To an equalisation between the West and the East in lifestyle, earnings and living standards. Australia down, China up until we reach a similar level. This is globalisation. Joe and Suzie Aussie Public: "We can now buy everything from overseas via the internet, we would be mugs to buy from expensive Australian manufacturers and retailers, they are a rip-off, they are so expensive". Aussie manufacturers and retailers: Australians have stopped buying our products from us, we are mugs employing expensive Australian workers. If Aussies will only buy things from countries with low wages and conditions then we will outsource our jobs to countries with low wages and conditions. It is pretty clear where this is going.....
Agree with everything written here,we need a Change of System desperately. It makes me worry for my kids future.
The details are pretty scant but he could be referring to a Future Fund type of arrangement which is technically a government fund but independently managed. The Future Fund has performed extremely well since it was sent up and that includes the period where the GFC was smashing the markets. If you were going to spend 1/5th of your super on health care/hospitals/retirement homes anyway then the only difference between the extra 3% being managed with the rest of your super or managed independently comes down to the performance of the two funds. That then goes back to his argument about diversifying investments. The average industry managed "Balanced" (default) fund has returned something like 0.2% p.a. for the last 5 years. Too early to say whether the idea is a good one or not (the details might make it a horrible idea), but it's coming from the guy who set up the superannuation system in the first place. The fact that our super is now the fourth largest pool of invested capital in the world indicates that it was a pretty good idea that has so far worked pretty well so he's at least worth listening to IMHO.
I have no problems with the concept of raising the superannuation levy - with people living longer it's quite possibly a sensible thing to do. I don't like the idea however that it's a new kind of superannuation levy. Currently anybody who so chooses can invest their own superannuation using an SMSF or other kind of wrap product for their own benefit. I have no faith that this government controlled fund would not be invested to benefit political causes rather than with my interests in mind. If that's what they intend, then call it what it is - a 3% increase in the Medicare levy or a compulsory contribution to some future fund type of thing. Don't pretend it's my super.
I seem to recall the Future Fund has been quietly raided for short term spending at least once, by the Krudd Government when the GFC was smashing the markets. Australia's greatest treasurer (no not Swan the Arts graduate!) Peter Costello gave a big stink about it in the news but since he was retired Labor conveniently ignored his well researched objections. If it can happen quietly once it will happen quietly over and over again.
