The Capital Bite

Australian Retirement Trust (ART), Australia's second-biggest super fund with $370 billion in assets, is expanding its build-to-rent strategy through its property fund backed by Mirvac. The fund is in talks to acquire two Brisbane build-to-rent buildings from a Canadian pension fund, marking a significant step forward for the 15,000-unit build-to-rent sector as Australian industry super funds increasingly warm to it.

The West Australian reports that there are radical changes coming to shake up DIY super funds, specifically that there will be no lock-in contract for digital subscriptions.

The $180 billion Colonial First State superannuation fund has announced that it will only invest in overseas private credit due to concerns about the sector's concentration of risky property development assets. This decision comes after the collapse of Western Sydney property developer Bathla, which exposed several top private credit firms and highlighted the sector's vulnerability to sinking real estate values. The sector's opacity and illiquidity have also been cited as reasons for the fund's reluctance to invest locally. The $3.4 billion collapse of Bathla has had significant implications for the broader pension sector, leading it to distance itself from private credit investments.

Women in Super CEO Jo Kowalczyk has announced a plan to address the 'critical' issue of unequal retirement outcomes for Australian women who have taken time out of the workforce to care for others. The plan involves translating unpaid caring work into retirement contributions, building on existing carer credits systems in other countries such as the UK, France, Germany, and Sweden. According to ATO data, men in the 60-64 age bracket have an average super balance of $413,700, while women have $327,400, a difference of $86,300. Women's unpaid caring work is disproportionately affecting their retirement savings, with an estimated $86,000 less on average than men at the same age. The plan aims to close this gap by translating the economic value of unpaid care into retirement savings contributions.

The Coalition is considering allowing people to use superannuation to pay off a mortgage or for immediate take-home pay, following new polling commissioned by One Nation that shows 62% of voters support this idea and 28% oppose it.

Opposition housing spokesperson Andrew Bragg has outlined the Coalition's position on compulsory superannuation, promising to support greater choice for Australians when it comes to their retirement money. Bragg wants to 'continue the conversation the nation needs to have' about letting workers use their growing super money for more immediate advantage, particularly to drive home ownership in retirement. He pointed to the trend of retired renters and argued that prioritizing home ownership above all is essential to changing the economic and social character of the nation. Bragg mentioned a policy from the last two federal elections which would permit people to withdraw $50,000 of their own superannuation for a first home deposit. The Coalition is considering new rules that would allow workers to better harness their superannuation balance, for instance as collateral for a mortgage or to increase borrowing power.

The Australian Treasury's seventh Intergenerational Report projects that Australians will live longer, have more money in their super accounts at retirement, and fewer children by the mid-2060s. However, independent analysis shows that Australians are $14,500 worse off in real terms each year compared to original projections from 2002. The report also assumes a significant increase in productivity growth, driven by AI technology, which some critics argue is overly optimistic. The nation's population is expected to reach 40 million people by 2066, with life expectancy increasing to almost 90 for girls and 86 for men born in 2065/66.

Australians are making extra contributions into their superannuation account after the budget changes to capital gains tax (CGT), with one major fund, MLC, seeing a 79% increase in additional concessional contributions between May and August 2026 compared to the same period a year before. This surge is attributed to workers taking advantage of the lower tax rate on superannuation income, which is only 15%, compared to their marginal rate, which for most Aussies will be between 30 and 45%. The trend was particularly notable in July 2026, one of the biggest non-June months for extra contributions in years. Aaron Klarwein, a 47-year-old teacher from Brisbane, has been making extra contributions for years by salary sacrificing $50 a fortnight into his super account, aiming to retire in his 50s and rely on assets outside super until he hits the withdrawal age.

The Australian government's capital gains tax (CGT) crackdown has prompted investors to rush into superannuation as a way to minimize their tax liabilities, with the changes set to significantly increase the tax burden on investments held outside of superannuation. This exodus from non-superannuation investments is driven by the government's decision to extend CGT to more assets and reduce the CGT discount for individuals, making it more expensive to hold investments outside of a tax-advantaged superannuation fund. As a result, investors are flocking to superannuation as a way to shield their investments from the increased tax burden.

A Melbourne-based accountant, Adam Jacobson of Link Wealth Accounting, has highlighted a little-known superannuation rule that can result in Aussies missing out on $1,000 when leaving their job without using up annual leave entitlements. This is because annual leave is not considered 'qualifying earnings' by the ATO, meaning superannuation doesn't need to be paid on it when it's paid out. To avoid this, employees can either cash out their leave with their employer while still in the role or take the leave before quitting their job. If an employee has four weeks (20 days) of annual leave banked up and earns a salary of $100,000 per year, they would miss out on $923 in superannuation. This rule affects all employees who have unused annual leave entitlements when leaving their job.

Anthony Albanese suggested that Australia's trillion-dollar superannuation sector could be steered towards projects in the national interest, but David Whiteley, head of global external relations at IMF Investors, rejected this idea, stating 'it is not the job' of industry super funds to resolve economic issues. Whiteley argued that Australian super funds can afford to be selective with their investments to get better returns for their members and that diversifying globally is essential due to the size and growth of the sector. IMF has organised superannuation summits in the US, Europe, and Canada, where they plan to invest $10 billion over the next decade. The Canadian Prime Minister, Mark Carney, signed a memorandum of understanding with Australia earlier this year to promote greater co-operation and investment between the pension systems.

Australia's superannuation pool has reached $4.8 trillion and is forecast to hit $8 trillion by the end of this decade. One Nation leader Pauline Hanson proposed a radical change to the retirement savings system, allowing those who rent or pay a mortgage to take a quarter of their compulsory super contributions as take-home pay for up to three years. However, economists have criticized the proposal, warning it would stoke inflation and put upward pressure on interest rates, while also reducing retirement incomes. The Coalition has previously proposed similar policies, which were met with criticism from economists. Labor has encouraged super funds to invest in certain projects, but the nation's retirement savings pool is not a political piggy bank.

One Nation's proposal to allow people to cash out a quarter of their yearly superannuation contribution as an effective wage rise for three years has sparked debate on the use of retirement savings for housing and non-retirement purposes. The Coalition is considering similar plans, with some senior Liberal MPs wanting to link policies to housing rather than topping up wages. Dr Emily Millane, a leading superannuation expert, argues that the current debate on super is 'hysterical' and that it's reasonable to have conversations about super's role in the broader economy. The Grattan Institute's John Daley agrees with the core of One Nation's proposal but warns it may be inflationary. Former Labor adviser Bill Kelty cautions against Labor 'jumping up and down saying [housing-f] is not an issue for us'.

The Australian government's Digital Duty of Care bill proposes to force social media companies to remove harmful content and prompt users to choose whether they want algorithm-driven feeds. Communications Minister Anika Wells pitched the laws as a middle ground between opt-in and opt-out models, requiring users to select whether they want algorithm-driven feeds. Meanwhile, One Nation's Victorian leader Warren Pickering admitted to using illegal drugs in his 20s, while NSW Health secretary Susan Pearce announced her retirement next year after a 30-year career.

Barnaby Joyce, One Nation's treasury spokesman, clashed with ABC host Sarah Ferguson on Monday's edition of 7.30 over his party's controversial superannuation policy, which would allow renters and mortgage holders to dip into a quarter of their superannuation contributions over three years. Joyce refused to model the lifetime losses different Australians would incur from the policy, despite being pressed by Ferguson. The policy has been panned by Treasurer Jim Chalmers and Opposition Leader Angus Taylor, with Chalmers saying it was setting the scene for the next election to be a 'referendum on super'. One Nation claims that almost two-thirds of workers would be able to access the scheme, and that a median worker would receive an additional $2300 per year under the policy. Joyce also defended his party leader Pauline Hanson's response to allegations of illicit drug use and 'sexual deviance' levelled at One Nation Victorian party leader Warren Pickering.

The Albanese government's tax on super balances above $3 million has created uncertainty for wealthy members of big industry and retail superannuation funds. Two months after the law came into force, super funds are still grappling with how to assess investment returns to determine tax obligations. The legislation allows broad interpretations of how much is owed, leading to concerns about the effects of the new levy. Wealthy fund members may face different bills for similar investment returns due to varying assessments. This has sparked fresh concerns about the tax's impact on high-balance superannuation accounts. Super funds are still trying to navigate the complex rules.

A recent survey by AMP found that nearly half of Australians are worried about having enough money to retire, despite the nation's retirement wealth surging towards $5 trillion. The concerns are driven by high inflation and cost of living pressures, with many older Aussies struggling to save for retirement due to irregular work patterns or limited superannuation balances. Penny English, 53, and Craig Missell, 57, are among those who feel uncertain about their retirement prospects, with English having only $50,000 in super and Missell expecting to rely on his business as a nest egg. The survey also found that women trail men in feeling confident about retirement, with only 42% of women saying they feel confident compared to 61% of men.

Japanese banking giant MUFG has agreed to acquire Sydney-born superannuation administration start-up Grow Inc after nearly a year of negotiations. The transaction requires approval from shareholders, including HESTA and the ASX. MUFG previously paid $1.2 billion to buy Link Group two years ago. The deal involves MUFG's pension and market services division buying Grow. The acquisition is subject to shareholder approval.

Japanese banking giant MUFG has signed a binding scheme implementation deed to acquire Sydney-born superannuation administration start-up Grow Inc after nearly a year of negotiations. The transaction requires approval from shareholders, including industry superannuation fund HESTA and several other investors. MUFG paid $1.2 billion for Link Group two years ago. The acquisition is set to be finalised once shareholder approvals are secured. The deal marks the latest move by MUFG in the Australian financial services market.

UniSuper will provide its approximately 688,000 members with a one-time tax-free payment of up to $14,700 when they switch into retirement phase from October 1. This move follows similar announcements by HESTA and Colonial First State, which are also offering retirement cash boosts and reducing fees on retirement products. The payments come as super funds focus on returning money to members in the face of a 'grey tsunami' of retirees expected to hit Australia over the next decade. The average super balance across the sector has reached $202,644 for men and $164,206 for women, with nearly three million Australians expected to retire in the next decade.

Pauline Hanson's comments on superannuation ownership have reignited a long-standing debate about the role of the Australian government in managing super funds, with Hanson criticizing Labor's proposed changes to super fund governance and investment decisions.

The Financial Services Council has warned that a change in the capital gains tax rules will result in Australians paying more tax on certain assets inside their superannuation account, potentially affecting at least $372 billion of super assets and resulting in over $55 million in additional tax per year. This 'new and unexpected tax' is due to restrictions on how managed investment trusts can offset capital gains and losses. The change means that if the same assets are held directly by a super fund or through a managed investment scheme, they will be subject to different tax outcomes. Colonial First State Superannuation chief executive Kelly Power has urged the government to make amendments to remove this 'sneaky tax hit'.

The Financial Services Council (FSC) has warned that Australians will face higher tax on certain assets in their superannuation accounts due to a quirk in the new capital gains tax rules coming into effect from next year. The FSC estimates that at least $372 billion of super assets are potentially exposed to higher rates of tax, resulting in over $55 million in additional tax paid by Australians annually. This 'new and unexpected tax' arises from restrictions on how managed investment trusts can offset capital gains and losses. Superannuation funds holding assets directly will not be affected, but those held through a trust will face increased tax. The FSC is urging the government to amend the rules to remove this 'sneaky tax hit'.

Scentre Group has sold a half interest in Westfield Mt Gravatt in Brisbane to Australian Retirement Trust for $882.5 million, its second deal with the super fund giant. The sale is part of Scentre's efforts to tap fresh capital for its development program. The transaction was announced on Monday afternoon, ahead of Scentre's interim earnings result due later this week. Chief executive Elliott Rusanow will lead the company's results presentation. Westfield Mt Gravatt is a significant mall in Brisbane.

Major superannuation fund HESTA has announced significant fee reductions for retirees moving to the tax-free pension phase, effective from September 30. The changes include reducing the fixed administration fee by more than 16% to $65 per annum and cutting the asset-based fee from 0.23% to 0.18% per annum. This means a retiree with a $50,000 balance will see their total fees fall by over 18%. HESTA is also scrapping its current $10,000 minimum balance requirement for starting an Income Stream account, with just a $250 balance needed to process pension payments.

Sophia Kim, a former temporary resident in Australia who left the country in May last year, is still trying to get her compulsory superannuation paid out after lodging multiple DASP (Departing Australia Superannuation Payment) applications online. Despite working full-time at a marketing agency for two-and-a-half years and having less than $10,000 in super funds, she has been frustrated by the ATO's handling of her case, receiving conflicting information and being told to wait until her visa expired before releasing the funds. Sophia has applied multiple times since February 2023, with the most recent application being on April 15. The ATO has advised her to submit a new application, which she claims is essentially starting over. Sophia's experience highlights the challenges faced by temporary residents trying to access their superannuation.

Australian politician Pauline Hanson has publicly criticized Treasurer Jim Chalmers over his superannuation policy, calling him 'full of sh*t' in a strongly worded statement. This outburst is a reflection of growing tensions between the government and opposition on financial issues. The debate centers around proposed changes to superannuation rules, which have sparked controversy among Australians.

Treasurer Jim Chalmers attacked the opposition's stance on superannuation, saying it puts at risk Australians' access to decent retirement incomes. Barnaby Joyce, One Nation's treasury spokesman, hit back by accusing Labor of wanting to hike taxes on retirement savings, citing past broken promises as evidence. The debate centers around compulsory super and early access provisions, with Joyce arguing that the process for accessing funds due to financial hardship is too strict.

Barnaby Joyce's statement implies that Labor plans to abolish a superannuation policy benefit or concession that the Nationals' leader views as unfair or misleading to recipients. This move would be part of a broader policy agenda aimed at reforming Australia's superannuation system, which has been a contentious issue in Australian politics for years. The Labor Party is expected to introduce legislation to repeal this policy, sparking a heated debate on its merits and implications.

Assistant Treasurer Daniel Mulino has unveiled reforms aimed at protecting consumers from predatory lead generation practices in the superannuation industry, which have led to the collapse of investment schemes such as First Guardian and Shield Master Funds. The measures include a crackdown on unlicensed real-time communication about superannuation, stricter consent requirements for financial advisors, and harsher penalties for breaches. Dr Mulino stated that the reforms target 'the point at which consumers are first exposed to harm' and reduce the ability of bad actors to gain access to consumers. Around 12,000 Australians lost their retirement savings after being targeted by high-pressure sales tactics in these schemes. The Financial Advice Association of Australia has welcomed the measures but also called for the compensation scheme of last resort (CSLR) to be made sustainable.

One Nation leader Pauline Hanson has called for the relaxation of superannuation rules to allow Australians to access their retirement savings in times of crisis. Treasurer Jim Chalmers warned that expanding early access would 'decimate' retirement incomes, while Social Services Minister Tanya Plibersek said it would undermine the purpose of compulsory superannuation and leave more Australians dependent on government support in retirement. About 50,000 Australians accessed their superannuation early during the 2023-24 financial year, representing around 0.5% of Australians. One Nation MP Barnaby Joyce argued that cost-of-living pressures preventing people from affording food or housing should qualify as financial hardship. The Labor government has pledged to 'defend' the compulsory superannuation system.

The Quality of Advice Review made recommendations to help financial institutions provide good advice to their customers, but the purpose was not to replace professional advisers or sell products, but rather to give direct and informed answers to customer questions.

Home Affairs Minister Tony Burke proposed an overhaul of immigration to cabinet two weeks ago in a bid to reduce numbers. The proposal was met with little disagreement from cabinet members, who described the move as an 'ambush'. There's no fundamental disagreement about the principle behind the proposal. Cabinet members spoke on condition of anonymity.

The headline suggests that the Labor party's Shadow Treasurer has made a statement implying that the government views superannuation funds as a source of revenue to be tapped into for public spending. This is a contentious claim that could escalate tensions between the government and the financial sector, particularly if it implies plans to increase taxes on superannuation or reduce its tax concessions. The statement is a pre-emptive strike in the lead-up to the federal election.

Young Australians are expressing discontent with the compulsory superannuation system, questioning why they have to contribute 12% of their income towards retirement savings when they may not be able to access these funds for decades. This frustration stems from a lack of transparency and perceived inefficiencies in the current system, which may be exacerbated by high fees charged by superannuation funds. The government's compulsory superannuation policy has been in place since 1992, but its popularity among younger Australians is waning.

Pauline Hanson's call for an overhaul of compulsory superannuation reflects a long-standing concern among some politicians that the current system is inefficient or unfair, and may be motivated by her party's desire to appeal to conservative voters who feel that their hard-earned money is being taken away from them. This move could potentially disrupt the existing superannuation landscape in Australia, which has been shaped by decades of bipartisan support for compulsory super. Hanson's proposal is to face significant opposition from both major parties and industry stakeholders.

Coalition frontbencher Andrew Bragg has criticized the compulsory superannuation system, calling it a 'failed policy' that hasn't helped the budget and has diverted workers' pay into a 'huge viper's nest for banks and financiers'. He suggested the Liberal Party may look to reduce the 12% rate of superannuation or allow Aussies to use super to buy a house. Bragg, author of Bad Egg: How to fix super, expressed skepticism about the system's capacity to deliver for the nation.

The Australian superannuation system has grown to nearly $5 trillion in savings since its introduction in 1992, with workers now having more options than ever before. There are three main types of super funds: choice funds (industry and retail), platform funds, and self-managed super funds (SMSFs). Choice funds can be divided into industry funds, which operate as 'profit-to-member' funds with low fees, and retail funds, which have traditionally been offered by banks or insurance companies. Platform funds offer a consolidated report for multiple investments and are regulated by ASIC, while SMSFs require active management and are not for the faint-hearted.

The headline suggests that the Labor government's proposed superannuation tax changes will have a significant impact on Australians' retirement savings, prompting the publication to offer seven 'hacks' or strategies to mitigate this effect. These hacks are to focus on maximizing contributions, optimizing investment portfolios, and minimizing tax liabilities within existing superannuation rules. The article is positioning itself as a guide for individuals to navigate the impending changes.

Young workers under 18 are missing out on $411 million in superannuation contributions each year due to a quirk in the legislation that requires them to work more than 30 hours a week before being paid super. The Super Members Council (SMC) estimates that over 530,000 young workers are affected, with an average annual loss of $780 per worker. Misha Schubert, CEO of SMC, described the law as 'outdated' and said that early contributions to super make a significant difference in retirement savings. Major retailers like Bunnings, Aldi, JB Hi-Fi, and Priceline already pay workers under 18 superannuation regardless of hours worked. The federal government is considering changing the law to mandate super payments for all casual teen workers.

This super fund couldn't beat the cash rate means that a particular Australian superannuation fund has failed to achieve returns higher than the current Reserve Bank of Australia (RBA) cash rate, which is a benchmark for interest rates in the country. This underperformance suggests that the fund's investment strategy or management may be subpar, and it may face scrutiny from regulators and investors. The RBA cash rate has been low for several years, making it challenging for funds to generate returns above this level.

Australian expat Cameron Smith, who has lived in Switzerland for nearly 20 years, discovered $180,000 was missing from his superannuation fund after it was consolidated into a holding account called YourChoiceSuper, operated by Diversa Trustees. The consolidation was facilitated by financial advisor Nizi Bhandari, who was later charged with unlicensed advice and dishonesty offences by ASIC. Smith's case highlights the risks of dormant superannuation funds being exploited, with his money invested in First Guardian, which collapsed for $1.1 billion. Smith's experience began when he tried to withdraw his funds from Diversa, only to find that it had been transferred to a new financial advisor, Ferras Merhi of Venture Egg Financial Services Pty Ltd, who is accused by ASIC of engaging in unconscionable conduct and providing defective statements of advice.

Nearly half of Australians (45%) are unaware of their super fund's investment performance, which could cost them tens of thousands of dollars by retirement. Experts warn that checking one's super fund's performance is a simple task that can make a significant difference, with MLC Super modelling showing a 30-year-old could be more than $200,000 better off at retirement if in a fund delivering an 8% per annum return compared to a 7% return. The warning comes as most super funds report their 2026 financial results, with the average growth fund returning 9.5% over the past 12 months, led by UniSuper's 12.3% return. Annual statements are arriving soon, providing an opportunity for Australians to review their super fund's performance and make informed decisions. With some funds posting double-digit returns, experts urge Aussies to check their own fund's performance and consider switching if necessary.

The Australian headline 'Sounding the shark alarm over superannuation safety' suggests that concerns have been raised about potential risks to members' savings in Australia's superannuation system, with regulators or industry insiders warning of vulnerabilities similar to those exploited by financial planners who engaged in egregious misconduct. This could be related to issues such as inadequate governance, regulatory gaps, or poor oversight. The article implies a sense of urgency and alarm.

A financial adviser has shared an example of how making extra superannuation contributions through salary sacrifice can save $3,480 in tax for someone earning $150K per year. The cap on these contributions is $32,500 this financial year, and the adviser suggests setting up a payroll arrangement to make the most of it. Additionally, moving money from a savings account to a mortgage offset can save $885 per year, and setting up tax deduction records in July can also reduce taxable income.

UniSuper was the top-performing superannuation fund in Australia last financial year, achieving a return of 12.3 per cent. This marks the fourth consecutive year that returns have exceeded 9 per cent, resulting in a cumulative four-year return of 44 per cent for many Australians. The boom in listed technology stocks in both the US and emerging markets contributed to this strong performance. Investment chiefs expect the momentum to continue. The top-performing superannuation funds in the 'growth' category achieved returns as high as 12.3 per cent, with UniSuper leading the way.

The Labor party has backed a motion to mandate superannuation payments for workers under the age of 18, regardless of hours worked. Over half a million young Australians could benefit from this change, which could see their retirement nest eggs boosted by millions. This move follows the government's new Payday Super laws, which repealed sections of the law excluding workers under 18 working fewer than 30 hours per week from being entitled to super guarantee, but then put these exclusions back into law using ministerial discretion powers. Labor voted against a Greens' push in the Senate to stop this exclusion, but Treasurer Jim Chalmers left the door open for the superannuation change. Super Members Council analysis found that under 18s missed out on $405 million in super contributions over the last financial year alone.