Monies held in the superannuation system should be invested in scientific and technological research and start-up firms to help boost local innovation and keep new ventures within Australia, the Super Members Council (SMC) has stated.
The superannuation body made the call as part of its submission to the 2025 Economic Reform Roundtable, noting under the right policy settings, investments from the retirement income savings system could generate returns for superannuants by allocating capital to those involved in research and development.
The submission stated the use of superannuation money would complement existing venture capital channels, such as the government-run Medical Research Commercialisation Fund and university-linked endowment partnerships that are common in the United States.
SMC chief executive Misha Schubert said the scale of the superannuation system, at $4.3 trillion, meant it should be better connected with innovative firms that could boost investment returns for everyday Australians.
“Australia has shown it can punch above its weight in biotech, medtech, artificial intelligence and quantum – all productivity game changers that could be supercharged – yet we’re seeing too many of our brightest commercialise their innovations overseas because of current barriers for super capital to invest at scale,” Schubert noted.
“It’s time to create a better pathway to match more of the vast pool of capital in Australia’s super system with our nation’s most promising science and start-up entrepreneurs to generate stronger investment returns for Australians with super, boost income and give Australian productivity the shot in the arm it desperately needs.”
As such, the SMC called for the creation of new formal pathways to match super capital with scientists, start-ups and entrepreneurs, and to simplify performance testing and fee disclosures to reduce barriers to investing in new asset classes, while keeping high standards of consumer protection.
The council added increasing investment in private equity from the current level of 6 per cent to 10 per cent of super savings could see $50 billion flow to start-ups and other innovative private companies and boost returns.
Other recommendations made by the SMC include ensuring superannuation tax concessions were better targeted to support low-income workers and reduce reliance on the age pension, as well as to allow super contributions into retirement-phase accounts.
