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The Great Divide in Wealth

March 28th, 2010 No comments

The “Great Australian Divide”.
In the Australian financial Review on the 25’th of March 2010 it is proudly reported on page one ”Tax breaks create a nation of landlords”
It is reported that according to the ATO (Australian Taxation Office) that investors claimed 20billion interest deductions.
Take investor A), he she has $50,000.00 in cash, borrows $300,000.00 and outbids or outbuys a first home buyer for a property, then rents the property to the first-home buyer, who needs somewhere to live. The rent does not cover all the expenses for interests and other costs which the investor A) deducts from his/her other income, and if he/she is in the $0.45 cents in the dollar tax-bracket the government pays for almost half of the cost.
The investor asset is slowly but surely being paid off by the poor renter of the property and the government.
As many investors would have a SMSF (Self Managed Super Fund) they can eventually move the property into their SMSF and save further taxes.
The recent governments in Australia have created laws only for the benefit of the 20% of the upper end of the population as far as income is concerned, and the current government is throwing money around like it is going out of fashion, and most of the money thrown around ends up in the pockets of the upper 20%, and most current and retired politicians will be in that category, no matter from which party or independent.
When the system is put under stress as far as debt is concerned, like currently in Greece and even UK, USA or Australia, the debt is then “so-called socialized” in other words, the haves benefit and the have-nots pay for it.
The democracies in the whole Western World have been hijacked by the politicians for their and the upper 20% populations benefit, and there is no-one out there to speak out on behalf of the so-called battler.
As I mentioned in “The Great Super Fraud”, the compulsory super is the biggest fraud forced onto the Australian citizens and will only excacerbate the divide of the rich and poor.
The worst part is that Associations like COTA, ACPSRO and its affiliated Associations and the ACTU are not representing their members as they should and only look after their top income earners; so what hope has the majority of the people.

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Categories: General Tags:

Superannuation contributions

March 19th, 2010 No comments

Recently there has been a concerted push by some self-serving entities to increase the compulsory super contributions from 9% to 12% and possibly to 15%. The super industry spokesperson Vamos has been very vocal on this subject; but so have the Unions, yet the majority of the Union members will never accumulate sufficient assets to be independent of the Centrelink pension, and the means test for the Centrelink pension will always keep thir income low. So who would benefit from a raise in super contributions? The super industry collecting billions of dollars in management fees, as would many Union leaders who sit on industry funds boards.
Workers of Australia wake up to the “Great Australian Super Fraud” and make your voice heard; your Union representatives and you MP’s are not looking after your interests.
Other Associations like ACPSRO or COTA are not looking after the majority of their members who are on part pensions either.

t matters very little which fund you are with, in the long run the real beneficiaries of the compulsory super will be the super industry.
Here is what Bill Shorten told a delegation of Superannuation funds of Australia as reported in the Australian Financial Review 11 nov 2010:

[b]”The simple reality is that upping the super guarantee to 12 per cent is a huge boon for the industry”
It’s one absolutely founded in good public policy, but there is no denying it will benefit your business enormously.[/b]

Louise Dodson writes in the AFR 16.Dec 2010 in her article “Overhaul offers Gillard a chance to deliver”;

Australia’s unique national superannuation scheme provided a hybrid retirement income system and spawned an enormous new industry.

You can draw your own conclusion who will benefit most from the compulsory super.

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Categories: Pension, Superannuation Tags: