Superannuation

13

Falling home ownership creates headaches for retirement system

By Leith van Onselen On Friday afternoon, The AFR posted a series of articles warning that the collapsing rates of home ownership among younger cohorts could ultimately cripple Australia’s retirement system. Consider first, the below article by Sally Patten and Jacob Greber: A steady slide in home-ownership rates is building up a fresh demographic headache

15

Wealthy super tax breaks thrust back into spotlight

By Leith van Onselen Generous superannuation concessions provided to high-income earners was thrust back into the spot light last night in a report from ABC’s The Business (video above). The report discloses that very high income individuals, such as the CPA’s Alex Malley,  CBA boss Ian Narev, Telstra boss Andy Penn, and Wesfarmers boss Richard Goyder,

7

The bun fight over default super

By Leith van Onselen Debate over the optimal level of competition to manage Australia’s hundreds-of-billions in default superannuation savings has been raging for years. This debate has centered around evidence of superannuation funds gouging members with excessive fees, estimated at more than $20 billion a year. In 2014, the Murray Financial System Inquiry showed that

15

Banks’ superannuation fee gouge rolls on

By Leith van Onselen There are arguably few better businesses to be in than Australian superannuation. Thanks to compulsory contributions, set at 9.5% of employee wages currently, along with a largely fixed cost structure, the superannuation industry continues to rake it in, earning fat fees on everyone’s retirement nest egg. Nowhere is this cozy arrangement

20

Labor to block Coalition’s FHB super bribe

By Leith van Onselen In his post Budget speech delivered yesterday, Labor Shadow Treasurer, Chris Bowen, pledged to block the Coalition’s Budget measure allowing young Australians to make contributions into their superannuation for future use as a home deposit. From The New Daily: In his budget reply speech on Wednesday, Mr Bowen said most of

11

Gotti the rent-seeker wails at modest super reforms

By Leith van Onselen After lobbying incessantly against the Turnbull Government’s modest reforms to superannuation announced in last year’s Budget, Robert Gottliebsen (aka “Gotti) has gone on another rant today against possible further changes affecting self-managed superannuation funds (SMSFs). From The Australian: Let’s hope that Treasurer Scott Morrison stays well away from superannuation changes in

33

Experts slam Coalition’s super-housing fix

By Leith van Onselen Various experts have emerged to slam the Coalition’s proposal to allow first home buyers (FHBs) to access their superannuation to purchase a home. From The Canberra Times: Paul Keating has dramatically added his voice to those of industry and finance experts warning the Turnbull government against allowing superannuation savings to be used for house purchases, branding the

12

SMSFs continue to grow in popularity

By Martin North, cross-posted from the Digital Finance Analytics Blog: APRA has released the latest superannuation statistics to September 2016. Total superannuation assets are worth $2,145.6 billion up +7.4% in the past year. Of this, $1,330.5 billion are in entities regulated by APRA, up 8.7% in the past year. Self managed superannuation balances reached $635.9

10

Labor want tougher superannuation reforms

By Leith van Onselen The Labor opposition has called on the Coalition to implement implement three additional reforms to superannuation concessions that would make the system more equitable and raise significant additional Budget revenue. From The AFR’s Philip Coorey: If the government refuses Labor will most likely pass the government’s package but take its own

15

Hypocrite Peter Costello whinges about super complexity

By Leith van Onselen Former Treasurer Peter Costello continues to whinge about recent reforms to superannuation, complaining that they have increased complexity which he argues is eroding the public’s confidence in the system. From The Australian: “With growing complexity, extreme complexity, people will shy away from (the super system). And I think they are right

37

Aussies raid super to pay their mortgages

By Leith van Onselen An interesting series of comments appeared on a recent story on mortgage delinquencies published at Who Crashed The Economy. A person named Sarah, who collects debts for a smaller bank, claimed that the number of people struggling with their mortgage payments, and attempting to access their superannuation early, has surged outside

15

Mirabile dictu: ATO rules out super-housing fix

By Leith van Onselen Over the past few years, we have witnessed several parties call on the federal government to allow Australians to use their superannuation to purchase their home, including former Treasurer Joe Hockey, Senator Nick Xenophon, “high-rise” Harry Triguboff, and even the Committee for Economic Development Australia (CEDA). In late September, News.com.au published

56

SMSF property leverage a ticking time bomb

By Leith van Onselen It has long been my view that the Howard Government’s decision to allow self-managed super funds (SMSFs) to leverage into property and other investments was a mistake. Specifically, it allowed SMSFs to be turned into speculative vehicles rather than savings vehicles, in turn dramatically increasing the riskiness of Australia’s retirement savings

13

The importance of super to retirement is way overblown

By Leith van Onselen The Grattan Institute has released an interesting background paper showing that the importance attached to superannuation as a way of funding retirement is way overblown, with super likely to remain the smallest pillar of retirement income for the foreseeable future: The reality is that superannuation savings account for only a small

26

The Gotti super rent-seeker spins out of control

By Leith van Onselen Robert Gottliebsen (“Gotti”) has added a new string to his superannuation rent-seeking bow, this time bemoaning that older Australians are being required to actually run-down their tax-free superannuation savings rather than passing them on to their heirs. From The Australian: Younger readers may not realise that once a superannuation fund goes

8

Super reform is not over

By Leith van Onselen After the Coalition’s ‘triumphant’ backdown on superannuation last week, which has paved the way for reform through the Senate, talk has already turned to the next stage of potential reforms to superannuation. From The AFR: A new law to define the purpose of superannuation could foreshadow the end of tax perks

29

Pathetic Coalition dumps $500k super cap

By Leith van Onselen The Turnbull Government has caved to pressure from the Coalition right and the Labor Party and dumped the $500,000 cap on non-concessional contributions. From The AFR: In a compromise to be put to the party room for approval on Thursday, sources said the $500,000 cap backdated to 2007 had been removed

2

Labor continues to white ant super reforms

By Leith van Onselen Ever since the Turnbull Government first announced its superannuation reform package in the May Budget, the Labor Party has run a phony campaign claiming that the proposed $500,000 cap on post-tax contributions was “retrospective” because the start date would be 2007, and demanded that it be brought forward to Budget night

7

Abbott continues super reform white anting

By Leith van Onselen The previous week, former Prime Minister Tony Abbott stormed the Coalition party room demanding that superannuation reform lay-off the wealthy, whilst demanding that the low-income superannuation offset be abandoned. And on Friday, Abbott continued the superannuation reform white anting, speaking on 2GB’s Alan Jones to lobby against placing caps on contributions.

5

Labor continues superannuation lies

By Leith van Onselen It is becoming increasingly evident that achieving meaningful reform to superannuation (let alone anything else) is going to be a difficult task. On the one hand, you have the Turnbull Government locked in civil war over the superannuation changes, with a break away group of conservative Coalition members – led by

10

Gotti’s super rent-seeking turns nauseating

By Leith van Onselen Robert Gottliebsen (“Gotti”) has launched another non-nonsensical attack on the Coalition’s proposed superannuation reforms. From The Australian: The superannuation debate should not just be about a grab bag of measures to cut current costs but a debate about how we fund the retirement of our ageing population and how we can

6

Amid civil war, super reform to come in stages

By Leith van Onselen With the Coalition locked in civil war over its superannuation reforms, Treasurer Scott Morrison has announced that super law changes will be implemented in stages, with draft legislation of the non-controversial elements to be released today. From The Australian: Mr Morrison said talks were continuing with backbenchers about contentious issues such

10

Morrison launches new salvo in super civil war

By Leith van Onselen Superannuation reform continues to divide the Coalition. Over the weekend, it was revealed that former Prime Minister Tony Abbott stormed the party room on Thursday demanding that superannuation reform lay-off the wealthy, whilst demanding that the low-income superannuation offset be abandoned, thus adversely impacting the poor. These demands reportedly caused heated

2

Grattan: Why super reform must succeed

By Leith van Onselen The Grattan Institute has released a working paper, entitled A better super system: assessing the 2016 tax reforms, which argues that winding-back superannuation concessions is the “acid test” of Australia’s political system and should be “one of the first items of business in the current Parliament”. Implementing the Coalition’s reforms announced