Superannuation contributions to Australian Prudential Regulation Authority (APRA) funds rebounded in the December quarter, as a result of growth in equity markets.
Total contributions in the December quarter were $21.6 billion, up by 10.5 per cent or 2.5 billion from a declining result in the September period.
"The rebound in contributions in December reflects the sustained growth in equity markets, strong returns to superannuation funds in 2012 and an absence of negative news out of Europe and the United States," FSC chief economist James Bond said.
The result boosted total contributions for the 2012 year to reach $86.9 billion, which was an increase of 4.7 per cent on 2011.
Employer contributions were $4.1 billion or 6.2 per cent higher than the previous year result and discretionary contributions were $2,000 million or 1.3 per cent lower.
Discretionary contributions to superannuation funds for the December 2012 quarter recorded their first positive growth since September 2011.
"The rebound in discretionary contributions in the December quarter after a year of decline is a welcome sign of improved confidence in superannuation," Mr Bond said.
"However, other recoveries in discretionary contributions following the recent financial crisis have been short lived - often lasting only one or two quarters. This market sensitivity will continue."
Employer contributions were $940 million or 5.5 per cent higher than in the prior corresponding period, while discretionary contributions were $414 million or 13 per cent higher.
Mr Bond said that this rise in employer contributions in the December 2011 result was not as strong as the double digit growth recorded in the five years prior to the global financial crisis.
