion over the next 10 years," Senator Hume said.
Over the quarter, employer contributions totalled $100.6 billion of which superannuation guarantee contributions accounted for $74.2 billion.
The biggest rise was in personal contributions which rose 45 per cent.
Industry Super Australia chief executive Bernie Dean said the legislated rise in superannuation guarantee contributions would assist younger people's retirement funds recover from the pandemic.
Industry Super Australia opposed the early release of super scheme brought in during 2020, which allowed Australian's facing financial hardship withdraw two tranches of up to $10,000 from their accounts.
"The legislated increases in the super guarantee rate will help many young people make up some lost ground if they raided their super last year, and give millions more a shot a dignified life in retirement," Mr Dean said.
"Members are pleased that Industry funds emerged from the pandemic in very good shape and are now growing their retirement savings at a strong clip."
Industry Super Australia funds include Australian Super, CBUS and Hostplus.
This story first appeared on The Canberra Times
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