The nation’s retirement savings and the economy are “inexorably intertwined”, according to the ISN, which said the increased investment would be channelled into roads, airports, ports, energy generation, hospitals and education facilities.
“Australia has an infrastructure deficit of up to $770 billion and industry super funds are ready to work with governments to further invest in critical nation building infrastructure,” ISN chair Steve Bracks said at a media briefing in Canberra.
“As not-for-profit funds with no shareholders demanding short-term results, we can patiently invest in real world assets that deliver superior, stable long-term returns to our members and economic benefits for the whole country.”
In its report, Building Australia: Super Investment Initiative, the ISN identified four steps needed for the investment in infrastructure, including improved liquidity management by super funds, a continued pipeline of projects and new financing models elevating the role of long-term owners.
There also needs to be a recognition by governments and the public that some projects are best financed by the sale of existing public infrastructure to responsible owners like super funds, according to the ISN.
The ISN also noted the need for new financing models that elevate the role of long-term owners and the need to address public concerns over private ownership of infrastructure.
“The community is apprehensive about public sector asset sales where governments don’t use the proceeds to deliver critical assets and guarantee existing services,” Mr Bracks said. “As proven responsible, long-term investors, industry super funds are uniquely placed to help state government develop new and existing assets and address community concerns.”
ISN deputy chair Peter Collins added that “as the benefits of the mining boom recede, tapping into the potential of superannuation will be key to the nation’s economic fortunes.”
