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05 November 2025 by Adrian Suljanovic

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Govts may push for super money

  •  
By Christine St Anne
  •  
4 minute read

A policy to mandate super funds to invest in public projects could be on the agenda as governments face shrinking revenue bases.

Governments may force superannuation funds to help fund public infrastructure projects in the future, according to an industry chief.

Speaking at an FST Media conference in Sydney yesterday, Financial Services Council chief executive John Brogden said governments might mandate a portion of Australia's trillion-dollar super industry to fund public infrastructure projects.

"There will come a day where there may be a policy change, when governments face funding constraints from a shrinking tax base as more people are retiring," Brogden said.

"They will see this trillion-dollar superannuation industry and think it viable to tap say 1 per cent of that sector and mandate that into infrastructure projects."

 
 

He said there was already evidence some politicians were eyeing Australia's compulsory superannuation industry.

"During the last election, [Australian Party leader] Bob Katter said more money managed by superannuation funds should be spent in country Queensland. The Greens will probably want to mandate 1 per cent to renewable energy," he said.

"You can't rule out that this sort of policy approach will be part of a growing debate, particularly as governments will face increasing constraints on their revenue bases."

He predicted there would be fewer superannuation funds as a result of the government's Stronger Super measures. 

Superannuation funds will be forced to merge due to cost pressures from the reforms.

Brogden said there would probably be five big retail superannuation funds and five to 10 large industry funds. 

This would boost the economic power behind superannuation funds, which would make them key influencers on economic policy, he said.

"The chiefs of funds such as AMP and AustralianSuper are big and ugly enough to become influential in economic policy. As the larger superannuation funds become direct investors in infrastructure projects expect them to also play a role in directly influencing economic policy," he said.