The super industry is on track to generate $259.4 billion in revenue for 2015-16, according to IBISWorld’s annual Superannuation Funds in Australia report.
The report, sub-titled Under pressure: Economic uncertainty and government scrutiny push fees down, found the super industry saw profits of $778.2 million and had a total wage bill of $682.9 million.
Annual growth for the five years inclusive of 2015-16 is projected to be 3.6 per cent, and annual growth for the five years between 2016 and 2021 is on course for 4.3 per cent.
The increased growth comes despite regulatory changes that have had a “significant effect on the industry over the past five years”, said IBISWorld.
“Ongoing changes to the superannuation guarantee make it difficult to forecast the inflow of guaranteed contributions,” said the report.
“Changes announced in September 2014 will keep the guaranteed contribution rate at 9.5 per cent until 2020-21. The rate is then expected to gradually increase to 12 per cent by 2025,” said IBISWorld.
The super industry has also faced increasing pressure on fees over the past five years, according to the report.
“Over the past five years, super funds have faced growing pressure regarding fee structures from their members, the Federal Government and competitors within the industry (particularly from industry super funds),” said IBISWorld.
“The industry’s management expense ratios have already gradually started to decrease since the Federal Government’s Stronger Super recommendations were implemented in 2011.”
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