The West Australian --- Page: 37 : 10 December 2007 Original article by Anne Lampe
LexisNexis Summary
The returns from the cash option of Australian superannuation funds are often much lower than the at-call interest rates of banks. This is because the returns from super funds take into account taxes and other charges, such as management fees. Susan Fairley, a spokeswoman for Australian Super, says the interest rates charged by banks are driven by their need to ensure that they have funds to lend to other customers. One of Australian Super's funds achieved an after-tax return of 5.7 per cent in the year to October 2007. This would have been around 6.6 per cent before tax.
