Superannuation

The compulsory super is not going to go up until 2021 and will remain frozen at 9.5%.

What is the big deal?

If you want to contribute voluntarily you can.

I upped mine 5 years before I retired.  Did not miss the money as was forced savings.

Some people may be quite happy not to contribute for a few years and perhaps pay off their mortgage or whatever.  They have the choice. 

9 comments

As the compulsary super is paid by the employer shouldn't the employee contribute to their own retirement..,

Radish

The super is a trade off against wage increases . Seven years delay will not convert to wage rises in the meantime and it will not stop the removal of the tax breaks for lower income earners on super the well are presently getting .

Howard fought against Keating for the introduction of super in the first place . Seven years from now the libs will resist it again , the rise .

Personal contributions[edit]
People can choose to make extra voluntary contributions to their superannuation and receive tax benefits for doing so. However, the current superannuation legislation states that individuals who contribute more than what is allowed under "the annual superannuation concessional contributions cap" must pay the superannuation excess concessional contributions tax which is set at 31.5%.[10]

http://en.wikipedia.org/wiki/Superannuation_in_Australia#Personal_contributions

Crikey paywall

The Coalition's view of super remains deeply conflicted and confused. What was, in the Keating years, a kind of old establishment sense of affront that ordinary workers would be allowed the privilege of superannuation has morphed into a toxic mixture: one part mild libertarian resentment of compulsion, one part vague understanding that our pool of super funds, soon to be $2 trillion, is an important positive for the Australian economy, and two parts fierce resentment of the industry super sector (portrayed by the Coalition as run by "venal" and "corrupt" union officials but in fact overseen by representatives of both employer groups and unions) and the way it consistently and strongly outperforms the private sector funds. Add to that mix the Coalition's eagerness to look after the financial planning industry and the big banks, for which the gutting of FOFA was a key goal in the Coalition's return to government.

The rise in super delay was caused by Shorten as he would not negioate on the mining tax and PUP demanded it as the price of putting through the repeal of the mining tax . Which was a policy taken to the last election . 

Labor’s oppositionist intransigence has struck a double blow to its electoral standing: Palmer is now seen as the saviour of Labor’s Schoolkids Bonus; and the far greater negative policy impact of a deferred increase in compulsory superannuation, Labor’s proudest, long-term reform, is falling most heavily on lower-income Labor supporters.

By not coming to the table and imposing its priorities, Labor has not only lost a relatively paltry and unfunded scheme, it has allowed Palmer to trade off superannuation for lower-income earners.

The Prime Minister, the Treasurer and the Finance Minister have all demonstrated an ability to accept reality, compromise and take the “half a loaf” that’s achievable in the name of good policy.

In the first two sitting weeks of the new Senate, the carbon tax was repealed; in the second two-week sitting the mining tax has been repealed. There’s plenty more to come but the impression of gridlock is going

Labor and the Greens are left ­irrelevant and on the sidelines. If there are broken promises, the government can point and say: “Blame Bill Shorten.”

aus today

Wage rises is a supply and demand issue.

Artifically forcing wages up will only cause higher unemployment in the long run

Economics 101

It is actually a very cunning policy - if people have more money in their pocket, most of them will spend it thus stimulating business and economy - as before very few will consider saving it for their retirement.

I'm still trying to figure out how you untied yourself

Whatever are you talking about SS

I have been busy doing $eth's Gold Mining Tax

Now if you have tied somebody up somewhere I think you had better go and find them - it is probaly either Fleur or that new green chick Suze that Pete is so besotted by.

And then go and see your eye specialist as you most probably require cataract removal - unfortunately since it was taken off the list a few years ago you will have pay up big time.

Well Abby, it does not say much for the intelligence of people does it.  We must be a lot of dumb bunnies if only a few will consider saving for their retirement.

Oh well, be it on their heads if they have to live on the smell of an oily rag in their retirement.  Things are bad enough for those who have to live entirely on the aged pension now;  it probably will be a lot worse when the current workers get to retirement age as we have fewer and fewer people in the workforce to support one person on the pension as it is now.

Yes Radish

Already there are 4 generations of families in the Western Suburbs that have never worked - guess theiy feel the pension is their entitlement which may have been the case if we did not have such a huge debt hanging over us.

Also there are a lot of people on Disability Pension who do not yet qualify for an aged pension.

Commonsense would tell any thinking person that any government, no matter of which persuasion, will be unable to provide everything people want if  spending is not brought under control.

We have to do some of the heavy lifting ourselves and not rely on others to foot the bills.

Warnings were given many years ago that people would need to  help fund their own retirement in the future

Unfortunately in the last 20 years or so the  reliance on government to be the "cash cow" for all their wants has increased.

In UK the government run the superfund and people get their fair share.

Here in the private funds there are all sorts of rorts going on ripping contributors off...........and you all let them get away with it.

I was in the government fund and they look after their own but dont give a bugger about you lot.

Well we are not in the UK and we do have industry funds as an alternative and you can set up your own self managed fund.

I know you are not in UK but you force your government into doing THEIR job and not farm it out to rip off merchants

And  how would you suggest that be done ?

Radish

It appears to me that the Politicians are OK, getting their share so why not the rest of the Australians .

After all it was the Politicians that spent the Australian's Pensions and now they are the only ones who are getting the goodies no matter what.

Marcia Keegan from SGS Economics and Planning said low-income earners could be worse off by tens of thousands of dollars.

"Someone who's earning $35,000 a year for most of their working life is going to retire with 16.7 per cent less superannuation than they otherwise would have, which is quite a hit," he said.

"Only a small proportion of this loss is going to come from a freeze in the superannuation guarantee contribution rates.

"There's going to be a 13 per cent drop resulting from the removal of the low income super contribution."

ABC

http://www.abc.net.au/news/2014-09-04/coalition-bush-electorates-likely-hardest-hit-by-super-changes/5718302

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