Infrastructure investment could quadruple, report says

A report by the Allen Consulting Group for the Association of Superannuation Funds of Australia (ASFA) says super funds' infrastructure holdings could rise from about $45 billion today to roughly $200 billion by 2025 — more than a fourfold increase.

The analysis was prepared by the Allen Consulting Group and was commissioned by the Association of Superannuation Funds of Australia (ASFA), which represents Australian super funds and their members.

The report highlights traditional infrastructure assets such as ports, roads and airports as likely targets for increased superannuation investment.

The report points to several drivers: government policy changes, industry mergers that create larger funds, new retirement rules that let members move into retirement without forced asset sales, and budget incentives — all of which make long‑term, unlisted infrastructure assets more attractive.

According to ASFA chief Pauline Vamos, larger merged funds can hold more liquidity and are therefore better able to take on unlisted, long‑term infrastructure investments that smaller funds might struggle to manage.

The article notes a government plan to let members move into retirement more 'seamlessly' without selling assets, and a budget measure providing a $200 million tax break designed to make infrastructure investment more attractive to funds.

The report says lifting employers' mandatory super contribution from 9% to 12% would support fund growth and is estimated to add about 0.33 percentage points to the size of the economy by 2025, which could further bolster infrastructure investment capacity.

The report frames the shift as a move toward more 'real investments' that can diversify away from sharemarket volatility. For members, that could mean super funds holding more long‑term assets like ports and roads — potentially providing diversification benefits, though the article doesn't promise specific returns.