Data from the Australian Prudential Regulation Authority (APRA) indicates a notable surge in personal super contributions. The March quarter data depicts a superannuation sector that was steady early this year, despite looming uncertainties related to international economic policies.
Over the 12 months leading to March's end, super returns have experienced a modest growth of 5.9%. Focusing on larger APRA-regulated funds, the total contributions for the quarter reached an impressive $46.8 billion, amounting to $202.8 billion for the year ending March 2025—a significant uptick of 14.4% from the previous year. Employer contributions alone hit $36.7 billion for the quarter, and $147.1 billion for the year, marking a 10.3% increase year-on-year.
This growth pattern is partly reflective of the increase in the super guarantee rate from 11.0% to 11.5% implemented in July 2024. Meanwhile, member contributions recorded $10.1 billion for the quarter and $55.7 billion for the year, escalating by 26.9% compared to the previous year, significantly due to personal contributions.
Benefit payments have increased to $127.5 billion for the year ending March 2025. This 11.6% rise is linked to a 14.9% boost in pension payments and a 9.1% rise in lump sum payments. For the quarter, lump sum benefit payments accounted for $16.7 billion, while pension payments were $13.9 billion.
In terms of net contribution flows, which account for contributions, net benefit transfers, and subtract benefit payments, the quarter saw $11.7 billion. For the 12 months up to March 2025, net contribution flows rose by 13.4% to $67.0 billion.
