In his latest Bond Report update, FSC chief economist James Bond said June 2013 was one of the weakest quarters of contributions to superannuation funds since the global financial crisis (GFC).
The quarter defied the seasonal pattern of strong superannuation contributions at the end of the financial year, according to Mr Bond.
“Superannuation contributions at the end of the financial year have not been as strong as we would usually expect,” he said.
Total contributions for June 2013 were $112 million lower than June 2012, a 0.4 per cent drop from $25.856 billion to $25.744 billion.
Contributions also fell by $399 million between the March and June quarters in seasonally adjusted terms, according to the report.
Weak growth in September 2012 and March 2013 combined with the June quarter decline, resulting in weak contributions growth of 1.9 per cent for the last financial year, Mr Bond said.
Total contributions in the 2012/2013 financial year were $87.5 billion - $1.6 billion or 1.9 per cent higher than the previous year.
Member contributions actually jumped by $377 million or 6.6 per cent in the June quarter compared to the prior period, but employer contributions fell by 2.4 per cent or $489 million, to $19.622 billion.
“The decline in employer contributions in three of the past four quarters has overshadowed an increase in member contributions,” Mr Bond said.
“Rising unemployment and slowing GDP growth could be the reasons people are holding back salary sacrificed contributions to their superannuation funds."
Leakage to self-managed funds may also be taking higher-contributing members out of the Australian Prudential Regulation Authority-regulated sector, he said.
