Superannuation

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12% superannuation will punish lower income earners

Research by Australian National University (ANU) associate professor, Geoff Warren, has warned that lifting Australia’s superannuation guarantee from the current 9.5% to 12% will hurt lower-income earners – a claim rejected by industry rent-seekers: MP Jason Falinski… said the ANU findings added to evidence that the scheduled rise was not in the best interests of

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Compulsory superannuation drives wealth inequality

Dr Cameron Murray, co-author of the book Game of Mates, has published an interesting straw poll on his Twitter account seeking views on whether “Australia’s compulsory superannuation system make the ownership of assets in the economy more or less concentrated?”: Does Australia’s compulsory superannuation system make the ownership of assets in the economy more or

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Superannuation rentiers to dominate Aussie economy

Rice Warner forecasts that Australia’s superannuation industry will have $7 trillion worth of assets under management by 2034, compared with $2.7 trillion at present. The firm also expects the sector to eventually be dominated by a handful of ‘megafunds’ that will dominate the Australian economy: The report predicts that the superannuation industry will dominate the

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LIC and LIT commissions banned

Looks like the at once all powerful yet invisble MB has done it again. Via Chris Joye: In one of the biggest shake-ups of the financial advice industry in years, the government’s Financial Adviser Standards and Ethics Authority has blanket-banned conflicted sales commissions, including previously acceptable “stamping fees”, for advisers recommending listed investment funds to both retail

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Mathias Cormann looses dodgy security tsunami in LICs and LITs

An income-dependent Boomer mate recently asked me what I thought of Listed Investment Companies and Listed Investment Trusts (LIC and LITs). He’s being pushed to invest in them by a financial planner because his term deposit income has fallen. I didn’t know enough about it be useful so set about investigating for him. What I

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Lies, damn lies and superannuation

It’s fair to say that Industry Super Australia (ISA) has a vested interest in raising the superannuation guarantee (SG) from the current 9.5% to 12%, since this would result in more funds under management to ‘clip-the-ticket’ on, and more fee revenue. This vested interest helps to explain why ISA’s chief economist, Stephen Anthony, has put

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Why raising the superannuation guarantee is bad policy

The Canberra Times’ Crispin Hull penned an article over the weekend defending Australia’s compulsory superannuation system and imploring the Morrison Government to maintain the scheduled increase in the superannuation guarantee to 12%: The [superannuation] system needs some changes, but not in the way that big business, Coalition MPs and right-wing think tanks are suggesting. They

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Australia’s superannuation “dogs breakfast”

The Australian’s Judith Sloan is the latest commentator to lambast Australia’s compulsory superannuation system. Sloan notes that various reports from the Productivity Commission have outlined the key problems with the system, including its unclear purpose, excessive fees, and unaccountable governance. However, the biggest issue remains the legislated increase in the contribution rate to 12% by

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Australia’s retirement system warped by houses

Although older Australians have captured an increasing share of Australia’s wealth: Largely because they have increased their home ownership rates over the past 55 years at the same time as home values have skyrocketed: The situation is nowhere near as rosy for Australia’s renting pensioners, who have the highest rate of rental poverty in the

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Australia’s superannuation system is welfare for the rich

Just a week after The Australia Institute (TAI) released a report – funded by Industry Super Australia – backing an increase in the superannuation guarantee (compulsory superannuation) to 12%, the chief economist of TAI, Richard Denniss, has blasted Australia’s superannuation system for “stealing from the poor to give to the rich”: Welcome to the topsy-turvy

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Treasury: Superannuation system favours the wealthy

A new Treasury paper, released on Friday, claims Australia’s retirement system is giving the wealthiest Australians twice as much financial assistance as those on the lowest incomes: The overall level of public support provided by the retirement income system should be targeted to those who need it most. Higher income earners generally have a greater

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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

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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

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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

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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%.

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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

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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

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Why women accumulate less superannuation than men

The gender gap between men’s and women’s superannuation accumulation has once again come to the fore with the federal government’s review of the retirement income system being urged by a group of 100 high-powered business women and men to examine the specific needs of women. Sandra Buckley, the CEO of Women in Super, says men

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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