INDUSTRY SuperFunds will invest tens of billions of dollars in Australia’s economic recovery with the aim to create or support many thousands of jobs in the years ahead.

Not only has the superannuation sector paid out about $10 billion to members who need to access their super now, they plan to invest tens of billions more in Australian business, equities, property and infrastructure, investments that support the economy and drive growth and job creation.

Industry Super Australia chair Greg Combet said, “Our funds have been helping members through the tough times and we stand ready to help get them safely back to work and the economy growing again.

“We’ve got significant funds available and plans to provide capital to solid Australian businesses and bring forward large investments in major projects and essential infrastructure that will create new jobs and sustain many more," he said.

 “We’re determined to play a key role in helping Australia’s economic rebuild, because that gets some members working again and delivers long-term returns for all.”  

Collectively Industry SuperFunds own $80 billion in Australian infrastructure, property, and other assets. One year’s capital expenditure on infrastructure created or supported 46,000 jobs.

Industry Funds have more than $28 billion earmarked to expand their infrastructure and property holdings and to invest in Australian business, driving further jobs growth. This money will fund solar farms at Darwin airport, other airport terminal expansions, rail upgrades, build shopping centres and commercial and residential developments.

With the confidence of stable superannuation policy settings and partnerships with state and federal governments these infrastructure commitments could be just the start.  

Not only do these infrastructure holdings generate jobs – but means that workers, through their super funds, get the profits from the roads, buildings, airports and seaports they built and use daily.

Since the Covid-19 downturn Industry SuperFunds have poured hundreds of millions into the balance sheets of good Australian business, this helps them to rebuild and to expand operations.

Funds have participated in the capital raising for NAB, Reece Plumbing and Ramsay Healthcare.

And there could be billions more to come, at the end of the Global Financial Crisis the superannuation funds provided a significant portion of the $120 billion in capital raised by local businesses.

Industry SuperFunds remain committed to supporting technology start-ups, SME businesses, social housing and aged care, as well as providing finance to the major banks.  

Industry super funds hold a major stake in Australia’s economic life through investments in Australian listed companies – collective owning 10 per cent of the ASX - debt markets, infrastructure, property and the wider financial system.

The super system needs a strong Australian economy to deliver for members, and the economy needs a strong super system to support its recovery. 

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AMAL CLOONEY and Queen's Counsel Geoffrey Robertson OAM will be among the experts to appear before an inquiry tomorrow on whether to impose sanctions upon individuals who commit human rights abuses.

The hearing is part of the Magnitsky Act inquiry is being conducted by the Human Rights Sub-Committee of the Joint Standing Committee on Foreign Affairs, Defence and Trade.

Other expert witnesses will include Lord Neuberger of Abbotsbury representing the High-Level Panel of Legal Experts on Media Freedom, Professor Irwin Cotler and Bill Browder, widely credited with instigating Magnitsky legislation.

The public hearing on Friday, May 15, will take place in Committee Room 2R1, with witnesses via videoconference, and proceedings will be broadcast via www.aph.gov.au/live

Program: Friday May 15, 2020

MILLIONS of Australians are struggling to pay their mortgage and rent, new research by Finder, Australia’s most visited comparison site reveals. 

A recent Finder survey of 1,023 respondents found that 15 percent – equivalent to 2.9 million Australians – are asking for a rent reduction or pause in their mortgage repayments. 

This includes 1.2 million homeowners who have already contacted or plan on contacting their lender regarding a pause in their mortgage repayments.

A further 1.7 million Aussies intend on negotiating cheaper rent with their landlord.

Kate Browne, personal finance expert at Finder, is concerned by the number of Australians only just scraping by. 

“Almost everyone has felt the financial fallout in some way but there are options to help you get back on your feet," Ms Browne said.

“Whether you own your own home or are renting, it’s time to re-evaluate your expenses and see where you can cut down.

“If you have a home loan, a pause in your mortgage payments should be your last resort.” 

While you may be able to hit pause on your mortgage you will have to repay the money later plus more in interest. A mortgage holiday could leave you paying thousands more in interest and possibly extend the length of your loan.

Finder research found that if you were 10 years in on a $500,000 loan with an average variable rate of 3.90 percent, pausing repayments for six months would cost you an extra $11,127 over the remaining 20 years of the loan.

On a $400,000 loan size with an average variable rate of 3.90 percent, you’d pay an extra $8,902 over the remaining 20 years. 

“We would recommend looking into getting a better rate on your home loan first if you are struggling to make your repayments. While a mortgage deferral or holiday sounds appealing in the short term, you need to seriously consider whether you’ll be able to afford this ‘holiday’ in the long run," Ms Browne said.
 
“Refinancing your mortgage could save you enough to avoid having to pause your payments. COVID-19 has hit the economy hard but the silver lining is that home loan interest rates have never been lower.

“If your interest rate doesn’t have a '2' in front of it you need to start shopping around. There are hundreds of dollars to be saved simply by switching.”

Unsurprisingly, younger Australians are feeling the heat the most with one in four (26%) looking for ways to cut housing costs. 

In comparison, only 10 percent of Gen X, and 1 percent of Baby Boomers are looking to their lender or landlord for help.

"During a time of economic uncertainty, Australians should look for ways to cut down their expenses and make sure that they’re getting the best deal on everything from their groceries, to their home loan interest rate," Ms Browne said.

Mpre information on Finder’s coronavirus mortgage support page.

FINDER ADVICE

A PARLIAMENT-first inquiry into 5G mobile technology in Australia tabled its report in the House yesterday.

House of Representatives Communications and the Arts Committee Chair Dr David Gillespie said the inquiry saw the need for 5G to connect Australia and allow for a wave of innovation and opportunities not seen before.

“The Committee heard that Australia has the opportunity to be a 5G world leader," Dr Gillespie saide. "A number of organisations told us that 5G is essential if we are to be a global competitor in food and wine production, entertainment, automated vehicles and IT, among other sectors.

“We also heard that there is a high level of concern among some members of the community who are worried that 5G is a risk to human health," he said.

"The Committee received assurances from Australian Government agencies and researchers that 5G is a safe technology, and the safety standards in place are more than able to make sure that health is not affected when 5G is deployed”.

The Committee has made 14 recommendations, including:

• The speedy allocation of spectrum needed for 5G;
• Reviews of the low impact facilities framework for the 5G environment, and carrier powers and immunities, particularly the timeframes for raising objections;
• Better management of ageing and redundant mobile network infrastructure and equipment;
• A focus on road and transport safety standards, with carriers working alongside state and territory road and transport authorities;
• The installation of multiuser infrastructure, and conducting of 5G trials, in rural and regional areas;
• The Australian Government encourage manufacturing of 5G infrastructure in Australia, with potential partnerships with the United Kingdom, United States of America, New Zealand and Canada;
• The establishment of a 5G R&D Innovation Fund;
• A focus on Cyber Supply Chain Risk Management, including a review of the current legislative arrangements for network and data security for the supply of 5G equipment;
• Better consultation between Australian Government agencies and members of the community concerned about the deployment of 5G;
• A focus on ensuring that the ICT workforce is appropriately skilled, by lifting apprenticeships and working with curriculum-setters;
• Campaigns to increase local government and enterprise awareness of 5G.

Information about the inquiry may be found on the Committee’s webpage.

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