A universal pension would lift labour force participation

National Seniors Australia (NSA) claims that Australia’s aged pension system discourages older Australians from working, thereby contributes to labour shortages: National Seniors chief advocate Ian Henschke said something was wrong in Australia’s pension system design when only 14.2 per cent of Australians aged 65 and over were in the workforce compared to one in four


Morrison Government commits to 12% super

Superannuation Minister Jane Hume yesterday gave industry an iron clad guarantee that the scheduled increase in the superannuation guarantee (SG) to 12% would go ahead as legislated: Asked whether she would provide an ironclad commitment that the government would not freeze future increases in the super guarantee, Ms Hume reiterated that the increases were already


Falling homeownership a threat to retirement system

With home ownership rates falling, especially among younger and poorer cohorts, CoreLogic’s head of Australian research, Eliza Owen, has raised concern that the retirement system is unprepared for a future where a large proportion of Australians rent: “[If you consider] policies that preserved high values of homes in order to secure Australian wealth, you have to


Hospitality wage thieves steal super too

As we know, the hospitality industry has been lobbying the federal government hard for access to foreign workers under the guise of skills shortages. This comes despite the hospitality industry being notorious for systemic wage theft and exploitation of migrant workers. ABS data also shows that the Accommodation & Food Services industry (i.e. hospitality &


CBUS admits lifting super guarantee lowers wages

Industry superannuation fund Cbus is seeking to have the 111 employees in its investment management division ‘carved out’ from a proposed new enterprise agreement and placed on a separate employment contract. The terms of the new contract indicate that workers would see their take-home pay reduced in the event of any increase in the superannuation


Wealthy retirees feast on another super rort

Kevin Davis, Emeritus Professor of Finance at the University of Melbourne, has shone a bright light on another superannuation tax dodge for wealthy retirees: On May 29, the government announced by way of media release the extension of an emergency COVID measure. The temporary halving of minimum drawdown rates for retirement superannuation accounts — introduced in March 2020 while


Lifting women’s superannuation is not the answer

KPMG has proposed a gimmicky reform aimed at boosting women’s superannuation contributions in order to bridge the gap in retirement savings between women and men: The latest report, The Gender Superannuation Gap: Addressing the Options, suggests that the primary carer (usually a woman) should receive a rebate on the 15 per cent Superannuation Contributions Tax


Superannuation ‘fear factory’ stifles reform

The Australian Treasury in June released a position paper calling for reforms to encourage retirees to draw down their super balances rather than passing the money on to their beneficiaries. Industry Super Australia (ISA) and the Australian Institute of Superannuation Trustees (AIST) have attacked Treasury’s position, claiming it is undermining confidence in the retirement system:


Super rorts are costing the budget billions

The ABC’ business editor Ian Verrender has published an explosive report on how Australia’s wealthy use Australia’s superannuation concession system to shelter themselves from paying taxes: Back in 1992, when compulsory superannuation was introduced, it was supposed to take the pressure off federal government finances; to augment the age pension. But superannuation tax breaks introduced


Treasury launches raid on superannuation nest eggs

Treasury’s 600-page Retirement Income Review Final Report forecast that one in every three dollars paid out of superannuation will be an inheritance rather than retirement income by 2060. It also noted that these inheritances will worsen inter-generational equity: Inheritances are significant, representing the transfer of wealth from one generation to another. They are not distributed


Super concession costs to overtake aged pension by 2040

The Australian Treasury’s latest Intergenerational Report (IGR) estimates that superannuation tax concessions as a portion of the economy will increase from 2% to 2.9% by 2060, and that the cost of super tax concessions will surpass the cost of the aged pension by 2040: In the future, more Australians will retire having made superannuation contributions


Australian Treasury: Super increase will lower wages

Yesterday, Treasury Secretary Steven Kennedy told a Senate inquiry that the legislated increases in the compulsory superannuation guarantee (SG) from 9.5% to 12% will push down real wage growth. Kennedy stated that real wage growth would be 0.4% higher per legislated 0.5% increase in the SG, which begins in July and ends in mid-2026: “Roughly


SMSFs leverage into property bonfire

Back in 2016, David Murray –  the chairman of the Financial System Inquiry (FSI) – recommended self-managed superannuation funds (SMSFs) be banned from borrowing to invest because of risks to the financial system: “Superannuation funds should not be leveraged, including SMSFs, because leverage magnifies risk. If the system is unleveraged, then if asset prices rise,


Bloated superannuation sector to expand following Budget

Australia’s bloated superannuation sector was a major beneficiary of last night’s federal budget. Not only did the budget keep the scheduled rise in the superannuation guarantee (SG) to 12% in place, but it also: removed the current $450 per month minimum income threshold for the superannuation guarantee; removed the work test for older Australians to


Morrison bribes seniors with new superannuation lurks

The 2017 Federal Budget included the below measure aimed at encouraging seniors to downsize from their large homes to free-up housing for Australian families: Tomorrow night’s Federal Budget will reportedly extend the eligibility to the scheme to people aged 60. The Budget will also reportedly abolish the work test that applies to superannuation contributions made


Australia’s superannuation system worsens gender gap

The Australia Institute (TAI) has released a new study arguing that Australia’s compulsory superannuation system is worsening the gender gap: [Australian] men get 72 per cent of the $41 billion per year in superannuation tax concessions. Taxation statistics show that the average (mean) superannuation balance at the end of 2017-18 was $153,300 for males and


Paul Keating’s superannuation lies mushroom

The AFR’s Michael Roddan has done a terrific job exposing the many superannuation lies spouted by Paul Keating. First, Roddan attacks Keating’s claim that the Morrison Government’s early superannuation release policy will cost young people up to $500,000 in retirement savings: In a recent four-night ABC series, Keating criticised the early release scheme for causing


Early super release used legitimately by households to pay bills

The Morrison Government’s early release of superannuation policy allowed people in financial hardship to withdraw up to $20,000 of their superannuation savings last calendar year. Sceptics of this scheme claimed the majority of these withdrawals were wasted on things like gambling, alcohol and takeaway food rather than essential household spending. Today, the Australian Bureau of


Coalition green lights compulsory super increase

The Australian reports that the upcoming federal budget will not include a measure to pause the proposed increase in the superannuation guarantee (SG). It will also not contain measures to allow first-home buyers (FHB) early access to their super, as some Coalition MPs have been calling for, following strong opposition from Prime Minister Scott Morrison:


Paul Keating’s super lies debunked again

Former Prime Minister and architect of Australia’s compulsory superannuation system, Paul Keating, headlined Alan Kohler’s four-part special on the future of retirement, aired on ABC’s 7.30 Report. In this report, Paul Keating erroneously claimed that Australia’s ageing population would make the current Aged Pension system unsustainable without increases in the compulsory superannuation guarantee (SG): PAUL


Which model of financial adviser fees is right for me?

The question of financial adviser fees and the method charged has long been deliberated over, both internally in the industry, and from a client perspective. Like many professional services, the immediate ‘return on investment’ from financial advice can be challenging to quantify and validate. But having a good understanding of how you are charged can