Superannuation

1

Let Productivity Commission decide if superannuation robs wages

New research by the Australian Institute’s Centre for Future Work, commissioned by Industry Super Australia, claims that wages have generally increased at a higher rate in years when the superannuation guarantee rate has also risen. The Australia Institute’s report also warns that shelving the legislated increase in the super guarantee is likely to result in

1

ISA talks its book on 12% superannuation guarantee

Stephen Anthony – chief economist at Industry Super Australia (ISA) – clearly has a vested interest in raising the superannuation guarantee from 9.5% to 12%. Because more money compulsorily flowing into superannuation means more funds under management and bigger fees for ISA and its industry peers. This vested interest helps to explain Anthony’s flimsy arguments

22

A new SMSF property rort emerges

Earlier this year, the Council of Financial Regulators (CoFR) recommended the federal government impose a ban on property investment through self-managed superannuation funds (SMSFs) after 18,000 SMSFs were found to have over 90% of their savings in a single asset class, primarily investment properties. However, its recommendation was ignored by Treasurer Josh Frydenberg: Regulators urged

5

Paul Keating’s superannuation incoherence deepens

Paul Keating continues to spin lies about Australia’s superannuation guarantee (compulsory superannuation), claiming the following on Alan Jones yesterday (audio above): Paul Keating: “Superannuation dramatically reduced the call by the Aged Pension on the federal budget. It was forecast to the 4.6% of GDP in 2030. This year, it’s 2.7% of GDP heading to 2.4%.

11

Bill Kelty joins compulsory superannuation liars

Former secretary of the Australian Council of Trade Unions (ACTU), Bill Kelty, has joined Paul Keating in re-writing the history of Australia’s superannuation guarantee (compulsory superannuation). Kelty, like Keating, is now claiming that lifting the superannuation guarantee from 9.5% to 12% would not lower workers’ take-home pay. From The AFR: The super guarantee is due

16

Paul Keating incoherent on superannuation guarantee

Like Groundhog Day, Paul Keating has hit out at those seeking to freeze Australia’s superannuation guarantee (‘compulsory superannuation’) at the current level of 9.5%: Ordinary working men and women have been jammed by the Liberal party at 9.5% of wages going to super, while parliamentarians, without a hint of reflection or embarrassment, pocket 15.4% into

8

12% superannuation guarantee ignores key issue

Superannuation industry pundits remain at odds over whether the federal government should follow through with the planned legislated increase in the superannuation guarantee from 9.5% to 12%. QIC CEO Damien Frawley has called for more flexibility regarding the compulsory superannuation guarantee. He argues that some employers and people on low incomes cannot afford the legislated

4

ISA admits lifting superannuation guarantee will lower wages

New research released by Industry Super Australia (ISA) has admitted that lifting the superannuation guarantee (compulsory superannuation) from the current 9.5% to 12% will lower workers’ take-home pay compared to what they would receive without the superannuation guarantee increase: ISA found that… an average worker would see a reduction in prospective weekly wage rises of

1

Employer groups: 12% compulsory superannuation will lower wages

Several Australian employer groups have backed the views of the Australian Treasury, the Henry Tax Review, the Grattan Institute, and the Parliamentary Budget Office, who claim that raising Australia’s superannuation guarantee (‘compulsory superannuation’) from 9.5% to 12% would lower wage growth. From The AFR: Motor Trades Association of Australia chief executive Richard Dudley, whose industry

8

Australian Treasury: compulsory superannuation increase will lower wage growth

Treasury analysis, obtained under Freedom of Information, claims that raising Australia’s superannuation guarantee (‘compulsory superannuation) to 12% would lower wage growth and would make the gender retirement savings imbalance even worse: Though compulsory SG contributions are paid for by employers, wage settings generally takes into account all labour costs. As such, it is widely accepted

2

Greg Combet barfs compulsory superannuation propaganda

Industry Super Australia bigwig and former union strongman, Greg Combet, has gone on another propaganda tirade against calls to freeze Australia’s superannuation guarantee (compulsory superannuation) at the current 9.5%: As the cornerstone of Australia’s retirement income system, compulsory superannuation is one of our greatest success stories. It has created a significant pool of capital that

36

Industry funds spew compulsory superannuation lies

The superannuation industry continues to white-ant the announced retirement incomes review, claiming that abandoning the legislated increase in the superannuation guarantee (compulsory superannuation) would raise our taxes: “There’s two significant debates going on. The first is whether super should be compulsory or optional, and the second is whether the [amount of super] that employers pay

11

Apostate ACTU demands worker pay cuts

The ACTU’s assistant secretary, Scott Connolly, has demanded the federal government commit to the retention of the legislated timetable for increasing the superannuation guarantee to 12%. From The AFR: Unions have called on the federal government to rule out dumping increases in the superannuation guarantee… “Morrison must immediately rule out any changes to the currently

4

Lobbyists puke as compulsory superannuation in cross-hairs

Earlier this year, the Productivity Commission (PC) recommended recommended the federal government commission a review of the retirement income system “in advance of any increase in the Superannuation Guarantee rate”: RECOMMENDATION 30: INDEPENDENT INQUIRY INTO THE RETIREMENT INCOMES SYSTEM The Australian Government should commission an independent public inquiry into the role of compulsory superannuation in

0

Coalition neuters retirement income review

Earlier this year, the Productivity Commission recommended the federal government commission a review of the retirement income system, including the interaction of superannuation, government pensions and, potentially, taxation: RECOMMENDATION 30: INDEPENDENT INQUIRY INTO THE RETIREMENT INCOMES SYSTEM The Australian Government should commission an independent public inquiry into the role of compulsory superannuation in the broader

4

Labor’s superannution flunkies demolished again

Last week, Labor’s policy thinktank, the McKell Institute, released highly dubious ‘research’ claiming that there is no evidence that previous compulsory superannuation increases eroded workers’ pay rises, and arguing that cancelling scheduled increases in the superannuation guarantee “will only harm workers’ overall wealth and income” (Here’s MB post demolishing these claims). Below is the Grattan

3

Super life insurance reforms pass Senate

The Productivity Commission’s landmark 500-plus page report on Australia’s $2.6 trillion superannuation industry explicitly recommended abolishing compulsory life insurance for people aged under-25: Current settings are more a function of history than considered policy design. …many entrenched problems remain (and insurance accounts for over a third of member complaints against their fund)… Particularly for young

5

Labor’s lackey peddles superannuation lies

Labor’s policy thinktank, the McKell Institute, has released a spurious ‘research’ report claiming that there is no evidence that previous compulsory superannuation increases eroded workers’ pay rises: Key points There is no clear empirical evidence that increasing the superannuation guarantee directly lowers wages. Our analysis finds no evidence to suggest that increases in the Superannuation

1

RBA: lifting compulsory superannuation would lower wages

The Reserve Bank of Australia (RBA) released a statement yesterday in response to ‘questions on notice’ from federal MPs. Buried in this statement is the tacit acknowledgement from the RBA that lifting Australia’s superannuation guarantee (‘compulsory superannuation’) from 9.5% currently to 12% would lower wage growth [my emphasis]: Can the RBA advise what the impact

3

Labor’s superannuation lies fail evidence test

Labor’s Shadow Assistant Treasurer and Shadow Minister for Financial Services, Stephen Jones, has launched another attack against the “dirty dozen” group of Coalition MPs seeking to freeze the superannuation guarantee (compulsory superannuation) at 9.5%: Jones said the “primary target” of the ‘dirty dozen’ – referring to the 1967 movie – MPs is the legislated increase

24

Industry superannuation cashes in on retail fund exodus

Data from the Australian Prudential Regulatory Authority (APRA) shows that the total assets of industry superannuation funds increased by 13.9% during 2018-19, to $719 billion. In contrast, the total assets of retail super funds rose by just 0.5% to $625.7 billion, with the sector recording net cash outflows of almost $36 billion. IFM Investors chairman

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How to reform Australia’s superannuation system

Liberal MP, Jason Falinski, believes the overwhelming majority of MPs in Canberra do not want to lift Australia’s superannuation guarantee (compulsory superannuation) to 12%, as currently legislated. From The AFR: [Falinski] told the Financial Services Council Summit in Sydney on Tuesday that behind closed doors support for a freeze was widespread, including among Labor MPs.

3

Michelle Grattan fails in superannuation spruik

Michelle Grattan has penned a spurious article claiming that raising the compulsory superannuation guarantee from the current 9.5% to 12% is essential to ensure adequate savings in retirement as well as to save the federal budget future Aged Pension costs: The temptation for scrapping the rise, or having some “opt-out” system, becomes stronger when wages

3

Grattan Institute demolishes superannuation industry lies

Earlier this month, Mercer senior actuary, David Knox, made the false claim that freezing the superannuation guarantee at 9.5% “will hurt average workers” and directly attacked analysis from the Grattan Institute supporting a freeze. Today, the Grattan Institute has hit back, releasing a report debunking Mercer’s arguments. Below are the key points: Mercer argues that retirement

8

More proof superannuation benefits the wealthy

One of the biggest knocks on Australia’s compulsory superannuation system is that because of Australia’s flat 15% tax on contributions, those on lower incomes receive minimal concessions (or are penalised), whereas those on higher incomes receive the biggest tax concessions on contributions: Division 293 remedies the situation for those very high income earners above $250,000.