PM bags sovereign fund

PM bags sovereign fund

PRIME Minister Julia Gillard says Australia does not need a sovereign wealth fund because superannuation is already a trillion-dollar equivalent.

"That's because it's privately managed by thousands of trustees instead of a sovereign wealth fund managed centrally by a Canberra-appointed manager," she will tell a financial services breakfast today.

The government wants to make massive injections into these accounts through raising the super guarantee levy from 9 to 12 per cent but to finance this it needs to pass the minerals resource rent tax.

Treasury estimates that 12 per cent super will mean $10 billion saved each year in pension outlays in 2030.

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