Profit-to-member funds push for reform to invest in housing, energy and infrastructure

Profit-to-member super funds push for policy reform for Covid recovery investment in energy, affordable housing and infrastructure

Australia’s $1.4 trillion profit-to-member super sector has earmarked infrastructure, energy and affordable housing as three key areas where superannuation savings could be invested on a large scale to help drive Australia’s economic recovery from the Covid crisis.

A statement released by the Australian Institute of Superannuation Trustees (AIST) today outlines a range of investment opportunities that would contribute to growth, jobs and productivity. The statement has been sent to state governments, relevant department heads and the National Covid‐19 Coordination Commission.

AIST CEO Eva Scheerlinck said there was enormous potential for super funds to invest in areas such as housing and energy, but regulatory reform was needed to enable funds to invest on a large scale and deliver competitive returns to their members.

In the area of affordable housing, Ms Scheerlinck said limited land availability and unfavourable tax implications had made it difficult for super funds to scale up their investment in housing.

“Super funds are acutely aware of the need to improve housing affordability for their members as they recognise that it is currently very difficult for Australians to enjoy a decent, financially secure retirement without owning a home.”

Ms Scheerlinck said large scale investment in housing was the appropriate way to address Australia’s affordable housing crisis.

“Barely a week goes by these days without one