Gotti celebrates aged succubus

ScreenHunter_90 Oct. 24 08.28

By Leith van Onselen

It hasn’t taken long for Robert Gottliebsen (“Gotti”) to endorse the Coalition Government’s abandonment of the former Labor Government’s planned changes to superannuation, hailing it as a win for older Australians:

The Australia superannuation movement has had the most enormous victory. Any person aged over 60 who classifies their super funds as being in “pension mode” will have no tax levied on their investment income. They will be required to pay a minimum pension that rises with age, but that pension is also tax-free…

The super changes that Peter Costello introduced have now survived their first challenge…

There will be more challenges, but as each year goes by, it will become harder and harder because the number of people is set to rise sharply with the ageing population. Accordingly, older people will have a bigger influence on who governs the country…

[The changes] show just how serious the Abbott government is about doing what’s right by Australia’s growing pool of superannuants.

While the changes might be good for cashed-up oldies like Gotti, they are a major blow to lower income Australians who will no longer receive any tax concessions from contributing to super, with the 15% flat tax system ensuring the lion’s share of concessions flow to upper income earners – precisely those that are least likely to need the aged pension.

As a result, the Coalition (including the Howard-Costello Government before it) has all but ensured that the superannuation system imposes a great burden on the Budget via the huge concessions granted to higher income earners, whilst doing bugger all to relieve the strain on the aged pension.

It would be nice if Gotti could acknowledge the broader national interest for once in his life, as well as the growing burden these types of policies place on younger, working Australians.

[email protected]

www.twitter.com/Leithvo

Unconventional Economist

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

Latest posts by Unconventional Economist (see all)

Comments

  1. hailing it as a win for older Australians:

    Why do older Australians need more ‘wins’.

    These are zero sum entries, their wins come at the expense of others, and the history of the ledger is showing wins all in one direction.

      • I vaguely remember him as being a “respected commentator” at one time, rather than the cranky old rich man he is these days. Is my memory deceiving me, or was that once the case?

      • I saw him on Inside Business a couple of Sundays ago. The subject of the new government came up, and he went off the planet in ecstasy.

        Now, I know that many people hoped for a good Coalition government after six years, and I respect that hope. However, Mr Gottliebsen went on as if it were the second coming of the Messiah. I kid you not, he was absolutely foaming at the mouth with excitement.

        Hope for something different after six years of Labor, hope for something better? Certainly, I can understand. (Whether it will happen is yet to be seen). However, the almost delirious worship by Mr G was somewhat over the top imo.

      • Makes it very hard for me to take Kohler seriously as well. Anyone who has any association with Gotti and Murdoch is tainted IMO.

      • Kohler’s another one who’s lost respect recently in my eyes. Nowhere near as much as a Gotti, but he does seem to have become more of a cheerleader these days.

  2. Young, non-boomer types with the capacity should invest their DIY super in retirement village & aged care developers/operators as a means to screw over boomers financially, and also provide some political hedge against subsequent change in legislation favoring mostly boomers. Those young people without the financial capacity, but with a propensity for carelessness, should gain employment in said facilities in roles dealing with food preparation, storage of chemicals and disposal of matches.

    • I’ve been seriously contemplating this spleen (well, the investment bit anyway). Funeral homes should be doing a roaring trade in the next few decades as well.

    • flyingfoxMEMBER

      +1. BTW, over time, this will happen anyway as the world will begin to face labour shortages, especially in aged care etc.

      The only problem is what will the retires pay the young with?

      • BTW, over time, this will happen anyway as the world will begin to face labour shortages, especially in aged care etc.
        Within a couple of decades (at most) the majority of physical labour will be able to be performed by robots.

        There’s no labour shortage on the horizon, indeed, it’s the complete opposite.

    • Absolutely spot on.

      Not to mention that it will make it so much easier for YOUR kids.

      Actually, why don’t you go one further and agitate for legalisation of euthanasia. On that back of that you could invest in a franchise of the Swiss Dignitas Clinic rather than the old folks homes.

      Not only would you do a roaring (or should I say dying) trade in locals, but also it would be a good money spinner for those coming from overseas wanting to make the final trip in style.

      There you go:

      Fix the current account deficit.
      Free up some housing locally.
      Make a nice handy profit.
      Reduces government social security costs.
      And feel good about making a progressive social change.

      What’s not to like…except that XYers would have to expend some effort to do it.

      You could be the next Eddie Groves – XYZ Ending Centres perhaps? And just think, if your clients are ever dissatisfied, you can get the bikies to solve the problem…legally. Campbell Newman eat your heart out!

      🙂

      Seriously, I think that as the Boomers get older and face their mortality and the problems of what is going to happen if they end up with Alzheimers or some other nasty terminal disease, they will probably start agitating for this and invest in them themselves. If you XYers don’t move soon, you will be gazumped by the Boomers…again!

      Here is your chance to show us what you XYers are made of. Your golden opportunity to do some social reform, get into a startup profitable industry and do it BEFORE the Boomers beat you to it.

      Don’t just waste your time on blogs grumbling about the Boomers, act, move, go, vroom!!!

      Not sure on the historical evidence, that XY actually have what it takes to do all this, mind you. However, miracles do happen at times, and surely there has to be at least one XYer with enough drive to get away from the video games in his parents’ lounge room to agitate? Surely?

      IIRC, Dignitas charges about $5500 for the service. Sounds like a good business proposition to me.

      • Here is your chance to show us what you XYers are made of.

        It’s the height of narcissism to think we have to demonstrate anything of value to you. You’re not the future of Australia, you’re barely the present.

        You’re the past, you have ceased to add any existing or prospective value to Australia.

        Your golden opportunity to do some social reform, get into a startup profitable industry and do it BEFORE the Boomers beat you to it.

        That’s assuming there’s something here worth preserving.

        Not sure on the historical evidence, that XY actually have what it takes to do all this, mind you.

        Emmigration is something that takes a lot of exertion. At highest ever rates of skilled youth emmigrating, it seems like they ‘have it’ in record numbers.

        However, miracles do happen at times, and surely there has to be at least one XYer with enough drive to get away from the video games in his parents’ lounge room to agitate? Surely?

        Enough drive to add to the tax coffers of another country perhaps?

        The best outcome is for every youth to leave Australia with their full HECS debt… leave something behind to remember them by.

      • RP – of course you don’t have to demonstrate anything to anybody. Way to miss the point though.

      • I’d do it emess, but I don’t have a house to secure against a business loan you see 🙂

      • of course you don’t have to demonstrate anything to anybody. Way to miss the point though.

        I haven’t missed the point.

        Your narcissism sees you and your generation as the gatekeeper of wisdom and deservedness.

        You’re asserting that things aren’t going our way that we would like, because we haven’t demonstrated enough militancy to wrestle it away from the incumbent popwer structures.

        In an implicit way, you’re making our that this really is all a test of fitness, and if we did conduct ourselves in a militant effort, our claims then would be justified.

        A nodding “there you go!, that’s all that was required”, and then leaving this mortal plane knowing you’ve left Australia in sound hands, as we finally passed said fitness test.

        You and your kind are pissing away western civilistion for a few trips to Europe in retirement that you don’t deserve.

        So if you are under the impression that my energy, and plans for prosperity are best served by…

        “Here is your chance to show us what you XYers are made of.”

        I can inform you with great confidence that I’ve done the calcs, the cost-benefit outcome is not in this places favour.

        I’ll abandon it to boomers and boat people with developing country mindsets.

        Convince them to provide for you when you’re invalided. I don’t need to exchange my physical exertion for your financial assets when others are competing for my physical exertion and giving me a better return.

      • flyingfoxMEMBER

        @RP

        I can inform you with great confidence that I’ve done the calcs, the cost-benefit outcome is not in this places favour.I’ll abandon it to boomers and boat people with developing country mindsets. Convince them to provide for you when you’re invalided. I don’t need to exchange my physical exertion for your financial assets when others are competing for my physical exertion and giving me a better return.

        +1

      • “Enough drive to add to the tax coffers of another country perhaps?”

        You are so full of it RP. Just leave ffs. You go on about it often enough. Do it and Australia a favour.

        And spare us your constant bloviating whining and whingeing about the terrible BB’s who have done you out of so much. And, take as many whiners as you can with you, please. Then without those lazy hangers on on doing nothing at least there won’t be as many pouty mouths to feed.

        With the whingers I see constantly here replaced with immigrants willing to have a go maybe we can see prosperity again.

      • My feeling is that “active” euthanasia (eg. Philip Nitschze, Dignitas) is currently illegal and generally unnecessary as options currently exist in the form of “passive” enthusania such as the ability to refuse medication and medical treatment and palliative care. This can be formalised in advanced directives and power of medical attorney.

        People are already making a tidy profit from existing aged care facilities, and there isn’t a lot more that can be squeezed out. At the moment staff ratios in nursing homes are completely deregulated, so it is not unusual to see nurse:patient ratios of 1:40-50. A nursing home technically only needs one registered nurse to dispense medications, other lower paid support workers and aged care assistants can be imported and brought up to speed with minimal training, and this is extremely common practice.

        From my experience, boomers who end up in these facilities can look forward to being looked after by low paid carers with poor English skills and poor understanding of the cultural differences. Most people wouldn’t last a day working in an aged care facility – there is a high chance of being assaulted, and having to put up with biting, kicking and ongoing screaming is intolerable. As such, any behavioural disturbance of the kind that is common with dementia will quickly get shipped off to the local hospital emergency department, which is already struggling under the load and associated with significant mortality and worse outcomes.

        However, it’s not all gloomy. Some nursing homes are more fortunate and are located in regions that have access to public outreach teams who specialise in managing behavioural disturbances. This will generally usually involves the use of sedative or (injectable) antipsychotic medications. Fun times!

      • That was a Swift response statsailor. 😉 Probably too much gristle.

        GSM. I think Cromwell said it better:

        “you have been sat to long here for any good you have been doing. Depart, I say, and let us have done with you. In the name of god, go!”

      • With the whingers I see constantly here replaced with immigrants willing to have a go maybe we can see prosperity again.

        Ohh! I am an immigrant and I am willing to have a go… at you.

        You, GSM, are a despicable piece of human garbage. You are an epitome of the worst of the baby boomer generation – a parasitic self-interested partisan scumbag who would sell their own kid for a dime. Other example of your kind include Gina Rinehart and Chris Kenny.

      • “you have been sat to long here for any good you have been doing. Depart, I say, and let us have done with you. In the name of god, go!”

        Fabulous way to sum up GenXYZs sentiments towards the boomers Emess, certainly couldn’t have put it better myself.

        To the skies our boomer overlords, heaven awaits, now begone from our sights!

      • dumb_non_economist

        GSM,

        Probably to late for you to get this. I’d take most of the younger generation over the likes of you any day. You’re a brainless fcuking moron.

        P.S. I see you’re getting some help….”bloviating” hahahaha! You windbag!

  3. To be honest the proposed reforms were going to be horrifically complex to implement – they were basically unworkable when proposed. I would have had more respect for them had Labor simply promised to reverse the 2007 Howard changes entirely.

    Gotti’s crowing is nauseating, but think of this as a chance to start again, with a proposal to tax pension-phase income that will actually work.

    • I think that might have been Costello’s cunning plan anyway were he to have been in another term.

      His problem pre-2007 was that amounts in super did not count toward assessment for eligibility for the pension. By making lump sums tax free on withdrawal, he blunted any criticism of reducing pension eligibility. The obvious next step was to have been re-instatement of taxation of lump sums…after people had forgotten that the quid pro quo for pension eligibility had been made initially.

      The cunning plan fell apart when the Coalition was dumped in 2007.

  4. I’m wondering if all your bleatings about taxing ‘wealthy’ boomers isn’t more about your envy of their supposed amassed superannuation. Statistics seem to say the vast majority of boomers have little super and certainly not enough to retire on.
    If we confiscated the entire funds of the 16,000 that might have paid extra income tax if would make little difference to the country’s debt or even the current budget deficit.
    Does this mean we are really communists after all?

    • ceteris paribus

      Absolutely no one but you are talking confiscation of anything.

      We are talking about a yearly Govt super/welfare handout of $30 billion that goes overwhelmingly to those who are already comfortable.

  5. It is less about socialism and more about breaking the debt slavery that the boomers policies have been intent of shackling their kids with.

    After having their pie, boomers, as a whole, would rather tuck into the following generations total lifetime earnings in order to maintain a standard of lifestyle that has been entirely beyond their ability to achieve, without borrowing from the future and shirking their contribution to Australia’s aggregate social capital.

    Not denying that a great many boomers have worked very hard during their lifetime, all we’re saying is that thanks to the credit boom engineered while they’ve all been holding the reigns of power (not to mention all the tax perks they’ve awarded themselves), those efforts have been disproportionally rewarded.

    Frankly, I’d be happy for the whole rotten debt edifice that they’ve constructed for themselves to come crashing down tomorrow. Yes, undoubtedly we younger generations would do it tough for a couple years, but then we’ve still got another 20+ years to rebuild our wealth, hopefully on firmer foundations that the quicksand by the coast that lot preferred.

    The only difference is you guys don’t have 20 years to rebuild your wealth, but then they’ve had their time in the sun and just like the grasshoppers playing and singing through summer without a care in the world, would have to face up to the consequences.

    It would also be nice to dispense back to the boomer generation questions on retirement income/lifestyle in the face of such an unwind, the same sort of advice that has been repeatedly dolled out to young home buyers trying to save to buy a house:

    “Work harder, work longer. Live a little more frugally, and learn to lower your expectations”

  6. Tax cuts for the rich. Absolutely shameless.

    The main damage was done when Costello took (the contributions-taxed) superannuation pensions completely out of tax returns.

    Labor took their eyes off the ball when that happened (in 2006) and it went through to the keeper, never to be substantially challenged.

    • Labor is just another bunch of party political self-interested grubs for whom power and wealth is its own end.

      Deals with the corporates and the financial aristocrats to sure up power are just par for the course.

      It’s been a long time since the chardonnay socialists gave a crap about anything other than their own social aspirations.