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06 November 2025 by Olivia Grace-Curran

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Much ado about nothing

  •  
By Alice Uribe
  •  
5 minute read

Concerns that the superannuation industry will have to prop up the federal government's budget infrastructure plans seem to be misguided.

Some announcements in last week's federal budget certainly divided the superannuation industry.

Debate was heated over the new rules for concessional superannuation contributions and the increase in the eligible age for the age pension to 67 by 2023.

Industry bodies, such as the Association of Superannuation Funds of Australia and Australian Institute of Superannuation Trustees (AIST), expressed their concerns about the pension age increase.

The AIST was also worried older Australians could be unfairly affected by the caps on concessional super contributions.

 
 

The government's plan to allocate $22 billion to infrastructure projects was not at first glance an area of focus for the super industry.

However, last weekend a national broadsheet newspaper suggested the government would be looking to super funds to cover the costs of the infrastructure projects it had announced.

Suddenly the infrastructure allocation became a point of concern for the industry.

According to the front-page article in the Weekend Australian, the government had a "$58 billion hole in its nation-building program" that it would look to plug with the super savings of everyday Australians.

"The funding shortfall for approved infrastructure projects has raised concerns that unless a greater portion of national savings can be accessed, some of the 15 rail, road and ports projects announced by Wayne Swan as Tuesday night's budget centrepiece may never be built," Adele Ferguson wrote in the article.

The article also implicated government advisory group Infrastructure Australia, saying it was to develop investment pathways to funnel super funds into infrastructure.

This week at the annual AIST budget briefing in Sydney, Superannuation and Corporate Law Minister Nick Sherry hit back at the claims.

"The debate over the weekend went a little off track," Sherry said.

"The government will not be forcing super funds to invest in infrastructure projects. If trustees were to invest in such projects, they would have to stand the test of the return to members."

Infrastructure Australia board member Garry Weaven also disputed the claims.

"I have not heard the government is offering any incentives to super funds to invest in infrastructure projects," Weaven said.

He emphasised that regardless of incentives, super funds must look at infrastructure projects on a case-by-case basis, assess them on merit and ensure any investments were in keeping with the long-term objectives of their members.

"Many of the current projects announced by the government are new projects that entail a lot of risk, such as construction risk," he said.

At the AIST briefing, AMP Capital chief economist Shane Oliver commended the government on its budget announcement and its infrastructure plans.

"The criticism of the last two stimulus packages was that there was a lot of focus on the individual. The budget has addressed that concern. It's good to see that the focus has shifted to help Australia's potential," Oliver said.