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07 November 2025 by Adrian Suljanovic

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Member contributions dip

  •  
By Christine St Anne
  •  
4 minute read

Changes to the contribution cap limits are the key driver behind the fall in voluntary member contributions.

Member contributions into superannuation have fallen by 9 per cent since the last June quarter, according to the latest superannuation statistics from the Australian Prudential Regulation Authority.

In June 2010, people contributed a total of $5.2 billion into superannuation, compared with a $5.7 billion in June 2009.

Member contributions into industry funds fell by 7 per cent from $1.015 billion to $945 million.  Contributions into retail funds fell by 13 per cent from $3.735 billion to $3.251billion.

Changes to the contribution cap limits into superannuation have hit member contributions, according to the Australian Institute of Superannuation Trustees (AIST).

 
 

"The drop in voluntary contributions is more likely a symptom of these new tax arrangements and the fact that it is high income earners who tend to be the most able to make voluntary contributions, than any dramatic drop in confidence," AIST chief executive Fiona Reynolds said.

"We would expect the level of contributions to drop this year as a result of less generous tax arrangements for those under 50 who have seen their concessional cap limits halve since July 2009."

Member inflows, however, remained strong in the lead up to the June quarter.

Member contributions into retail funds increased from $1.9 billion in March to $3.3 billion in June 2010.

During the same period, member contributions into industry funds increased from $494 million to $945 million.

"We would expect fund inflows to be higher in the June quarter than preceding quarters as this is when many people, particularly the self-employed, tend to be the most engaged with their financial affairs in the lead up to tax time," Reynolds said.

People aged 50 and over with a superannuation balance of below $500,000 will continue to have a concessional contributions cap limit of $50,000 applied to them, it was announced in this year's federal budget.