Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Hansard source

There are two points. If we look at the Future Fund interest, I think we have to bear in mind—and I have not gone to the Future Fund and sought a response; I will attempt to do this; it may be the case; I do not want to mislead—that the asset base and the investments of the Future Fund are changing over time. It started off all in cash and then was placed into the markets. That was fortuitous for the Future Fund for the obvious reason that they are predominantly in cash at a time of market downturn, so they are receiving. Their performance is obviously better than if the funds had all been placed in the markets and equities in the last year, given what has happened to the markets. As I understand it, that mix will change over time. It converts from predominantly cash and diversifies into equities because, over the longer term, equities—it is argued, and I think reasonably so—give a higher return than if it were all in cash. It is a diversified portfolio. That may be the explanation. I will check with the Future Fund.

In terms of the netting, we have to agree to disagree. You have a view. I have indicated twice now why the netting occurs and the reason for it and that it occurred under the previous government. It is the way in which the netting is carried out in terms of interest receipts and interest payments.