There has been a marked decline in personal contributions, which includes non-concessional contributions, to super funds in September 2016, according to the latest statistics from APRA – over a period where there was uncertainty around the future non-concessional contribution rules.
The APRA statistics for super funds with more than four members show a 28.3% decline in personal superannuation contributions in the September 2016 quarter compared to the September 2015 quarter – down from $5.341 billion to $3.990 billion. The statistics also show 15.9% decline in personal contributions for the year ending September 2016 compared to a year earlier, down from $24.156 billion to $20.315 billion.
This contributed to a decline in net contribution flows (total contributions less total benefit payments), which decreased by 18.7% to $31.7 billion in September 2016 compared to September 2015.
However the statistics do not separate out non-concessional contributions. In the APRA statistics ‘personal contributions’ includes personal concessional and non-concessional contributions, along with some other types of contributions. It does not include superannuation guarantee or salary sacrifice contributions.
During the September quarter there was uncertainty around the Government’s policy on non-concessional contributions. In mid-September the Government announced it was dropping the $500,000 lifetime non-concessional contributions cap, which was included in the 2016 Budget, in favour of a lower annual cap and restrictions for people with high super balances.
The APRA statistics show that total superannuation assets were $2.1456 trillion as at September 2016, up 7.4% compared to a year earlier. This included $1.3305 trillion in APRA-regulated funds, with $492.2 billion in MySuper products, and $635.9 billion in SMSFs.