Latest news with #SuperRatings
Sydney Morning Herald
08-07-2025
- Business
- Sydney Morning Herald
Forget the Midas touch. Investing now requires diamond hands
Firstly, the mandatory superannuation guarantee contributions that an employer must make on your behalf rose to 12 per cent on July 1. So more is already automatically going into the market for you this financial year. But you can do better than that. Secondly, increase your contributions with a before-tax top up and swap your marginal tax rate for only the 15 per cent contributions tax. Simply talk to your employer about making a salary sacrifice of a couple of per cent this year – or if you are self-employed, you can achieve the same thing with an after-tax contribution for which you get a tax deduction via an 'intent to claim' form. In either case, far more will go into your fund than you will lose from your pay. (Note these contributions remain capped at $30,000 a year, including your employer's, although you may be able to mop up unused allowances going back four years.) Thirdly, claim the free up-to $500 contribution that's available from the government for people on incomes in 2025-26 of $62,488. All you need to do is pay in $1000 after tax in a year – that's just $19.25 a week. If your total income is below $47,488, the government will match your contribution at the rate of 50 per cent, up to that maximum of $500. Loading Fourthly, a higher earning spouse could pay in $3000 after tax to net themselves a $540 tax offset, which is a straight-up discount off your tax bill so essentially $540 back in your hand (which you could also invest/put into super). All four of these moves could make a massive difference to your future. A 10 per cent median super return this year is large, but it is the third double-digit return year that balanced funds have recorded over the past decade. Indeed, since the bottom of the GFC in 2008-09, SuperRatings says funds have delivered positive returns in 14 out of the past 16 years. And remember that on the credit crack up, the ASX/S&P 200 index of Australia's leading shares sank by a horrific almost-half. Then, in 2020, there was a small global pandemic, which wiped 35 per cent off values for what turned out to be only a short time. But that financial year, the median balanced super fund made almost 18 per cent. And fast forward to today and – post the initial Trump tariff turmoil just three months ago – the market is trading at record highs. Since April, those share investors who hung on for the stomach-churning ride have made some 17 per cent. With US tariffs still uncertain and ongoing geopolitical threats, market volatility is unlikely to be over. But such conditions – in fact – represent an opportunity for investors, particular if you can invest for less via super. Provided you do it with diamond hands.
West Australian
03-07-2025
- Business
- West Australian
Super funds return more than 10 per cent again despite rollercoaster financial year
Retirement nest eggs grew more than 10 per cent in the just-completed 2025 financial year, despite a rollercoaster ride that threatened to leave superannuants underwater just three months ago. Numbers released by superannuation research firm SuperRatings on Thursday show the median balanced fund - one with between 60 per cent and 70 per cent of balances exposed to shares and other growth assets - is estimated to have returned 10.1 per cent in the year to June 30. The growth has been attributed to the big US tech stocks and Australia's banks, notably Commonwealth Bank and represents the third double-digit return for Australian superannuation funds in the past 10 years. It's consistent with the 10 per cent rise in the S&P-ASX200 for the 12 month period. However, returns could have been even better if not for US President Donald Trump's tariffs, which hammered investor confidence and sparked savage sell-offs on global equity markets in the second half. The first seven months of the financial year to 31 January saw super funds delivering an 8 per cent return. However, that had fallen to just 0.8 per cent by early April after the announcement of the 'Liberation Day' levies on US trading partners. 'We saw exceptional volatility in returns over the year, particularly following the announcement of US tariffs in early 2025,' SuperRatings executive director Kirby Rappell said. 'However, the benefit of staying the course was once again proven as a quick rebound has resulted in the third double digit return year over the past decade.' More to come.
Sydney Morning Herald
22-06-2025
- Business
- Sydney Morning Herald
‘Astonishing result': How super funds are faring amid Trump tariff volatility
One week out from the end of the financial year, analysts are predicting a strong annual performance for superannuation funds despite a year of market volatility caused by President Donald Trump's trade war and escalating conflict in the Middle East, including US involvement in Iran. Analysts from Chant West and SuperRatings predict Australian super funds, which manage a combined $4.2 trillion of members' money, are set to record positive returns for the 2024-25 financial year, the third year of growth in a row. Chant West has forecast that the median growth fund return for the year ending June 30 will be about 9 per cent, which is consistent with 9.1 per cent and 9.2 per cent for the financial years before this one. Figures from May showed returns were 2.7 per cent for that month. Chant West senior investment research manager Mano Mohankumar said the predicted results were a welcome surprise, given it has been a volatile year on financial markets. 'A final return close to 9 per cent would be an astonishing result in light of the volatility we've seen this past year. The [2024-45 financial year] experience highlights the importance of remaining patient and not getting distracted by short-term noise,' Mohankumar said. Loading Although super funds are performing within their typical long-term risk objectives of one year of negative returns in every five years on average (instead, there has been one every 6.4 years), global events causing market volatility have harmed super fund performance in the past. Examples include negative returns in 2008 and 2009 due to the global financial crisis and in 2020 due to the COVID-19 pandemic. Major super funds, which are heavily invested in shares, were hit hard when markets tanked in April in response to Trump's 'Liberation Day' tariffs. But markets have recovered since then in response to Trump pausing his plans. The ASX 200 is up almost 10 per cent in the past year and Wall Street's S&P500 has risen 9.5 per cent. Even so, analysts have predicted more volatility ahead due to uncertainty over Trump's policies and geopolitical risks, including the escalating conflict in the Middle East.
The Age
22-06-2025
- Business
- The Age
‘Astonishing result': How super funds are faring amid Trump tariff volatility
One week out from the end of the financial year, analysts are predicting a strong annual performance for superannuation funds despite a year of market volatility caused by President Donald Trump's trade war and escalating conflict in the Middle East, including US involvement in Iran. Analysts from Chant West and SuperRatings predict Australian super funds, which manage a combined $4.2 trillion of members' money, are set to record positive returns for the 2024-25 financial year, the third year of growth in a row. Chant West has forecast that the median growth fund return for the year ending June 30 will be about 9 per cent, which is consistent with 9.1 per cent and 9.2 per cent for the financial years before this one. Figures from May showed returns were 2.7 per cent for that month. Chant West senior investment research manager Mano Mohankumar said the predicted results were a welcome surprise, given it has been a volatile year on financial markets. 'A final return close to 9 per cent would be an astonishing result in light of the volatility we've seen this past year. The [2024-45 financial year] experience highlights the importance of remaining patient and not getting distracted by short-term noise,' Mohankumar said. Loading Although super funds are performing within their typical long-term risk objectives of one year of negative returns in every five years on average (instead, there has been one every 6.4 years), global events causing market volatility have harmed super fund performance in the past. Examples include negative returns in 2008 and 2009 due to the global financial crisis and in 2020 due to the COVID-19 pandemic. Major super funds, which are heavily invested in shares, were hit hard when markets tanked in April in response to Trump's 'Liberation Day' tariffs. But markets have recovered since then in response to Trump pausing his plans. The ASX 200 is up almost 10 per cent in the past year and Wall Street's S&P500 has risen 9.5 per cent. Even so, analysts have predicted more volatility ahead due to uncertainty over Trump's policies and geopolitical risks, including the escalating conflict in the Middle East.
News.com.au
21-06-2025
- Business
- News.com.au
Melbourne homebuyers missing out on super hack
A growing number of young Melbourne homebuyers are using a little-known super hack to beat the property market — but hundreds of thousands of others are still missing out. Finder analysis of SuperRatings data has revealed that in 190 Melbourne suburbs, house prices failed to keep pace with the average 5.7 per cent annual return delivered by top-performing superannuation funds over the past decade. That means savvy buyers who contributed voluntarily into super rather than racing into the property market in those suburbs could have ended up ahead, growing a deposit faster than prices climbed. These suburbs include a mix of prestige pockets such as Docklands, Carlton, Parkville and St Kilda West, as well as outer-fringe areas like Cranbourne South, where growth has lagged super returns. In contrast, more than 100 other suburbs, particularly in Melbourne's booming outer west and north, outpaced super fund performance. Despite the clear financial benefits, the First Home Super Saver Scheme (FHSSS), which allows Australians to grow a deposit inside super, remains significantly underused. According to the latest Australian Taxation Office data, just 27,000 Australians have accessed the scheme since it began, withdrawing a combined $370m in voluntary contributions. Yet nearly half of those — 16,500 — were Victorian buyers, indicating strong uptake in the state. However, Australian Bureau of Statistics figures show there were more than 231,000 new loans issued to first-home buyers in Victoria between the 2018 and 2024 financial years, suggesting almost 93 per cent of eligible buyers never used the scheme. Super Members Council chief executive Misha Schubert said younger Australians should not have to choose between homeownership and a secure retirement. 'They deserve the same opportunities as previous generations to have both a home and strong retirement savings,' Ms Schubert said. 'As a result of Super Guarantee rate rises from 9 to 12 per cent over the past decade, the average 30-year-old today will be more than $130,000 better off in retirement. 'That's why protecting the core of super is so important.' Under the scheme, eligible first-home buyers can contribute up to $15,000 per year and a total of $50,000 in voluntary super contributions — which can later be withdrawn to use as a house deposit. The strategy is particularly appealing for disciplined savers, as it takes advantage of concessional tax treatment and compound growth within a super fund. Experts say it could be a powerful way to close the deposit gap for many young Australians locked out of their preferred suburbs. Smart Lending managing director Melissa Gielnik said the scheme remained an under-utilised financial tool, especially for buyers in their 20s and 30s. 'In a lot of cases, the First Home Super Saver Scheme can deliver a better outcome than a standard savings account or term deposit, and it's a huge help in a rising market,' Ms Gielnik said. OpenCorp chief executive Cam McLellan said while super performance had been solid, property still offered unique advantages that couldn't be overlooked. 'Super returns sound solid, but property has a massive advantage with leverage,' Mr McLellan said. 'With a 20 per cent deposit, you control the full value of the asset, and that means better real-world outcomes — especially when you factor in rental income and tax benefits.' Mr McLellan said successful investors often used a blend of both strategies, depending on their income and long-term goals. 'Some reduce their super contributions while building a property portfolio,' he said. 'Others use a self-managed super fund to buy property inside super. The smart ones use both.' M R Advocacy director Madeleine Roberts said more younger buyers were also turning to rentvesting — renting in their preferred lifestyle locations while investing in more affordable growth suburbs. 'They're realising it's a smart way to get ahead without giving up lifestyle,' Ms Roberts said. 'We're seeing savvy buyers take a strategic approach. 'They're arming themselves with the right information and using it to their advantage.' She said that while super could be a useful long-term growth tool, the right property purchase in the right location had the potential to outperform in real dollar terms, particularly when timed well. 'Smart property decisions can absolutely beat super, even in the short term,' Ms Roberts said. 'But it all comes down to timing and knowing where to buy. 'Sometimes the best move is to buy, wait for it to mature in value, and then reinvest somewhere else.' With Melbourne's housing market showing signs of recovery after a turbulent few years, experts say the combination of rising super balances, accessible government schemes, and flexible strategies like rentvesting could redefine the first-home buyer experience. It helps close the affordability gap for a generation of buyers priced out of the traditional path to homeownership. Ms Schubert said one of the scheme's biggest strengths was that it didn't require buyers to compromise their long-term financial wellbeing. 'It doesn't damage the safe deposit box that protects their employer super contributions, which they will need to deliver regular income to live on in retirement,' she said. 'It's a win-win, and we'd love to see more young Australians taking advantage of it.' Additional reporting by Nathan Mawby Disclaimer: OpenCorp does not provide financial advice about SMSFs or superannuation. Always consult a licensed financial adviser before making decisions regarding your super or establishing an SMSF. Melbourne suburbs where super outperformed houses Suburb Property Type 10-Year Property Return % Docklands H -1 Parkville H -0.3 Cranbourne South H 0.2 Werribee South H 0.3 Nar Nar Goon North H 0.9 Middle Park H 1.2 Carlton H 1.3 St Kilda West H 1.6 Toorak H 2.4 Armadale H 2.4 South Melbourne H 2.5 Williamstown North H 2.5 Glen Huntly H 2.6 Flemington H 2.6 Fitzroy North H 2.7 Box Hill H 2.8 Richmond H 2.8 Malvern East H 2.9 Cremorne H 2.9 Ashburton H 3 Prahran H 3 Elsternwick H 3.1 Princes Hill H 3.1 Mont Albert H 3.2 South Yarra H 3.2 St Kilda H 3.2 Bulleen H 3.2 Kew H 3.3 Mont Albert North H 3.3 Balaclava H 3.3 Windsor H 3.3 West Footscray H 3.3 Heidelberg Heights H 3.3 Caulfield North H 3.4 Caulfield South H 3.4 Doncaster H 3.4 Brooklyn H 3.4 Ripponlea H 3.5 Port Melbourne H 3.5 Maidstone H 3.5 Box Hill South H 3.6 Chadstone H 3.6 Maribyrnong H 3.6 Balwyn North H 3.7 Oakleigh East H 3.7 Collingwood H 3.7 Kensington H 3.7 Camberwell H 3.8 Glen Iris H 3.8 St Kilda East H 3.8 Belgrave South H 3.8 Seddon H 3.8 Footscray H 3.8 McKinnon H 3.9 Alphington H 3.9 Box Hill North H 3.9 Heidelberg H 3.9 Oakleigh H 3.9 Essendon North H 3.9 Heatherton H 3.9 Mount Dandenong H 3.9 Elwood H 4 Ivanhoe H 4 Fitzroy H 4 West Melbourne H 4 Balwyn H 4.1 Hawthorn East H 4.1 Surrey Hills H 4.1 Albert Park H 4.1 Templestowe H 4.1 Templestowe Lower H 4.1 Braybrook H 4.1 Bentleigh H 4.2 Mount Waverley H 4.2 Blackburn H 4.2 Williamstown H 4.2 Clifton Hill H 4.2 Burwood H 4.2 Ashwood H 4.2 Ascot Vale H 4.2 Forest Hill H 4.2 Yarraville H 4.2 Watsonia North H 4.2 Bundoora H 4.2 Springvale H 4.2 Brighton East H 4.3 Glen Waverley H 4.3 Burwood East H 4.3 Moorabbin H 4.3 Heathmont H 4.3 Knoxfield H 4.3 Keilor Park H 4.3 Warrandyte H 4.4 North Melbourne H 4.4 Blackburn North H 4.4 Abbotsford H 4.4 Viewbank H 4.4 Nunawading H 4.4 Pascoe Vale H 4.4 Croydon North H 4.4 Attwood H 4.4 Westmeadows H 4.4 Malvern H 4.5 Ormond H 4.5 Moonee Ponds H 4.5 Hughesdale H 4.5 Mitcham H 4.5 Huntingdale H 4.5 Bonbeach H 4.5 Ringwood H 4.5 Airport West H 4.5 Bayswater H 4.5 Caulfield H 4.6 Murrumbeena H 4.6 Ringwood East H 4.6 Altona North H 4.6 Avonsleigh H 4.6 Canterbury H 4.7 Brighton H 4.7 Kew East H 4.7 Carnegie H 4.7 Blackburn South H 4.7 Mentone H 4.7 Brunswick West H 4.7 Brunswick H 4.7 Macleod H 4.7 Kingsbury H 4.7 Eaglemont H 4.8 Ivanhoe East H 4.8 Sandringham H 4.8 Carlton North H 4.8 Donvale H 4.8 Hampton East H 4.8 Wheelers Hill H 4.8 Thornbury H 4.8 Coburg H 4.8 Rowville H 4.8 Bellfield H 4.8 Scoresby H 4.8 Gowanbrae H 4.8 New Gisborne H 4.8 Sunshine H 4.8 Brookfield H 4.8 Vermont H 4.9 Wantirna H 4.9 Clarinda H 4.9 Clayton South H 4.9 Sassafras H 4.9 Reservoir H 4.9 Croydon South H 4.9 Greenvale H 4.9 Boronia H 4.9 Caroline Springs H 4.9 Fairfield H 5 Brunswick East H 5 Newport H 5 Cheltenham H 5 Patterson Lakes H 5 Oakleigh South H 5 Yallambie H 5 Coburg North H 5 Wattle Glen H 5 Cairnlea H 5 The Basin H 5 Springvale South H 5 Glenroy H 5 Fawkner H 5 Broadmeadows H 5 Hampton H 5.1 Niddrie H 5.1 Clayton H 5.1 Seaholme H 5.1 South Kingsville H 5.1 Oak Park H 5.1 Keilor East H 5.1 Ferntree Gully H 5.1 Selby H 5.1 Eumemmerring H 5.1 Laverton H 5.1 Bentleigh East H 5.2 Parkdale H 5.2 Vermont South H 5.2 Mordialloc H 5.2 Ringwood North H 5.2 Preston H 5.2 Mulgrave H 5.2 Strathmore Heights H 5.2 Briar Hill H 5.2 Avondale Heights H 5.2 Croydon H 5.2 Hadfield H 5.2 Sunshine North H 5.2 Deepdene H 5.3 East Melbourne H 5.3 Black Rock H 5.3 Beaumaris H 5.3 Northcote H 5.3 Doncaster East H 5.3 Highett H 5.3 Rosanna H 5.3 Pascoe Vale South H 5.3 Greensborough H 5.3 Watsonia H 5.3 Taylors Hill H 5.3 Kalorama H 5.3 Noble Park H 5.3 Burnside Heights H 5.3 Roxburgh Park H 5.3 Tarneit H 5.3 Chelsea H 5.4 Carrum H 5.4 Albion H 5.4 Dandenong H 5.4 Altona Meadows H 5.4 Hawthorn H 5.5 Essendon H 5.5 Eltham North H 5.5 Botanic Ridge H 5.5 Chirnside Park H 5.5 Lilydale H 5.5 Mooroolbark H 5.5 Lynbrook H 5.5 Sunshine West H 5.5 Wallan H 5.5 Bacchus Marsh H 5.5 Plenty H 5.6 Kingsville H 5.6 Eltham H 5.6 Notting Hill H 5.6 Montmorency H 5.6 Upper Ferntree Gully H 5.6 Epping H 5.6 St Albans H 5.6 Melbourne suburbs where houses outperformed super Suburb Property Type 10-Year Property Return % Cobblebank H 14.6 Aintree H 14 Mickleham H 13.5 Weir Views H 12.6 Portsea H 11.3 Red Hill H 11.3 Wesburn H 10.7 Fraser Rise H 10.7 Bittern H 10.1 Cannons Creek H 10.1 St Andrews Beach H 9.7 Diggers Rest H 9.3 Kinglake H 9.2 Cape Schanck H 9.1 Harkaway H 9 Wandong H 8.8 Lang Lang H 8.8 Officer H 8.6 Mount Macedon H 8.3 Melton South H 8.3 Sorrento H 8.2 Pakenham Upper H 8.2 Balnarring H 8.2 Yarrambat H 8.1 Blairgowrie H 8.1 Frankston North H 8.1 Millgrove H 8.1 Safety Beach H 8 Nyora H 8 Baxter H 8 Cranbourne West H 8 Rockbank H 8 McCrae H 7.9 Kinglake West H 7.9 East Warburton H 7.9 Fingal H 7.8 Crib Point H 7.8 Belgrave Heights H 7.7 Gembrook H 7.7 Tyabb H 7.6 Launching Place H 7.6 Clyde North H 7.6 Junction Village H 7.6 Essendon West H 7.5 Somerville H 7.5 Mount Martha H 7.4 Frankston South H 7.4 Carrum Downs H 7.4 Devon Meadows H 7.3 Narre Warren North H 7.2 Seville East H 7.2 Warburton H 7.2 Gruyere H 7.1 North Warrandyte H 7.1 Hurstbridge H 7.1 Rye H 7.1 Tootgarook H 7.1 Melton H 7.1 Balnarring Beach H 7 Mount Eliza H 7 Diamond Creek H 7 Keilor Lodge H 7 Burnside H 7 Cranbourne North H 7 Beaconsfield Upper H 6.9 Warranwood H 6.9 Langwarrin H 6.9 Garfield H 6.9 Edithvale H 6.8 Ferny Creek H 6.8 Dromana H 6.8 Romsey H 6.8 Eynesbury H 6.8 Yarra Junction H 6.8 Hampton Park H 6.8 Cranbourne H 6.8 Werribee H 6.8 Kurunjang H 6.8 Frankston H 6.7 Capel Sound H 6.7 Woori Yallock H 6.7 Hastings H 6.7 Maddingley H 6.7 Wyndham Vale H 6.7 Coolaroo H 6.7 Lower Plenty H 6.6 Kilsyth South H 6.6 Macedon H 6.6 Keysborough H 6.6 Seville H 6.6 Rosebud H 6.6 Wollert H 6.6 Koo Wee Rup H 6.6 Research H 6.5 Lysterfield H 6.5 Aspendale Gardens H 6.5 Emerald H 6.5 Wandin North H 6.5 Mount Evelyn H 6.5 Coldstream H 6.5 Healesville H 6.5 Skye H 6.5 Narre Warren H 6.5 Sunbury H 6.5 Doveton H 6.5 Strathmore H 6.4 Wonga Park H 6.4 Keilor H 6.4 Sandhurst H 6.4 Gisborne H 6.4 Williams Landing H 6.4 Belgrave H 6.4 Albanvale H 6.4 St Helena H 6.3 Pearcedale H 6.3 Montrose H 6.3 Heathcote Junction H 6.3 Mill Park H 6.3 Hallam H 6.3 Blind Bight H 6.3 Pakenham H 6.3 Kings Park H 6.3 Dallas H 6.3 Melton West H 6.3 Aberfeldie H 6.2 Mornington H 6.2 Lyndhurst H 6.2 Narre Warren South H 6.2 Keilor Downs H 6.2 Mernda H 6.2 Hoppers Crossing H 6.2 Meadow Heights H 6.2 Longwarry H 6.2 Lysterfield South H 6.1 Altona H 6.1 Dingley Village H 6.1 Olinda H 6.1 Beaconsfield H 6.1 Taylors Lakes H 6.1 Yarra Glen H 6.1 Berwick H 6.1 Doreen H 6.1 Clyde H 6.1 Deer Park H 6.1 Truganina H 6.1 Badger Creek H 6.1 Somers H 6 Spotswood H 6 Tecoma H 6 Monbulk H 6 Seaford H 6 Hillside H 6 Noble Park North H 6 Seabrook H 6 Delahey H 6 Ardeer H 6 Darley H 6 Kallista H 5.9 Chelsea Heights H 5.9 Bayswater North H 5.9 Endeavour Hills H 5.9 Bunyip H 5.9 Thomastown H 5.9 Craigieburn H 5.9 Croydon Hills H 5.8 Riddells Creek H 5.8 Silvan H 5.8 Heidelberg West H 5.8 Dandenong North H 5.8 Gladstone Park H 5.8 Tullamarine H 5.8 Cranbourne East H 5.8 Lalor H 5.8 Campbellfield H 5.8 Park Orchards H 5.7 Waterways H 5.7 Aspendale H 5.7 Wantirna South H 5.7 Upwey H 5.7 Kilsyth H 5.7 Point Cook H 5.7 South Morang H 5.7 Lancefield H 5.7 Whittlesea H 5.7 Kealba H 5.7 Sydenham H 5.7 Beveridge H 5.7 Manor Lakes H 5.7 Jacana H 5.7 Harkness H 5.7
