Discussion in 'Wealth Creation & Management' started by ozcopper, Apr 2, 2020.
When this is all over, you could spend the $20k on a nice P&O cruise!
Lol, nice and cruise don't belong in the same sentence @Oddjob , went on one about 5 years ago...never again
The way things are going, you might be able to buy P&O for AUD20k in the near future.
Sounds like DoubleSpeak Oddjob
in plain speak.....
The ECB and IMF use sovereign defaults to provide them with the opportunity to effectively take control through the use of negotiated bail out packages ...... just leave out the negotiation bit
Australia - Emergency Response Fund Act 2019
The Emergency Response Fund (ERF) was established on the commencement of the Emergency Response Fund Act 2019 (ERF Act), on 12 December 2019. On establishment, the ERF was credited with the uncommitted balance of the Education Investment Fund, which has now been closed.
The ERF allows the Government to draw up to $200 million in any given year, beyond what is already available to fund emergency response and natural disaster recovery and preparedness, where it determines the existing recovery and resilience-building programs are insufficient to provide an appropriate response to natural disasters.
seems extremely limited to who would be able to take advantage of it though
I woke up this morning wondering whether to just bite the bullet and move my super to cash now and take the loss. Looking at the news this morning I feel like I have to make the choice to catch the falling blade now and be cut or to try and catch it later when it's falling at terminal velocity during a stampede.
Whenever I have extremes on both ends of a financial decision and I am not sure which way things will go, I just do the 50/50 route. That way you have at least a 50% chance of getting things right, with some dry powder on the side to utilise should an even better opportunity come along.
how will you prove hardship?
Edit: oh I see move to cash not withdraw the cash
Just wait for the government to claim 1% of each workers compulsory super contributions to be paid into the "get us out of the corona debt hole we are now in" fund..
I can agree in part if talking Govt owned / run super schemes and funding channels such as the "Future Fund" (a Sov wealth fund) which will in part pay for Commonwealth Public servants super for years to come. Swann most certainly had his eye on the Future Fund back in the day but David Murray (who was in charge of the fund at the time told him where to go) and with Peter Costello now running the show, it wouldn't happen either. Under a Labor Govt and new mgmt (picked by Labor), then it's a possibility.
In relation to private (yours / mine ) super funds, yes a Govt could pass a law to dip into your super no different to allowing a "Bank Bail-in" using depositor funds but given the sensitivity and political backlash a Govt gets just talking about superannuation, it'd be a brave even desperate Govt (with opposition backing) to even float the idea. I doubt a Govt would go down this path as it effects nearly every voter right here and now.
More likely a Govt would raise or even remove the concessional inward tax level and peg it back at PAYE tax rates (as a first step) and in need, maybe slap a tax on any withdrawals at the other end once retired in order to raise revenue for the Govt coffers...the latter would but political suicide unless the Govt has no choice and we the people have no ability to vote them out of office.
A change to the tax level applied to inward super contributions would be most likely. Whilst not popular, it would not have a direct effect here and now as super contributions come straight off the top of your wage / salary (and into your super a/c less 15% tax before you see your slice) and in a normal world you don't see those $ again until you retire, so the immediate impact on you is nil, but the Govt gets a instant revenue increase....you only feel the pain in years to come when your super a/c balance is lower due to any increase on the tax rate for super contributions....as Govts rely on people have short memories, this is a more likely scenario if the Govt decides to mess with private superannuation.
Converting a bit of super to metal could be the ticket if other expenses are paid for. (just thinking out aloud )
Maybe allocated silver or gold; physical if you can get it cheap.
Please disregard the above, as I'm not advising to do anything.
Great analysis just to be clear I don’t think the gov will dip into our super to pay their bills.
Are you sure? Deficit is heading toward 200 billion, and this is not month in.
I can see legislation that requires industry superannuation finds take a percentage ownership of some type of Gov't trickery to rescue a AAA rating.
Menzies already stole workers' savings to create the aged pension scheme, and if the Liberal Party Hero, could resort to trickery on that scale, it's not a stretch to think they could steal again for the "greater good".
Nope not sure at all,
6 months ago I was sure I could purchase tp,
I was sure I would be able to work until I chose to retire,
and I was sure Australians would never accept martial law.
Was thinking more of a "levy" on future contributions?
As stated above, most sheep wont see this as money coming out of their pocket like a tax and the gov sell it as a "temporary" levy until corona debt is paid
That’s defiantly got wings, ppl get cranky about it for a month or two then they forget because it’s not of FB any more
You sure you don’t work in Canberra?
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