The House Standing Committee on Agriculture and Water Resources has tabled its report today into the issue of superannuation fund investment in Australian agriculture.
Committee Chair, Rick Wilson MP, emphasised that that the Committee's consideration of this issue since May has highlighted that the lack of superannuation investment in the sector is not a black and white issue.
"The level of investment in Australian agriculture by domestic super funds is low, and the Committee received consistent evidence that regulation was not the primary barrier preventing this investment", Mr Wilson noted, "a range of factors all contribute – from the liquidity requirements of super funds, to the impact of climate and inconsistent knowledge of the sector".
The Committee made four recommendations, aimed at improving the data available on the agriculture sector and making it more suitable to investment analysis; revisiting the potential negative impact of foreign investment rules and tax burdens; expanding publicly available information about the sector and its investment suitability, both domestically and internationally; and establishing a superannuation and agriculture sector working group to stimulate mutual understanding of areas for improvement and investment.
"Ultimately, better information and awareness of the benefits of Australian agriculture as a steady and suitable investment target, will improve investment from both superannuation funds and the wider investment community. This can only lead to best practice agriculture and a sustainable market into the future." Mr Wilson said.
