More Sovereign Wealth Funds in Australia’s Future
Australia has been rife with talk about establishing new sovereign wealth funds. South Australian Premier Jay Weatherill publicized the development of a future fund for South Australia’s state government. Western Australia launched its future fund in 2012. On the national front, in the past week, Labor party leadership candidate Bill Shorten supported an idea proposed by former Prime Minister John Keating about creating an additional wealth fund, to help with Australian pensioners living past 80 years.
Mr Keating made the remarks about an extra superannuation fund in November of 2012 in a speech to the Association of Superannuation Funds of Australia. Even though employer contribution rates are slated to rise to 12% by 2019, Keating suggested that an extra 3% should be contributed to take pensioners “from 80-100”. The sovereign wealth fund would essentially be devised for elder care.
The Association of Superannuation Funds of Australia estimates that the aggregate total in all superannuation funds is around A$ 1.62 trillion as of June 30th, 2013.
Increasing the Superannuation Guarantee Rate from 9% to 12%[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
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