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The Forum > Article Comments > Australia’s superannuation - DNA and transparency > Comments

Australia’s superannuation - DNA and transparency : Comments

By Mike Gilligan, published 15/4/2013

It is not easy to stand back and see what's really going on in our super. This is because the debate is charged with self-interest.

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An interesting and informative critique.

“For the first time, questions arose about the sustainability of the super system.”

Speak for yourself. Those who understand sound economic theory, or the first thing about politics, knew from the get-go that it was unsustainable, and would only end in massive governmental defalcation – it’s in its DNA!

“It is not easy to stand back and see what's really going on in our super. This is because the debate is charged with self-interest…”

Fancy that.

“…it was not a selfless policy …”

What policy is? If it was, its supporters would put their own money where their mouth is.

“…but one which the unions grasped to avoid oblivion.”

Yes, and at a deeper level, it was intended to solve the problems caused by an early failed intervention – namely the unsustainability of the old age pension – by another intervention.

“Deciphering Kelty is not always straightforward.”

That’s because he’s both abysmally ignorant, and lying.

“It is little known that public funds' operating expenses, generally, grew every year since the Australian Prudential Regulatory Authority (APRA) began keeping records…”

Fancy that.

What amazes me though, is why anyone would think that this would *not* be the result of a compulsory thieving scheme. What’d you think was going to happen LOL?

“Keating says that, in 1983: I wanted unions to enjoy a structural or ongoing benefit in recognition of their years of wage responsibility.”
Thus displaying the aggregate or collectivist thinking whose fallacies lie at the root of all the sickness that the author diagnoses.

“The unions have purposefully built a new finance network around universal super.”
Of course. Where it’s all heading is that the union bosses will control these vast amounts of money critical to the economy. And so well and honestly too. Thanks Labor
Posted by Jardine K. Jardine, Monday, 15 April 2013 7:59:06 AM
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Well, interesting and informative. Transparency or its lack, is just the tip of a very large iceberg!
A very wise man once commented, at some point complexity always becomes fraud.
And if nothing else, our system is complex.
It also comes with some very generous tax concessions or welfare for the rich?
The top 10% getting more of it than the bottom 60%?
We apparently concede something like 15 billion per, to a group of very well heeled intending superannuants, to encourage them to save for their retirement.
Absolute nonsense in a compulsory system!
This group are already so wealthy, they would never ever qualify for a pension?
Others live in multimillion dollar mansions on acreage estates, and may be cash poor but asset rich.
And able to produce significant produce and sell it at weekend markets, to be all but self-sustaining?
I don't believe the pension/taxpayer charity, was ever intended for people, who would still qualify as multimillionaires, if the family home was included in an expanded list of assets.
Albeit, one with a higher eligibility cap!
Our system needs complete revision.
We can't have one group of so called fund managers helping themselves to 2% of their total fund, while other do extremely well on 1%!
Nor can there be fees or commissions, charged exponentially, against what is essentially a single service at the onset?
Some of these smooth talking millionaires/operators, remind me of the very clever people, who once ran Enron. You know, the ones on the side of the Angels!
I believe we need both a Senate inquiry and a royal commission into super, as a prelude for quite massive reform! Continued:
Posted by Rhrosty, Monday, 15 April 2013 9:51:40 AM
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We need massive reform, not just of our super system, but the tax system as well! Basically to lever the talons of some entirely non productive financial vultures off of both!
Lets start with the tax system, one of the most complex and opaque in the world, and full of more holes than Swiss cheese.
It's a scrambled rotten egg omelette that simply can't ever be fixed and therefore ought to be thrown out in its entirety.
And the replaced by a simple stand alone unavoidable 4.8% expenditure tax, discussed before.
This transparent simplicity, would in the first instance, negate the need for compliance and its current often onerous costs, thereby adding some 7%, (averaged) to the bottom line.
The accompanying repeal of virtually all other tax measures, improving it by around 30%.
Household disposals would improve by around 25%, making a 15% non contributory compulsory super immediately doable.
There should be no lump sum payout, that could see most of this money wasted away in offshore holidays/expensive gifts for rallies, or p-ssed against the wall?
But instead, doled out as an, annually adjusted for inflation, generous annuity, that lasts as long as the superannuants!
Any fund that couldn't cope with that requirement, not worthy of the title, or the compounding interest, and income generating infrastructure, that would fund it.
Look, high rise, low rent apartments, cost between $29,000.00 and $40,000.00 each, depending on the size and fittings.
Moreover, we are building around a 140,000 to few houses for natural demand, PA.
Concrete reaches its maximum strength in around 80 years, while some well know builders, build 4 bdrm steel frame houses, with a fifty year structural guarantee, for under $150,000.00 each, excluding land.
Equity markets rise and fall, and some lose their shirts!
But low rents at the bottom end of the market, simply do not fail, even during the height of the great depression!
Ditto, cooperative food processing/packing/distribution enterprise!
And, I'd bet on, (can't fail) rapid rail and low cost energy provision, over a similar, long forward looking term!
Rhrosty.
Posted by Rhrosty, Monday, 15 April 2013 10:39:13 AM
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Footnote: We need reform of our tax system for any number of reasons, quite massive tax avoidance being just one?
Look, 95% of corporate Australia, has headed offshore, taking their tax dollars with them.
Nonetheless, they still do as much business here, and rely on taxpayer funded resources and infrastructure, to make that possible.
Company tax now varies between 1-4% in real terms, while around 40% of our international corporate guests, reportedly pay no company tax to anyone?
Many of our larger onshore corporations have created subsidiaries in tax havens, to allegedly outsource services, which may even be charged at higher cost, than the local equivalent, for the sole purpose of moving taxable profits offshore, and reducing or even removing, what most would concede, is a fair share of what remains, as a still common burden or responsibility.
Lastly, there is this thing called destiny of demography, where we see a shrinking pool of taxpayers shouldering a growing burden.
This can't happen, particularly when it is glaringly obvious, that there is a better more intelligent way to collect tax, directly from the GNP!
Growing the tax base is then as simple as growing the economy!
The only problem, regardless of who we elect, we only ever seem to get do nothing politicians, to do it for us.
And as a group, politicians seem remarkably short sighted, extremely recalcitrant, and or myopically focused on just the media/election cycle, and their rusted on, obtuse asinine ideology?
And little else of real, nation building/changing worth!
Think, we pay these leather polishers, a minimum of 180 grand plus a year!
Rhrosty.
Posted by Rhrosty, Monday, 15 April 2013 11:17:12 AM
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Because Australia's superannuation system is based on percentage of salary, thirty-seven percent of the $30 billion spent annually on government contributions goes to the top 6% of earners.

In addition, non-salary earners, casuals, freelancers, carers, small business people, and those who fall outside the salary contribution food chain remain drastically under-superannuated or with no super at all.

If this is the best superannuation system in the world, I'd hate to see the worst.
Posted by Killarney, Tuesday, 16 April 2013 2:30:28 AM
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