Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

I thank Senator Watson for that question and acknowledge his very long-term interest and his expertise in funds management and superannuation. Yesterday was quite a significant day because the ABS released figures showing that in the March quarter the total value of funds under management in Australia exceeded $1 trillion for the first time ever in our country’s history. That is $1,000 billion, for the uninitiated. Just four years ago the funds under management were only $649 billion, so there has been a 55 per cent increase since 2002.

It is a fact that Australia, as a result of this, has the fourth largest managed funds industry in the world, which, given that we only have the 15th largest economy and we account for only 1½ per cent of world GDP, is a very significant factor. There are a number of reasons why we are in this position—