Showing posts with label superannuation. Show all posts
Showing posts with label superannuation. Show all posts

Tuesday, March 27, 2012

Some super stuff actually happens in Parliament | #AusPol | via The Punch

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VIA: http://www.thepunch.com.au/articles/some-super-stuff-actually-happens-in-parl...

Some super stuff actually happens in Parliament

I sometimes think there are two kinds of politics in Australia. The stuff that gets reported, and the stuff that actually affects people’s lives.

The 24-hour news cycle has created constant demand for new content, no matter how trivial. Much of the demand has been fuelled by punditry, pontificating and poll-analysis, rather than actual news.

While the political journos are obsessed with the state of Craig Thomson’s stomach, Peter Costello’s Future Fund dummy spit, and Wayne Swan’s Three Stooges jokes, you could be forgiven for thinking that is all Parliament ever does. Conflict, not matter how confected, is the fuel that drives media coverage.

As an outsider to Canberra, it often bemuses me how disconnected the reporting from the Press Gallery is from the reality of the rest of Australia. Probably the most bizarre moment this week was Clive Palmers’ intervention in the national debate, with his astonishing claim that the CIA is funding the Greens to destabilise Australias coal industry. I don’t want to give Clive too much more publicity but I can’t resist quoting the old Irish saying: If you want to know what God thinks of money, look at the people he gives it to.

So much media space is filled with these stories, but they are frequently so irrelevant to the concerns of Australian families. That’s not to blame media and let politicians off the hook. Too many of them relish playing the man and not the ball, and have given in to the temptation of planning media stunts, than on working with their electorates. Sometimes there really is not a lot of substance behind the surface.

But on other occasions Parliament and the unwieldy process of government actually delivers, often without too fuss being made.

There could be no more vivid example of this disconnect than the past week. Four significant pieces of legislation were passed by Parliament, but blink and you might have missed a couple.

The mining tax and the increase in superannuation linked to it have got some media coverage but most readers would struggle to understand exactly what is happening. The mining tax is long overdue. Strong mining companies create jobs, but when 80 per cent of mining profits end up flowing out of Australia, I think the Australian people are entitled to get a better deal for their minerals.

The mining tax will allow cuts in company tax for other industries, which are struggling with the mining-driven high dollar. That is good news for anyone working or running a business in manufacturing or tourism. The superannuation guarantee will increase from 9 per cent to 12 per cent, phased in over eight years, giving employers plenty of time to plan for it. There is no reason for this increase in super to be deducted from workers’ pay rises.

The mining tax will help pay for the increase in super, and will also pay for the cost of removing all income tax on the super contributions of people earning under $37,000 a year.

When superannuation was introduced - and every time the rate has been increased since - there has been a spate of doom-mongering about the effect on jobs. In every case business has adapted and shouldered their share of the cost of a decent retirement for their workers. I have no doubt this will continue. A few other measures passed through Parliament last week which will have a major impact on some vulnerable workers.

Truck drivers, particularly those on short-term contracts, do a dangerous and often poorly-paid job. There is huge pressure on them to work unpaid overtime or push themselves to the limit to meet unrealistic schedules. The Road Safety Remuneration Bill will put limits on hours and help improve safety. When I’m driving I want to know that the trucks in the lane next to me are being driven by someone who has had enough sleep to function.

Just as importantly, for truck drivers, the new laws provide a floor to their income, a guarantee of a rate of pay so they are not dangerously pushing themselves beyond the limit.

Clothing outworkers are some of the lowest paid, most powerless workers in our economy. Many are currently working 12-hour days, at as little as $5 per hour, sewing the clothes for high fashion labels. Their pay and conditions have been strengthened by the passage of the Fair Work Amendment (Textile, Clothing and Footwear Industry) Bill.

By providing better protection and improved entitlements for vulnerable workers, both these new laws are important steps on the way to secure jobs for all Australians. This is what we mean we talk about secure jobs - a decent wage, good conditions and protected rights at work. That doesn’t mean permanent employment, but it does mean security.

A final, crucial piece of legislation to pass through Parliament last week was the abolition of the Australian Building and Construction Commission. This hangover from WorkChoices was a shameful stain on Australia’s proud reputation as a country which respects the rights of unions and workers - especially the almost a million hard-working people in the building and construction industry who make a massive contribution to the national economy. While we would still like to see the coercive powers of the new regulator removed, the abolition of the ABCC removes a final vestige from John Howard’s unfair workplace laws.

Now, some of these new laws may not have satisfied the Press Gallery’s litmus test for a yarn, but they will make a real difference to real people. Real people like the people who transport the food to your supermarket, make the clothes you wear, and build the offices you work in. Real people with real concerns, who live a long way from the privileged corridors of Parliament House.

Political change is complicated, it’s often not as fast as the media would like, or as spectacular. That doesnt mean its not happening, or the efforts that people put in to create a better world won’t bear fruit. Media coverage of politics tends to under-estimate the intelligence of the average Australian, but over-estimate their knowledge of politics. It also has a bias in favour of stories with conflict and personalities, and against many of the stories that would give people information that is relevant to their lives.

The result is often superficial coverage of the horse-race element of politics and of who said what to whom when. No wonder people think it’s irrelevant to them and tune out.

by
Ged Kearney

Posted via email from The Left Hack

Wednesday, December 14, 2011

Retiring is no longer so super for many #superannuation

ALMOST half of the 2.6 million full-time workers over the age of 45 say they intend to cut back to part-time hours before retirement. But 13 per cent of this age group say they do not plan to retire ever, Bureau of Statistics figures released yesterday show.

For those over the age of 45, the average age of retirement now stands at 58 years for men and 50 for women, with one in four men and one in five women retiring due to sickness, an injury or disability.

The figures highlight the continuing disparity between the amount of money people think they will need in retirement and the reality of their situation.

In an earlier survey, 45 per cent of those aged 45 years and over who had retired reported that a government pension or allowance was their main source of personal income at retirement. But in the newest figures, almost 2.1 million - about two-thirds of all those who were retired - indicated that the pension was their main source of current income.

Read more: http://www.smh.com.au/national/retiring-is-no-longer-so-super-for-many-201112...

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Saturday, November 5, 2011

Getting a fix on #superannuation

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There's one critical reason that lifting compulsory super contributions from 9 per cent to 12 per cent is a good idea. Left to our own devices, most of us simply wouldn't save for retirement ourselves.
Humans are creatures of instant gratification. Given a choice between a good lifestyle in our old age and a good lifestyle now, most would unquestionably take the latter. That's not totally irrational - who knows whether we'll be here, or in shape, to enjoy it later?
But take the decision out of our hands and we feel rather good, indeed virtuous, about saving for retirement. Rationally, we know it's something we should be doing even if we wouldn't do it voluntarily.
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That's why, despite super funds having earned less than 1 per cent for the past five years thanks to turmoil on the world's financial markets, survey after survey has shown support for increasing compulsory super contributions.
Both the major super bodies, the Association of Superannuation Funds and the Australian Institute of Superannuation Trustees, released research this week showing high levels of community support for the increase - 67 per cent and 70 per cent respectively.
The research was timed to coincide with the tabling of legislation to bring about the increase and is subject to the usual accusations of industry groups commissioning research to push their own barrow.
But this is by no means a manufactured finding. Over the past years, survey after survey has turned up the same result. They might not always be happy with their funds but they like the idea of compulsory savings.
It's true that Australia's super system isn't perfect. It is still highly inequitable in giving bigger tax breaks to higher earners than those on low incomes (and to those who can salary-sacrifice or make their own tax-deductible contributions than to those who can't).
As we've seen recently, the ''balanced'' funds most of us belong to are heavily reliant on world sharemarkets to generate the return needed for our comfy retirement.......... story continues

Read more: http://www.smh.com.au/money/getting-a-fix-on-superannuation-contributions-201...

Posted via email from The Left Hack

Monday, October 24, 2011

It's time for employers to pay another 3pc #Superannuation, says #ALP | The Australian

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It's time for employers to pay another 3pc, says minister

BY: BRENDAN NICHOLSON From:
The Australian
October 24, 2011 12:00AM

WHILE super funds have lost $75 billion over four years, the minister insists employer contributions must rise to 12 per cent.

Assistant Treasurer Bill Shorten, responsible for financial services and superannuation, said yesterday workers nearing retirement had been exposed to a 35 per cent loss in the value of equities since 2008.

Super accounts have been hammered by the global financial crisis and fears of a double-dip recession in Europe and the US.

The Weekend Australian revealed on Saturday that baby-boomer retirees were being forced back to work with almost nothing to show for contributing $430bn in compulsory super since the GFC.

Mr Shorten said these people were "doing it hard" and many had not saved enough to retire.

"Thank goodness we have compulsory superannuation," Mr Shorten told the ABC's Insiders program.

But he said 9 per cent was not adequate for people to retire on: "That's why it's so important we lift superannuation from 9 to 12 per cent because we don't want people working their whole life . . . and then retiring poor."

Mr Shorten said Australian investors should not lose faith in their own stocks.

"When you look at Australian stocks, at the moment, I still think they're a good bet," he said.

" I think the fundamentals of Australia are solid."

Mr Shorten said that was not just a benefit of the rise of China.

"We've got relatively low unemployment compared to the rest of the First World. Our public-sector debt . . . is the envy of the rest of the world.

"And we've got a big stream of projects coming on. In the mining and hydro-carbon sector last year it was $47bn worth of projects. This year it's projected to be $82bn."

Mr Shorten said Australia's super scheme had big macro-economic benefits, comparing it to the problems facing the US.

Had the US followed Australia's lead in 1985 and again in 1992, "the Yanks would have $13 trillion in savings", Mr Shorten said.

Posted via email from The Left Hack

Thursday, October 6, 2011

Insurance could help make super money last longer | #Ausunions

PEOPLE will be able to take out insurance against living longer than their superannuation lasts, under reforms being considered by the Gillard government.

Assistant Treasurer Bill Shorten said he had "heard loud and clear" the industry's calls for government action to improve the range of financial products available for people to draw down their superannuation.

"There is not a lot of point in building up a great system if, in the drawdown phase, there is inequity and challenges to the sustainability of the system," Mr Shorten said.

The Henry review said rising life expectancy meant new financial products were required to enable people to finance their retirement. The industry has been pressing for the government to allow superannuation funds to offer deferred annuities.

Challenger's head of government relations, David Cox, said that a person retiring at age 65 who was worried that their superannuation savings would only last their expected life span until 90 years could, for an outlay of $10,000 on retirement, buy an annuity that would deliver half the age pension from 90 years for as long as they lived.

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These products were banned before now because of fears they may be used for tax deferral. However, Mr Cox said safeguards could be introduced.

Mr Shorten said there was a need for Treasury and industry to work together on new products for the "drawdown" phase of superannuation so that "people don't work hard their whole life and retire poor".

Lateral Economics chief Nicholas Gruen, a Keating-era economics adviser who helped devise the super system, called for workers in their 20s and 30s to be able to use their super as a house deposit and for the government's "Mickey Mouse" first-home saver scheme to be scrapped.

Dr Gruen, who served as an adviser to former treasurer John Dawkins, said young people's superannuation guarantee payments should be channelled into compulsory savings accounts to finance house deposits.

Posted via email from The Left Hack

Wednesday, September 21, 2011

Stronger Super means more secure retirement for Australian workers | ACTU |

Stronger Super means more secure retirement for Australian workers

Published: 21/09/2011
Today’s commitment from the Government to deliver better and cheaper superannuation funds for Australian workers is an important step towards providing a more secure retirement.

ACTU Secretary Jeff Lawrence said unions welcomed the release of the final details of the Government’s Stronger Super reforms, including the development of MySuper, which will replace existing default funds, with no entry fees and a ban on other hidden costs for members.

“Unions have supported the industry fund model for the past 30 years, based on its record of low fees, diversified investments and good returns. So we are pleased the Government has followed through on its election commitment with the release of the Stronger Super reforms.

“The new MySuper product could lead to workers paying up to 40% less in super fees and that is welcome progress in unions’ campaign to improve the adequacy of retirement funds for Australians,” Mr Lawrence said.

“We are also pleased the Government is working towards its commitment to increase the Superannuation Guarantee to 12%.

“Workers deserve a comfortable retirement but the current 9% contribution rate simply means that will not be an option for many Australians.

“It is however disappointing that to date Tony Abbott has refused to commit to improving superannuation outcomes through the increase.

“That is why unions this week launched a new campaign, Stand Up for Super, led by a petition of Australian workers addressed to Members of Parliament.

“Given the Liberal Party’s history of opposing improvements to the superannuation system since compulsory super began in the 1990s, we can have no confidence they will support this change either.

“However, we are pleased the Government is committed to improving superannuation outcomes for Australian workers and today’s announcement is an important step towards that goal.”

Mr Lawrence said today’s reforms would also mean measures to provide better information to workers on their payslips, so that they could see their superannuation had been paid, while regulatory bodies APRA, ASIC and the ATO would be provided with better tools to improve their oversight of superannuation

Details of the ACTU’s Stand Up for Super campaign is available online at www.standupforsuper.com.au It includes an online calculator so workers can see how much more in retirement income they would have with a 12% Superannuation Guarantee.
View the article here

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Monday, September 19, 2011

Unions launch campaign for 12% super | ACTU | #Ausunions #NSWpol

Unions launch campaign for 12% superannuation to guarantee secure retirement for workers
Published: 19/09/2011

The average 25-year-old worker could lose $143,000 from their planned retirement savings if Parliament does not support the Labor Government’s plan to increase their Superannuation Guarantee to 12%.

Unions will today launch a new campaign to increase the Superannuation Guarantee to 12% amid uncertainty about whether Parliament will support the Labor Government’s plan to improve security in retirement for all Australian workers.

ACTU Secretary Jeff Lawrence said the new campaign, Stand Up for Super, would be led by a petition of Australian workers addressed to Members of Parliament.

The campaign is being launched online today at www.standupforsuper.com.au It includes an online calculator so workers can see how much more in retirement income they would have with a 12% Superannuation Guarantee.

“Workers deserve a comfortable retirement but the current 9% contribution rate simply means that will not be an option for many Australians,” Mr Lawrence said.

He said 8.4 million Australians would receive an increase in their retirement incomes as a result of the Government’s proposed reforms, which would come into effect in July next year.

The reforms mean a worker aged 30 today on average weekly earnings would retire with an additional $108,000 in superannuation. And even someone the same age who can expect interrupted working patterns due to parenting responsibilities would have an extra $78,000 in retirement savings,

“The Government has shown leadership in this important area, but to date Tony Abbott has refused to commit to improving superannuation outcomes, which would be funded by the passage of the Minerals Rent Resource Tax,” Mr Lawrence said. “Given the Liberal Party’s history of opposing improvements to the superannuation system since compulsory super began in the 1990s, we can have no confidence they will support this change either.

“Unions fought long and hard for superannuation to be introduced at all in the 1990s, despite opposition from business and the conservative side of politics, who argued the sky would fall in at the time.

“In contrast to the claims of business, Australia’s economic prosperity has thrived and we remain one of the wealthiest nations in the world. However, this is not reflected in the retirement incomes of many Australians who will not have enough money to retire on if employer contributions are stuck at 9%.

“The proposed reforms will also help address the challenges of an ageing population.

“Over the next 10 years, $85 billion will be added to Australia's pool of superannuation savings. A proportion of these savings will be channelled back into the Australian economy to fund jobs and nation-building infrastructure.”

Mr Lawrence said unions had already secured super contributions of more than 9% for about 2 million workers through collective bargaining and aimed to extend that through the workforce.


View the article here

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