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


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


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


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.


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


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


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.


Peter Costello demands “thorough” compulsory super debate

The legislated increase in the superannuation guarantee continues to attract scrutiny, with former treasurer Peter Costello calling for the issue to be “thoroughly debated” in the Coalition’s partyroom. He says increasing the guarantee from 9.5% at present to 12% by mid-2025 will have “very significant ramifications”: “This is an enormous decision and … should be


Chief super rent-seeker drowns in ocean of lies

One by one, the chief rent seekers behind Australia’s compulsory superannuation rort have attacked the notion of freezing the superannuation guarantee at 9.5%. The latest salvo comes from Martin Fahy – CEO of the Association of Superannuation Funds of Australia (ASFA) – who has likened those seeking to freeze the superannuation guarantee to being whacko


Mercer talks its book on compulsory super

Mercer senior actuary, David Knox, is the latest to make the false claim that freezing the superannuation guarantee at 9.5% “will hurt average workers”: Mercer senior actuary David Knox said… even with the full 12 per cent guarantee, the average full-time worker would finish with a super payout worth 58 per cent of their pre-retirement


Coalition to ban conflicted remuneration for financial planners

Treasurer Josh Frydenberg has indicated that the federal government’s crackdown on conflicted remuneration in the financial planning sector will be harsher than the measures recommended by the Hayne royal commission. Rather than simply banning grandfathered trailing commissions, a bill to be introduced in coming days will also include a scheme to rebate clients for any


Paul Keating drowns in ocean of super lies

The architect of Australia’s compulsory superannuation system, Paul Keating, has spread more super lies, claiming that if the legislated super guarantee was halted at 9.5%, it would be “a retiree’s tax on a grand scale”. From The AFR: “It would be a retiree’s tax on a grand scale. Right? Not the hundreds of thousands with


ScoMo rules out stopping compulsory super increase

Liberal senator Andrew Bragg has called for compulsory superannuation to be optional for low-income earners in his maiden speech to parliament. However, Prime Minister Scott Morrison says that will not be happening, even if it is recommended by a proposed review into retirement incomes. Similarly, even if the review also recommends that a legislated increase


Labor’s Jim Chalmers drowns in ocean of super lies

There’s a new super idiot on the block and his name is Jim Chalmers, Labor’s treasury spokesman. Yesterday, Chalmers launched an extraordinarily deceitful attack on the Morrison Government, claiming it was seeking to “kill” compulsory super in Australia and “rob workers” by cancelling legislated increases in Australia’s superannuation guarantee to 12%. From the New Daily:


Industry rent-seekers lobby against opt-in super life insurance

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


New Daily talks its master’s book on compulsory super lift

The New Daily is owned by Industry Super Holdings, so one should expect it to wholeheartedly support lifting Australia’s superannuation guarantee (compulsory superannuation) to 12%, given this would deliver its owners more funds under management to clip the ticket on. This helps to explain why Your Super Editor of the New Daily, Rod Myer, has


Aussies raiding super to pay for healthcare

The cost of healthcare is under scrutiny in the wake of revelations that a growing number of Australians are seeking early access to their superannuation to pay medical expenses. The Association of Superannuation Funds of Australia raised concerns about this trend in February, warning that it demonstrates the need for government funding to the healthcare


Fake “Labor” Party are super flunkies

Over the weekend, Labor’s shadow Treasurer, Jim Chalmers, vigorously attacked Treasurer Josh Frydenberg for refusing to rule-out axing scheduled increases in Australia’s superannuation guarantee (compulsory super): Labor’s treasury spokesman Jim Chalmers warned on Sunday that the government should rule out any future rollback. “These weasel words from Josh Frydenberg are not good enough – especially


Let Productivity Commission settle compulsory super debate

The rent-seeking boss of Australia’s largest superannuation fund, AustralianSuper’s Ian Silk, has urged policymakers to ignore the Grattan Institute’s “flawed and ideological” arguments for scrapping further increases to the superannuation guarantee to 12%. From The AFR: “Those discredited arguments are echoing now as the opponents of super try and lay the groundwork to oppose the


Typical worker to lose $30k from compulsory super increase

The Grattan Institute has slammed the legislated increase in the superannuation guarantee (compulsory superannuation) to 12%, claiming it would rob middle income earners of around $30,000 (1%) of lifetime earnings. From The AFR: “It’s hard to think of a policy less in the interests of working Australians than higher compulsory super contributions,” said Brendan Coates,


Seniors lobby demands more super/housing perks

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: Yesterday, National Seniors Australia called for the scheme to be expanded to the Aged Pension: Ian Henschke, chief advocate of National Seniors Australia, suggests: “The strong take-up of this very conditional


How to avoid an Evans Dixon disaster

Some revelatory news breaking over the last few weeks as listed wealth giant Evans Dixon comes under fire with some aggrieved clients choosing the AFR (here and here) as their messenger. The fact that coverage of the issue has yielded ten more complaints to the paper over the following weekend may indicate this is just


Coalition to scrap “immoral” 12% compulsory super increase

The Assistant Minister for Superannuation, Janet Hume, has given the strongest indication yet that the Coalition will scrap the legislated increase in the superannuation guarantee (compulsory super) to 12%, as well as make superannuation contributions voluntary for those aged under 25. From The SMH: Jane Hume urged warring industry and retail funds to “lay down