Superannuation

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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:

3

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

2

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

10

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

6

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

8

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

8

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,

8

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

8

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

4

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

1

Coalition backs away from 12% compulsory super increase

By Leith van Onselen The Assistant Minister for Superannuation, Janet Hume, says providing better outcomes for superannuation savers is her most important priority. With a rise in the superannuation guarantee from 9.5% to 12% having been legislated but not implemented, Hume says the federal government has a “moral obligation” to ensure that the super system

2

Rice Warner demands 12% compulsory super

By Leith van Onselen Actuarial firm Rice Warner is the latest industry player to urge the federal government against any change to the proposed increase in the superannuation guarantee (compulsory superannuation) from 9.5% to 12%. In a paper to be presented to the Actuaries Institute’s annual summit, Rice Warner CEO Michael Rice and head of

2

ASFA rent seekers demand 12% compulsory super

By Leith van Onselen The Grattan Institute has previously argued against increasing the superannuation guarantee from 9.5% to 12%. It contends that the increase would cost workers $20 billion a year in forgone wages. However, the Association of Superannuation Funds of Australia (ASFA) has penned an article claiming that Grattan’s modelling is flawed and that

6

Industry super cashes in on retail fund distrust

By Leith van Onselen Data from the Australian Prudential Regulation Authority shows that industry superannuation funds recorded 13% growth in funds under management in the year to 31 March, compared with growth of 3.4% for retail funds. The industry funds sector now manages $677.5 billion on behalf of clients, while retail funds now manage $623

2

Industry rent seekers demand 12% compulsory super lift

By Leith van Onselen We noted yesterday how Treasurer Josh Frydenberg has followed the Productivity Commission’s advice and called for a broad-based review of the retirement income system, including the interaction of superannuation, government pensions, and the tax system. Well, this has clearly angered the superannuation industry, which has already begun lobbying to stop the

2

Public inquiry to scrutinise 12% compulsory super policy

By Leith van Onselen The Productivity Commission’s (PC) final report on the efficiency and competitiveness of Australia’s $2.8 billion superannuation system explicitly recommended “an independent public inquiry into the role of compulsory superannuation… in advance of any increase in the Superannuation Guarantee rate”: RECOMMENDATION 30: INDEPENDENT INQUIRY INTO THE RETIREMENT INCOMES SYSTEM The Australian Government should commission

2

Australia’s superannuation farce to worsen under Labor

By Leith van Onselen The Australian’s Judith Sloan has once again torn apart Australia’s compulsory superannuation system, describing it as a “national disaster”. Sloan claims compulsory super now only serves to benefit the superannuation industry, rather than its members, and is badly failing low-income earners or middle-income earners, whereas rich people do not need it.

6

Peter Costello admits compulsory super is failing

By Leith van Onselen Former Treasurer, Peter Costello, claims that Australia’s compulsory superannuation level of 9.5% will not generate anywhere near enough funds for retirement, even for workers that contribute for the entire of their working lives. From The ABC: Former treasurer Peter Costello says Australians will not have enough money to become self-funded retirees

2

2019 Budget introduces new super grey gouge

By Leith van Onselen In 2005, former Treasurer Peter Costello implemented the mother of baby boomer bribes in the form of the “transition-to-retirement” (TTR) rules, which allowed those aged over 55 to legally minimise their tax by salary sacrificing up to $35,000 into a superannuation account and then simultaneously withdrawing the funds as income. In

2

PBO: Lifting super guarantee will lower wages

By Leith van Onselen After Labor last week doubled down on lifting Australia’s superannuation guarantee (compulsory superannuation) to 12%, the Parliamentary Budget Office (PBO) today has explicitly warned that such a move will necessarily lower wages: “The increase in the superannuation guarantee to 12 per cent will likely lead to lower wage increases, shifting a

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It’s time for a warts-and-all review into compulsory super

By Leith van Onselen The Conversation’s Peter Martin has called for the Morrison Government to establish a warts-and-all inquiry into Australia’s compulsory superannuation system before the upcoming election, because the captured Labor Government is unlikely to do so: Facing overwhelming odds of defeat in the election due within weeks, one of its last throws of