Power Raid
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I should add, I'm pro super for people who can't save or look after their own finances. but it doesn't make sense for anyone that is proactive about managing your own life and retirement.
The future for Super in Aus (not the political playground)
- Thread starter Kwality
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- #77
Compulsory super is Mr Keatings greatest achievement imho, it has served Australia well, but we face a different future post Covid & need to recognise that, not immediately politicise the issue.
Winning an election on giving back the compulsory super contribution to the wage earner, its their money, will provide a real injection to the economy of the 20s, short term gain yes but?
Power Raid
We Exist To Win Premierships
Compulsory super is Mr Keatings greatest achievement imho, it has served Australia well, but we face a different future post Covid & need to recognise that, not immediately politicise the issue.
Winning an election on giving back the compulsory super contribution to the wage earner, its their money, will provide a real injection to the economy of the 20s, short term gain yes but?
Super is designed for "when you need it most". So I don't see why small amounts couldn't be withdrawn now given COVID, as you're allowed to take money out in ordinary times......the only difference is the amount of paperwork and justification. At the end of the day, giving people funds under the dole, job keeper or the pension is just a timing difference.
I would however hold off on the 12% (from 9%) or only increase it 1% every three years, as the impact of COVID will be felt for years.
and yes, compulsory super is Keatings greatest achievement and Keating is my favourite and the best leader (treasurer and PM) this country has had. Australia modernised under his policy changes.
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- #79
I'd be flexible in the post covid era, how flexible I'm not sure. Pre Covid we saw a problem with wages stagnating, it hasnt gone anywhere & pumping more into super would be better spent going into pay packets.
Power Raid
We Exist To Win Premierships
Expect stagnation on wages for a long time and we risk stagflation unless we continue immigration
This last 13 years of leadership will prove costly
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- #81
Even the recognised author of the system we have today has acknowledged the need to revisit the issue 25 years on:
Paul Keating says federal loans must supplement superannuation to fund aged care
Former prime minister says his thinking has changed on aged care funding and he now supports a loan scheme rather than national insurance
Former prime minister says his thinking has changed on aged care funding and he now supports a loan scheme rather than national insurance
Keating, an architect of Australia’s compulsory superannuation system, said a wealthy country like Australia should be able to support people beyond their 80s, but the super scheme alone was no longer enough to do so. Instead, older people should be allowed to borrow against assets, such as property, to fund their care, with the debt to be repaid after their death through the sale of the asset.
Keating told the commission this system would mean some people might miss out on a large inheritance, but it was unfair to expect younger Australians to fund aged care through their taxes, given the rapidly increasing aged population.
“The number of people left in the tax system to support all this is falling,” Keating said. “Is it unreasonable that elderly people rely on assets and accumulations to meet the cost or should it be put to people in the tax system to bear the burden of it?”
Making people pay for their care after their deaths through their assets would “demonstrate to working people that they are part of it”, Keating said. “If we want a more cohesive society, the benefits of market capitalism should be extended to working men and women.”
- Jul 13, 2015
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Even the recognised author of the system we have today has acknowledged the need to revisit the issue 25 years on:
Paul Keating says federal loans must supplement superannuation to fund aged care
Former prime minister says his thinking has changed on aged care funding and he now supports a loan scheme rather than national insurancewww.theguardian.com
Former prime minister says his thinking has changed on aged care funding and he now supports a loan scheme rather than national insurance
Keating, an architect of Australia’s compulsory superannuation system, said a wealthy country like Australia should be able to support people beyond their 80s, but the super scheme alone was no longer enough to do so. Instead, older people should be allowed to borrow against assets, such as property, to fund their care, with the debt to be repaid after their death through the sale of the asset.
Keating told the commission this system would mean some people might miss out on a large inheritance, but it was unfair to expect younger Australians to fund aged care through their taxes, given the rapidly increasing aged population.
“The number of people left in the tax system to support all this is falling,” Keating said. “Is it unreasonable that elderly people rely on assets and accumulations to meet the cost or should it be put to people in the tax system to bear the burden of it?”
Making people pay for their care after their deaths through their assets would “demonstrate to working people that they are part of it”, Keating said. “If we want a more cohesive society, the benefits of market capitalism should be extended to working men and women.”
This has been talked about for a long time. Problem is how it is enforced. Who sets up the sale? Who ensures we dont just sell the house cheap so the govt gets their money back but shafting the family out of their inheritence?
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- #83
Was it discussed with Super?
Together they throw a different slant on whether the wage increase comes as cash in the bank or goes to Super barons who know 'its our money' !!
A Death Tax has battled to get any traction since Syd Negus grabbed a Senate seat in WA in 1971 on an anti inheritance tax platform.
His campaign established a groundswell of public support and Queensland was the first state to abolish inheritance taxes in 1977; the Commonwealth of Australia and other states followed soon after by abolishing their respective inheritance and gift taxes.
Like ALL taxes there are loop holes, but I can see Keatings suggestion getting consideration unless it is totally politicised.
Power Raid
We Exist To Win Premierships
a reverse islamic banking system would work perfectly
FTR I believe islamic banking should be the only banking system legal in Australia for residential property and possibly all property
- Jul 13, 2015
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Its talked about as a part of the age pension. Super is just one part of it.
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- #86
' .....the disclosure by large retail and industry funds has been nothing short of deplorable. Remember, trustees are managing their members’ money, not their own. And those members are entitled to know the remuneration of key executives; marketing expenditures; political donations; sponsorships; payments to unions and industry bodies and related party transactions. '
www.theaustralian.com.au
using-super-to-buy-home-worth-a-new-look/news-story/2f3797a580fa0fd0ff97fbbd4128c832
The increased super should be figured into the financing of new home buyers.
NoCookies | The Australian
The increased super should be figured into the financing of new home buyers.
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- #87
Carpenter Craig Johnson has less than $100,000 in super. He wonders how that happened
Changes announced by the Federal Government intended to punish underperforming super funds may have unintended negative consequences that could leave members worse off.
'Underperformance' on the radar
In last month's budget, the Federal Government announced new rules to force underperforming funds to lift their game, but critics fear they will have negative consequences and actually leave some people worse off.
The Federal Government said fund underperformance and excessive fees were resulting in people getting to retirement without the nest eggs they should have.
"We know that if you are stuck in an underperforming fund, it can cost you tens of thousands of dollars to your retirement savings," Assistant Minister for Superannuation Jane Hume said.
The new measures announced last month include a new online comparison tool and a system to minimise duplicate accounts.
But perhaps the biggest shakeup is a new way of measuring "underperformance" and punishing funds that are found to not be serving their members.
"The danger is that the design of both the test, and the response to what happens when somebody is identified as being an underperforming fund is — there's just not enough sophistication in understanding what could happen."
- Jul 13, 2015
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Carpenter Craig Johnson has less than $100,000 in super. He wonders how that happened
Changes announced by the Federal Government intended to punish underperforming super funds may have unintended negative consequences that could leave members worse off.www.abc.net.au
'Underperformance' on the radar
In last month's budget, the Federal Government announced new rules to force underperforming funds to lift their game, but critics fear they will have negative consequences and actually leave some people worse off.
The Federal Government said fund underperformance and excessive fees were resulting in people getting to retirement without the nest eggs they should have.
"We know that if you are stuck in an underperforming fund, it can cost you tens of thousands of dollars to your retirement savings," Assistant Minister for Superannuation Jane Hume said.
The new measures announced last month include a new online comparison tool and a system to minimise duplicate accounts.
But perhaps the biggest shakeup is a new way of measuring "underperformance" and punishing funds that are found to not be serving their members.
"The danger is that the design of both the test, and the response to what happens when somebody is identified as being an underperforming fund is — there's just not enough sophistication in understanding what could happen."
There is a danger in comparing fees? Does that mean John Wood is a liar?
As for underperforming funds, of course they should be outed. If they are consistently bad people should know and shift their funds elsewhere.
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- #89
The brighter the light shone on Super the better it is for the ordinary worker, e.g
Industry funds canvass three-way advice fee split
Industry funds are urging more clarity from the regulators on what can be delivered via limited and intrafund advice while canvassing the ability to bill members in three component parts.
www.moneymanagement.com.au
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- #90
The case for home ownership in the Super debate:
'One of the reasons home ownership is so important — and there are many, including the social capital that goes with people owning their own homes — is that the best defence against poverty in old age is owning your own home.
Even with the support of the Age Pension and rent assistance, the picture is clear: those who struggle the most to make ends meet in retirement are renters in the private sector. The Retirement Income Review released last year made clear higher rent assistance would make no meaningful difference to this outcome.'
www.theaustralian.com.au
This is the sharp end of the Superannuation policy in the Baby Boomer era that will be with us until 2030+.
Dont entrench this scenario for future generations.
'One of the reasons home ownership is so important — and there are many, including the social capital that goes with people owning their own homes — is that the best defence against poverty in old age is owning your own home.
Even with the support of the Age Pension and rent assistance, the picture is clear: those who struggle the most to make ends meet in retirement are renters in the private sector. The Retirement Income Review released last year made clear higher rent assistance would make no meaningful difference to this outcome.'
NoCookies | The Australian
This is the sharp end of the Superannuation policy in the Baby Boomer era that will be with us until 2030+.
Dont entrench this scenario for future generations.
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- #91
The gnashing of teeth from the big super funds over members being allowed to access their funds is exposed as self interest as the draw down is less than originally budgeted:
www.theaustralian.com.au
'Australians withdrew $36.4 billion of their superannuation savings to help them through the COVID-19 - less than originally anticipated.
The close-to-final figures released by the Australian Prudential Regulatory Authority for the early release of super program show withdrawals tailing off before it ended on December 31, after high-levels of applications earlier in the scheme’s life.
The program, which ran from April, was originally forecast by Treasury to prompt at least $42bn in outflows from super funds.'
The Morrison Government must convene an inter party committee to investigate our current laws, where the benefit is going, and alternatives within the broad picture of the 9+% of workers pay not going into the pay packet.
It has to be inter party because the vested interests on both sides of politics would love to turn this into a partisan squabble to drown out real consideration.
NoCookies | The Australian
'Australians withdrew $36.4 billion of their superannuation savings to help them through the COVID-19 - less than originally anticipated.
The close-to-final figures released by the Australian Prudential Regulatory Authority for the early release of super program show withdrawals tailing off before it ended on December 31, after high-levels of applications earlier in the scheme’s life.
The program, which ran from April, was originally forecast by Treasury to prompt at least $42bn in outflows from super funds.'
The Morrison Government must convene an inter party committee to investigate our current laws, where the benefit is going, and alternatives within the broad picture of the 9+% of workers pay not going into the pay packet.
It has to be inter party because the vested interests on both sides of politics would love to turn this into a partisan squabble to drown out real consideration.
- Thread starter
- #92
Some of Mr Keatings views on the suggestions of super being used to help bridge the deposit gap, i.e using your own money to buy your own home & avoid the rent trap (a view I support).
'Super not for home buying
Mr Keating strongly objected to the idea that people should be able to access some of their superannuation savings to help buy a home.
He said allowing people access to more money for a deposit on their home would only push up the price of housing further.
“If you give them money for housing, it will only push up the price of housing.”
He said the problem of housing affordability in Australia was one of lack of supply.
He said superannuation funds could help relieve this by investing in public rental housing and built to rent housing developments.
“Super funds can create a whole new asset class in built to rent and can fund public rental housing,” he said.
He said investing in build to rent housing projects had the potential to deliver solid investment returns for the super funds as well as taking pressure off the housing market.
Mr Keating said increasing the superannuation guarantee levy to 12 per cent was important in ensuring that people had sufficient savings to retire on without having to rely on the government pension.'
www.theaustralian.com.au
'Super not for home buying
Mr Keating strongly objected to the idea that people should be able to access some of their superannuation savings to help buy a home.
He said allowing people access to more money for a deposit on their home would only push up the price of housing further.
“If you give them money for housing, it will only push up the price of housing.”
He said the problem of housing affordability in Australia was one of lack of supply.
He said superannuation funds could help relieve this by investing in public rental housing and built to rent housing developments.
“Super funds can create a whole new asset class in built to rent and can fund public rental housing,” he said.
He said investing in build to rent housing projects had the potential to deliver solid investment returns for the super funds as well as taking pressure off the housing market.
Mr Keating said increasing the superannuation guarantee levy to 12 per cent was important in ensuring that people had sufficient savings to retire on without having to rely on the government pension.'
NoCookies | The Australian
CakeEater
Brownlow Medallist
Cant see Super increasing this year.
Ned_Flanders
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the push to actually make it accessible is mounting
CakeEater
Brownlow Medallist
Define accessible?
Ned_Flanders
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you can tap into at any time to fund your home deposit
- Thread starter
- #97
Super funds have been working for themselves when they should have been working for us. That's about to change (theconversation.com)
Should result in more of the investment return on YOUR dollars appearing in your Super balance, putting a lid on the gravy train that is management of YOUR dollars.
Even the ABCs Peter Martin is on board:
Super funds have been working for themselves when they should have been working for us. That's about to change - ABC News
Should result in more of the investment return on YOUR dollars appearing in your Super balance, putting a lid on the gravy train that is management of YOUR dollars.
Even the ABCs Peter Martin is on board:
Super funds have been working for themselves when they should have been working for us. That's about to change - ABC News
Good to see the industry funds taking on the govt over proposed changes
After the last election they really have no mandate to make changes - in fact they have a negative mandate.
Let them take their changes to the next election
After the last election they really have no mandate to make changes - in fact they have a negative mandate.
Let them take their changes to the next election
I also find it amazing that people could fraudulently access other peoples super in the recent relaxation. I have a few hundred in aus super and while I get letters regularly to address it, when I do so they put blocks because they have my DOB wrong on the account.
So disputing my identity but they keep sending me letters?
So disputing my identity but they keep sending me letters?
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