GOOD news people! well at least that's what the government is saying... Translation. From July 2013 the government will be increasing the amount of tax you pay. instead of your employer giving you a pay rise to which you can either spend that money now or save it for a time you need it, we will take that money and spend it for you. Also if you do run in hard times and need that money now, well tough luck. Also don't expect to get paid your super money back inflation adjusted... Keep an eye out for even better news, because by 2030 your super will increase to 90% as the government can't kick its useless spending habits and once again needs you to help us. [youtube]http://www.youtube.com/watch?v=sC-fxBrOsIY[/youtube]
^^This! Seems the only reason they are raising compulsory super contribution rate is so they can transfer more funds from corporate to gubermint to plug the deficit.
Plus more money for the union heavies who control the Industry funds to play with. Thats another reason why I started a SMSF. I looked at who was published as the Board for my industry fund - 100% consisting of union leadership. I know who the industry funds work for. And its' not their members!
My guess is Gillard will gut the viability of low income earners to hold SMSF's through cost prohibitive requirements. This will corral a large portion of the money currently tied up in SMSF's back to bank run & more importantly for the ALP, union run retail superfunds.
While there are still companies like eSuperfund around they will struggle to squeeze out us small time investors. I can see prices rising though as these companies are hit with more legislation and requirements. If I had enough money I would buy all the gold and silver from my SMSF while the prices are low and then sell it back when prices increase, transfer some of my personal wealth back.
Nobody under the age of 50 is likely to ever receive their super if it is in a random industry fund. It's mostly invested in shares and run by clueless ex union bureaucrats. POOF! It's gone.
