The Financial Services Council (FSC) has tracked a significant rebound in the amount of contributions made to APRA regulated superannuation funds in the December 2012 quarter.

Total contributions for APRA regulated superannuation funds in 2012 were $86.9 billion, up 4.7 per cent on 2011. While employer contributions were $4.1 billion (6.2 per cent) higher than in 2011, discretionary contributions were $200 million lower (1.3 per cent).

“The rebound in contributions in December reflects sustained growth in equity markets, strong returns to superannuation funds in 2012 and an absence of negative news out of Europe and the United States,” FSC chief economist James Bond.

“However, other recoveries in discretionary contributions following the recent financial crisis have been short lived – often lasting only one or two quarters. This market sensitivity will continue.”

Discretionary contributions to superannuation funds for the December 2012 quarter recorded their first positive growth since September 2011.

“The rebound in discretionary contributions in the December quarter after a year of declines is a welcome sign of improved confidence in superannuation,” Mr Bond said.

However, Mr Bond said the 5.5 per cent rise in employer contributions on the December quarter 2011 is not as strong as the double digit growth recorded in the five years prior to the GFC.