Superannuation contributions made by employers topped $15 billion for the first time in the fourth quarter of 2011, adding considerably to the size of the nation's huge savings pool, Australian Bureau of Statistics (ABS) figures have revealed.
Total social contributions made by employers to employees, which are primarily made up of super contributions but also include workers' compensation premiums, rose 3.1 per cent in the 2011 December quarter to $19.05 billion in original terms, up from $18.48 billion in the September quarter.
Of the $19.05 billion payment, 79 per cent, or $15.03 billion, was made up of employers' superannuation contributions, which were up 3.1 per cent or $452 million, from $14.58 billion in the September quarter, according to the ABS data.
Total compensation of employees, made up primarily of salaries and wages, was $180.19 billion in the December quarter, up 3.1 per from $174.70 billion in the third quarter.
The $15.03 billion contribution to superannuation savings made by employers will add to the nation's superannuation savings pool, which was worth $1.28 trillion in the 2011 September quarter. Over the 12 months to September 2011, there was a 2 per cent rise in total estimated superannuation assets, with growth capped by the fall in share markets.
Separately, data published by the Australian Prudential Regulation Authority last week showed contributions made to all superannuation entities totalled $104.8 billion over the year to 30 June 2011. Employer contributions made up the bulk of that, $71.4 billion, up 4.8 per cent from $68.1 billion in 2010.
Employer contributions are contributions received from employers and include mandated employer contributions such as superannuation guarantee (SG) amounts, salary sacrifice contributions and voluntary employer contributions. Employers must make super contributions on at least a quarterly basis.
Over the year to 30 June 2011, fund members contributed $32.5 billion into super, up from $30.5 billion in 2010.
An increase in the SG is expected to add to the rate of growth in employer super contributions.
The SG rate will be increased gradually, with initial increments of 0.25 percentage points on 1 July 2013 and on 1 July 2014. Further increments of 0.5 percentage points will apply annually up to 2019/20, when the SG rate will be set at 12 per cent.
Meanwhile, the December quarter national accounts data published by the ABS yesterday revealed the economy grew by 0.4 per cent in the December quarter for an annual rate of 2.3 per cent.
Federal Treasurer Wayne Swan said the softer-than-expected economic growth would have a detrimental impact on the budget's bottom line.
However, "there's nothing in these numbers that deters the government from bringing down a surplus in 2012/13", Swan said after the release of the figures.
