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Savings and Superannuation

26 October 2003

Watching inside business I noticed that some commentators suggest that the compulsory super-levy should be raised maybe as high as 15% to increase the savings rate of the ordinary people.

I consider that the c.s.l.is the worst thing forced upon the worker, without changing the way Centrelink treats any private income before it starts reducing the age-pension.

As has reported before the majority of the employees will not accumulate more than $100,000 of super on their retirement and currently a retired couple can have $206,000 of assets apart from their home, car and other necessary chattels before the pension starts to be reduced. For the super-levy as paid by the employer the employees had to forfeit wage-rises and the super cannot be accessed until a certain age. It would be much better if the super-levy was scrapped and every individual could do with their savings, if any as they please. It would be much better for employees to put any extra saving into paying off their mortgages because none of the funds provide higher returns than the mortgage payments, when the 15% levy and other tax implications are considered; recently some funds had negative returns and super-money has been lost to foreign countries, which is very bad for Australia.

Another problem for the contributors is that the Government does not provide for a Government guaranteed fund, such as the Politicians enjoy, and in America some funds have lost almost all of the super assets and the
employees finish with nothing on retirement and this can happen to the funds here as well.

It appears that the only beneficiaries of this system are the Government by collecting taxes from people who at times would pay no tax due to their low income, the high income-earners can reduce their taxes even if they have to pay the surcharge and the fund-manager are earning hefty fees no matter how the funds perform.

Furthermore the flood of money going into the funds has pushed up the share-prices because of the problem of where to invest all the money; but what will happen if the proverbial s… hits the fan? It makes one wonder!

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  1. October 2nd, 2015 at 23:26 | #1

    The only thing the Obamination will never quit doing is giving cpmaaign speeches–babbling the same inane dreck he offered during 2008.Okay, he’ll never quit trying to follow the Alinsky/Davis dream of destroying our society, as well.Ah, well. Some years down the road, the USPS–if it still exists–will probably issue an Obama stamp. Won’t work. Folks will spit on the wrong side.Art

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    • September 3rd, 2017 at 17:24 | #2

      I only wrote on Australian super systems; I don’t know how the US system works.

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