Superannuation giant CBUS to create 100,000 Australian jobs
Superannuation giant CBUS has a plan to help rebuild the economy and get Australians back into work when coronavirus shutdowns end.
Coronavirus
Don't miss out on the headlines from Coronavirus. Followed categories will be added to My News.
Exclusive: Superannuation giant CBUS says it will fund the creation of up to 100,000 Australian jobs as it vows to play its part in the post-coronavirus economic rebuild.
CBUS chairman Steve Bracks told News Corp the industry fund remained in good shape despite global sharemarkets plunging and almost 500,000 Australians rushing to access around $4 billion of their superannuation.
He said CBUS, along with the other industry funds which together have around $1 trillion of funds under management, had an important role to play in rebuilding the economy and getting Australians back into work when coronavirus shutdowns ended.
“We will be on the frontline investing in the real economy,’’ he said.
“We will be big investors and we see good opportunities coming up. We will be significant investors in property development … right across Australia.’’
Mr Bracks, the former Labor premier of Victoria, said CBUS, the fund’s construction company CBUS Property, and broader industry fund investment vehicles IFM and ISPT, intended to make big investments in construction, commercial and retail projects.
He said upgrades and improvements were planned at assets owned or part-owned by the funds, including the Melbourne, Gold Coast, Tasmanian and Perth airports, as well as the ports of Brisbane, Botany and Kembla.
IFM also still has a $7 billion bid on the table to build a dedicated tunnel to service a proposed Melbourne Airport rail link.
Mr Bracks said CBUS, the construction industry superannuation fund which had around 759,000 members and $56 billion fund under management before the coronavirus crisis hit, had funded the creation of 95,000 jobs in the past 15 years.
He said while the fund had likely fallen about 10 per cent due to global downturns, the jobs creation would be replicated in coming years, mainly in construction.
“We stress-tested our fund to the global financial downturn plus 30 per cent,’’ he said.
“We have 70 per cent liquidity in the fund going forward. We will be in a strong position coming out of this.’’
A deal was announced last week for CBUS Property to build a $300 million office block for the South Australian Government in central Adelaide, creating 2000 jobs, likely the first of many such projects nationally.
MORE NEWS
Billionaires behind Virgin Australia who won’t bail it out
Perth Airport blocks Virgin aircraft over unpaid debt
How panic spending super has become the new toilet paper
The trap leaving Aussies with less super to access early
Mr Bracks said significant state and federal government stimulus funding would be made available in coming months and years, and the industry funds would seek to be involved in major infrastructure projects.
Ian Silk, CEO of AustralianSuper, said the nation’s largest super fund was already “helping with the next phase of economic growth as the country moves into the post-Covid period.’’
“Superannuation is a natural port of call as companies look to rebuild their balances sheets in the coming months,’’ he said.
“AustralianSuper has already moved to assist companies such as QBE, Ramsay Healthcare and Reece Plumbing that have sought to raise additional capital on the stock market.
“These sorts of investments totalling hundreds of millions of dollars play an important role of boosting the nation’s balance sheet and keeping working Australians in jobs and will help generate the best long-term returns for members in retirement.’’
AustralianSuper has 2.1 million members and more than $180 billion of funds under management.
Originally published as Superannuation giant CBUS to create 100,000 Australian jobs