THE USE AND ABUSE OF SUPERANNUATION

(For an expanded version of this article see also “The Superannuation Revolution”)

Australia owes a huge debt of gratitude to Paul Keating.

He established compulsory superannuation two decades ago despite a hostile Opposition that declared it to be a step towards socialism.

A few weeks ago, I chaired a Per Capita meeting in Sydney at which Keating reminded the capacity crowd that the original intention of his superannuation legislation was for everyone to accumulate as much Super as possible thereby ensuring that, in all of our retirement years, we could enjoy a lifestyle better than that which is the lot of someone on the age pension. Continue reading “THE USE AND ABUSE OF SUPERANNUATION”

Is Super very Super?

A comment on the explosive election issue of Superannuation

There are few, if any, certainties in life. Nevertheless, I am willing to put significant money on the real possibility that the September Federal Election will be decided by the votes of the rapidly growing ranks of Seniors, many of whom are not happy chappies.

Right now, there are a number of issues that will determine where the Oldies vote will go. One is the desperate shortage of Age Friendly Housing, while another is the blatant discrimination against Seniors who want to stay in the workforce or return to it. However, the most powerful one is the uncertainty and complexity of Superannuation, combined with the poor financial returns that come from it.

Let me lead you through a chat about my view of the basic principles of how a good National Superannuation Program could best be run, without commenting on any details of the complex legislation that has grown-up around it so ridiculously in Australia over two decades. Continue reading “Is Super very Super?”

The pain of being like Spain

Premier Campbell Newman made headlines when he declared that Queensland’s economic position is similar to that of Spain. His remarks reminded some commentators of Paul Keating’s famous forecast that Australia could become a banana republic, a comment that caused him to suffer a fair bit of flak for years afterwards.

Of course, Newman knows, as we do, that Queensland’s position is nothing like that of Spain. His State has the backing of a strong Australian dollar, while Spain is tied to the Euro which is well on its way to being a terminal currency. Spain has 25 per cent of its population unemployed, whereas Queensland’s percentage is one quarter of that. Additionally, Queensland’s debt, and that of Australia, is miniscule compared with Spain’s.

So, why did Campbell Newman make such a dramatic statement? Continue reading “The pain of being like Spain”