The federal government has announced a package of tax provisions and investment incentives to support investment in infrastructure projects by superannuation funds as part of the federal budget.
The package is capped at $25 billion and will remove the application of the continuity of ownership test and the same business test and increases the value of early-stage losses by the government bond rate for selected projects.
The Association of Superannuation Funds of Australia (ASFA) said the measures formed an important step in removing barriers to super fund investments.
"It means there will be governance and a focus on developing a pipeline over 20 years, which is what we want," ASFA chief executive Pauline Vamos said.
"There is no doubt, to date, that there have been many roadblocks to the broader superannuation industry investing in infrastructure.
"The main ones have been the lack of an investment pipeline, the lack of consistency of process between states, sovereign risk and the expenses involved in preparing bids."
The government also announced the establishment of an Infrastructure Financing Group of private and public sector advisers to identify further areas for work around private financing of infrastructure.
At the same time, it strengthened the Infrastructure Australia Council with the appointment of three new members, including AustralianSuper chair Elana Rubin.
Vamos said the appointment of Rubin reflected the government's recognition of the importance of the super fund sector as a financier.
Industry Funds Management (IFM), which manages assets for a number of industry funds including AustralianSuper, has been expanding its infrastructure resources in recent months and welcomed the budget measures.
"The initiatives announced are welcome as they do appear to enhance the attractiveness of Australian infrastructure investments," IFM chief executive Brett Himbury said.
"It is nonetheless important to reinforce that Australia's superannuation system has created a large pool of capital that has a very strong interest in funding this country's infrastructure needs.
"These announcements are a good step and we hope to see more infrastructure investment opportunities in the future given the capital available, the investor expectations and the requirements of the country to improve our infrastructure."
Financial Services Council chief executive John Brogden said the measures ensured infrastructure investments kept their true value.
"It starts a very important conversation on attracting super funds and fund managers to invest in infrastructure," Brogden said.
