Super Shake Up Wins Support as Budget Savings Spruiked

The proposed changes to Australia's superannuation performance test aim to encourage investment in housing and venture capital by adjusting benchmarks. This could shift asset allocation within the A$4.5 trillion super fund pool, potentially increasing flows into real estate and private equity. The commercial mechanism is regulatory: altering the performance test may reduce the penalty for investing in illiquid assets, thereby expanding capital available for domestic infrastructure and housing. However, the impact is indirect and depends on implementation details not yet specified. The budget savings signal fiscal tightening, which may dampen economic growth but has no direct commodity or supply-chain effect.