Switzer Daily
5 things you need to know today
1. GDP returns to pre-COVID levels according to the RBA
The RBA says our GDP (gross
domestic production or what we make each year) is back to where it was before
the Coronavirus came to town. This means the Budget is $50 billion better off. And
the Budget has been helped by the iron ore price going above $180 per tonne,
which is more than three times the $55 price used by the Treasurer Josh
Frydenberg in working out the Budget Deficit. To understand how much the
Deficit has fallen, remember it was going to be $213.7 billion on Budget night
Australians should consider putting their money in their superannuation instead of property as fund balances are now growing faster than house prices.
Analysis by Chant West showed median growth-orientated retirement balances surged by 12.2 per cent since July 1 - something unthinkable only a year ago.
The double-digit growth in just nine months, to the end of March 2021, was even stronger than the 7.7 per cent surge in Sydney s median house price during the past year.
Australia s share market was this week close to reaching a record high, with the benchmark S&P/ASX200 just 1.5 per cent below the all-time peak of 7,197 set in February 2020 shortly before the Covid shutdowns.
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Superannuation funds are on track for a year of double-digit growth on the back of strong sharemarket gains underpinned by COVID-19 vaccine rollouts and stimulus spending in the United States.
Growth funds – those with between 61 per cent and 100 per cent growth assets – were up between 3.1 per cent and 5 per cent over the March quarter, and 12.2 per cent and 18.7 per cent over the financial year to date.
Super funds are on track for a stellar year of double-digit performance.
Les Hewitt
Balanced funds – those with between 41 per cent and 60 per cent growth assets – were up 2.1 per cent over the quarter and 8.7 per cent FYTD.
Shrinking superannuation numbers hit by COVID and consolidation
Money by Anthony Keane
Premium Content
Subscriber only Seven out of 10 superannuation funds suffered a fall in member numbers last financial year, impacted by the COVID early release scheme and other government changes. But the super sector s biggest funds - including AustralianSuper, Aware Super and Hostplus - went from strength to strength, according to data from financial regulator APRA. Big funds suffered account closures too but they were offset by more members signing up. Sector leader AustralianSuper, with 2.69 million member accounts, attracted 1100 new members a day during the financial year and its net gain was 203,010 accounts.