In March last year, total superannuation assets stood at $3.4 trillion.

This growth was driven, in part, by the superannuation guarantee (SG) increase to 10.5 per cent from 1 July 2022 and a strong labour market, APRA said.

Meanwhile, contributions rose by 11.3 per cent to $159 billion in the year ending in March 2023.

Member contributions increased over the year by some 7.5 per cent to $40.5 billion and employer contributions saw a larger margin, growing by 12.6 per cent to $118.6 billion.

The upward trend in employer contributions was likely to continue following the implementation of payday super as part of the 2023 federal budget. As part of the measure, employers would be required to pay employees’ superannuation at the same time as their salary and wages and would be formally implemented in July 2026, though super bodies urged employers to implement it earlier.

In 2019–2020, the Australian Taxation Office (ATO) had estimated $3.4 billion worth of super, or almost 5 per cent of the total expected SG contributions for the year, had gone unpaid.

Additionally, APRA’s Q1 2023 data found benefit payments had witnessed an increase of 13.8 per cent to reach $95.8 billion. Of this, pension payments grew by 6.1 per cent to $42.3 billion and lump sum payments grew by 20.8 per cent to $53.5 billion.

“Both increases are in-line with longer term trends due to a maturing superannuation system and ageing population,” APRA said.