The super funds most at risk of Government's budget changes
Federal Budget changes will leave smaller superannuation funds more exposed than others to the superannuation changes dealing with accounts with balances lower than $6000, says superannuation analysts, SuperRatings.
Smaller funds will have almost 45 per cent more low balance accounts as a proportion of total membership than average funds, leaving them exposed to caps on fees for low balance accounts.
SuperRatings has assessed the effect on super funds from the Federal Government’s proposed three per cent cap on fees for super accounts with low balances.
Analysis reveals that smaller funds – those with less than $2 billion in net assets – have around 38 per cent of their accounts with a balance lower than $6000, compared to 26 per cent for all funds and 22.5 per cent for large funds.
Medium funds have between $2 billion and $10 billion in net assets, while large funds have more than $10 billion.
Nearly 34 per cent of all accounts held with smaller funds have balances below the $4000 threshold, compared to 22 per cent for the median and 19 per cent for the largest funds.
The SuperRatings findings follow on from a Rice Warner analysis that the level of cross-subsidisation within industry funds would mean they were more exposed to the insurance within superannuation changes contained in the Budget.
You support EVERYTHING this government does Adrianus. That is what paid trolls do. How does the Liberal Party pay you?
No, not everything. But when I think of the alternative then I have no choice.
Why would the Liberal Party pay me MICK? Are you insane? I have nothing to do with them.
No Adrianus, EVERYTHING!
Payment is better known as 'services to the Liberal Party'. You are not alone.
Sounds good, but is this a first step to getting the smaller funds swallowed up by bigger ones, then having bigger ones swallowed up by a "superfund" as mooted by Costello. Then the gov would have control of one big fund.
And just how will this help the "battler"? Surely fund members should be smart enough to consolidate their funds and reduce "lost accounts".
Being smart enough and taking action are unpolarised human traits. The ATO has $2b in lost super. Young people in Australia go from job to job more often than they did and retirement is something that happens in a future too far away to be concerned today. Some leave the country indefinately.
Do you think it would be poetic justice if those poor performing funds are the same ones with the bulk of small balance accounts? What then will come of them when they clean up their act? It would be a good thing to see them swallowed by larger , better performers. We have far too many Super funds for a country so small.
Yes....but the low balances are also a window into the working poor the current government wants and is fostering.
Agree Adrianus
low balance accounts are mostly those of young kids starting in the workforce or forgotten accounts as these people move jobs
with compulsory super incidences of low balance accounts should disappear but it’s important to protect them from high fees whilst they are small
You mean the working poor this governmetn has created by not allowing them access to real jobs.
Yep,I think he means the working poor and the students who struggle to supplement their income while at uni.
"Yes....but the low balances are also a window into the working poor the current government wants and is fostering." - MICK
MICK, one of the reasons I often find your posts confusing.
You begin with a feeling of loss that the "window of the working poor" is closing.
Then you focus your criticism toward the government which is closinig that window, but in your mind creating that window???
This is hurting my head.
When you think about it, the minimising of fees on low balance accounts by this government would normally be seen as a socialist change and appluaded by many marxists. I mean they are asking the high balance accounts to subsidise the low balance accounts. And normally you would get marxists like those above thinking this is a good idea. However, these are not normal times and we are not dealing with normal people.
They've just renamed my street Leningrad Strasse, LOL
Senior Liberal party staffer uses fake account to troll on social mediaExclusive by state political reporters Rhiana Whitson and Richard Baines
Updated 2 Mar 2018, 6:14pm
This is the 1 in a hundred they caught. This website alone has dozens although many currently not here at present. I wonder if the above is the reason why they are lying low lest they are caught out as well????
They are not here because there is a meeting at the Tavern. I'm sorry,.. you werent invited were you MICK??
Mick I'm sure both sides have these so called trolls.
This website has a lot of labor supporters, some of whom could well be paid party hacks
I've seen many a hishonest pro labor or anti LnP post designed to influence voters.
Adrianus - can you message me with the address. I would like to meet these people
No Adrianus. They have for the most part been gone a few weeks. I'd be willing to bet they are hiding for fear of being caught out. Interesting you are still here though Adrianus.
Olbaid - there are genuine posts both ways but the trolls are clear to spot. They trash and throw mud, have no credible evidence and do not debate on the merits or otherwise. That is what trolling is and the LNP ones are bad. I call them out for what they are and readers are likely fed up with me doing so but I need people to see the posts for what they are.
And to think that we're afraid to hang people because we think a 12 person jury could get it wrong when presented with all the evidence?
It's called survival of the fittest. If smaller funds can't stand the heat then get out of the kitchen. Bigger funds have economy of scale and the winners will be the depositors.
Really? Big funds are like Coles and Woolies. Look at the prices!
We are both aware of CEO rorts where they take and take and take with governments doing nothing to stop this crooked game and where shareholders are essentially locked out of pay deals. Guess who pays?
Smaller funds would have CEOs and Boards trying to keep their members. Bigger funds have CEOs and Boards who are plain arrogant because they keep their members via advertising and BS.
Surely that's what the Royal Commission wil be looking into MICK? In all fairness, not a lot has been changed with the administration of super funds since Keating, thankfully, legislated compulsory super. If smaller funds don't perform then the members will be moving anyway.
No one can satify Mick.
He is longing for Labor to get back in and do its usual.
Open the borders to refugees who live off welfare mainly due to no jobs for those here now etc and of course some come to live off and overwhelm our systems.
then labor alsways runs up debt as cant manage money - historically no socalist governments ever learned to manage the money nor the country correctly.
Hence all western nations are in dire debt TODAY. Which could well lead to a huge recession if debt called in or worse. Plus all are under pressure from economic refugees.
And nothing any other governments does is good enough for Labor voters like most here - as all are brainwashed or just cant be bothered to think things out for themselves.
Low wages are in today yes - but under Hawke/Keating the wages didnt rise much at all due to Labor's The Accord* which Hawke took donations from big business inn1983 1st one, then brought this in* to make sure businesses got a better profit from so called productivity changes - and this held back wages til 1996 and Howard government. Also led to jobs lost and others doing more.
Meanwhile in 1995 ACCC survey found the managements salaries etc had risen 60%.
FACT.
Also worse Labor lowered the tariffs in late 1980's and that led to huge losses of jobs as manufactucters having had better profits, now went overseas to China and other mainly Asian countries with lower wages then ours - and loss of the entire car industry caused by this. As well as other jobs.
And why Trump is doing what he is just now on tariffs to get back those jobs and even manufacturers for American workers.
Yet Labor is mocking him now - on this.
Rudd opened the borders over 300,.000 for each year and Gillard not much better but did reign in a bit.
Now Shorten would open the borders once again.
Labor has lost the plot.
Liberals are the best on offer of a bad bunch.
We need new parties who think and not just follow the old mates who run these parties in real terms. Its not the PM of the day - he is dictated too by back room boys.
Coal is the enemy yet Australia was built on it. And its built China and other nations who import our coal and our gas.
The Unions did one good thing lately which was to make government lisen, asnd won reserved gas for residential customers. Not just export the lot for high profits.
Now we need coal back to bring down price of energy.
Coal was filthy 100 years back but was cleaned up and still more can be done. Remember the pea soupers of fogs -most here are old enough to do so. But now its wood smoke as cant buy coal not even the smoke free treated coal.
Whatever all governments will always upset a few - but as they are there for the many - so be it.
And you are running the LNP lies Big Val.
Your post, for want of a better word, is the normal dishonest distortions and lies you and the other trolls always post. I'll put a few to bed so that you can sleep tonight:
1. Debt and money management - I am in raptures. Labor left $147 billion after the GFC years and your employer is currently up to $600 billion. Where is the money management here? Oh yes 2 Royal Commissions into Labor and unions. Do tell.
2. Brainwashed - just turn on the fake news and watch what happens around election time: Liberal good, Labo bad? Always. Beginning again.
3. Wages - under Hawke and Keating Australians could afford to live. Even with high mortgage rates. Your employer's antidote in a low inflation environment is to attack retirees, strip wages and conditions, cut wage increases almost zero for workers and give large tax cuts to the top. Tell me about wages you idiot! In case you missed the Dominoes CEO took home $37 million last year and Qantas CEO took home $22 million.
4. Coal - now that says it all. You are a LNP troll.
I might pass on your user name to the investigation into your MP who trolled the Labor candidate in Tasmania. It would be fitting to rat out you and your colleagues from this website.
Your post is pathetic Big Val. If you were a real AUstralian you'd have some shame but you are anything but. TROLL!
Yes I agree with what you have said Val
BigVal, that was a great post!
I agree, there's a lot of distrust for this Labor Party.
They are nothing like the Labor of old. They have been infiltrated by the extreme left, who will stop at nothing to cause conflict.
Victoria is a classic example and provides a window into the future of an extreme left government.
It's frightening.
A state which is bursting at the seems with population explosion, and desperately needing more infrastructure, but sadly a government which will pay $600m to stop a project. Victoria is a state in trouble.
All is not lost, we've seen first hand how a conservative government can rescue a state from their downward spiral. Tasmania is a classic example.
As usual the paid up member or is he actually a Polly in disguise, the man with all the credibility, there is one main contender on this site for employee of the year, as I have said in the past this is the guy that reckons he votes independent but sings from the Labor song sheet at every opportunity, you know the guy, the one that in the past claims he retired in his 50,s after being sick of working for slave wages, yet on those slave wages he was able to salt enough away to not have to claim a pension, keeping in mind that at the time he’s talking about a couple would have to have $1.2 million in the bank or assets to the same value, tell us your secret cobber there are a lot on this site who would love to know. I know I was well paid working 12 hour shifts on a blast furnace but even with salary sacrificing for the last 8 years before retirement I couldn’t get close to that figure .Time to fess up Mick who are you or who is it that you are working for, as for your constant claim about the debt of Labor and the current debt of the LNP you being a member of the opposition know only too well that a lot of the increased debt was due to things that Labor put in place before being kicked out, this is common practise by all governments and always has a long time effect on whoever takes over, all governments borrow and it’s not unusual for incoming governments to have to find a way to service those debts. Unlike you I do have a background in the union and was a member for 51 years and mostly throughout my life I have usually voted Labor, there is no way that I would ever vote for the current grub and his crazy green supporters.
ah our great labor mickey/tremor revealing the great virtues of his so beloved labor party, wonder why he or the ylc has not told everybody about the labor government in Victoria, 6 labor ministers have been caught rorting tax payers money's in the last elections ( the red shirts affair ) they were well assisted by the labor lower house members, most were in on the con, the victorian police is now involved after the ombudsman report recommended charges to be laid, labor took several high court challlenges, the cost of those court cases was paid for by the victorian taxpayer and have still not be recompensed by the labor party to stop police action, looking forward to ylc comments on these charges but especial from our labor mickey/tremor excuses, labor mickey/tremor to call anybody who don't agree with labor mickey/tremor a troll or being paid by the liberals, just wonder where labor's mickey/tremor's money is coming from, reading labor's mickey last comments in these column calling a contributor a rat, that by itself state clearly ylc's answer of being impartional
The normal government post straight from party HQ. You can always see an election coming via the attacks on Labor and unions which hold littel water. You omitted to mention Liberal Party MP McGuire who conspired with Chinese developers. Funny that. You also omitted to mention the way the prime minister vilifies Labor all the time because the party refuses to do what he dictates.
I'll defend the right to proper government rather than the current developing dictatorship. I'll defend the rights of ordinary citizens to get a fair go and get a fair share of the national wealth.
You heemsjerk are an offensive right wing oaf working for the big end of town trying to steal the wealth of the nation. Lets have some more tax cuts for rich people and new taxes for wworking Australians just trying to exist.....
I look forward to a widening of the investigation into political trolling. Liberal Party already caught out but his is the tip of a very large iceberg. Your day will come!
MICK, this is about Superannuation. Shouldnt you be off somewhere working on a new Mediscare campaign?
ROFLMAO, you guys need a psyche couch. Tell me why would any political party Labor, Greens or Liberal hire a bunch of senior citizens to promote them on a forum for seniors??
It's so funny. Nope guys, it's just a group of old frts letting off steam and enjoying themselves.
How do you know who is a senior citizen and who isn’t
anyone can join and post
Salaam olbaid, peace be with you.
What you say is quite true, it's an open field but I can smell a rat anywhere!
10,683,838 people living in the Australia in 2016 were employed, of which 62% worked full-time and 36% part-time.
From that fact, Adrianus is quite correct in saying that we have too many Superannuation funds for that small population.
We are spending too much money on administration of some 500 Super Funds
I look forward to a widening of the investigation into political trolling. Liberal Party already caught out but his is the tip of a very large iceberg. Worry when you are found out. I look forward to reading about it.
Hi Suze, that's right.
Members between the age of 26-55 can have several super accounts. This is totally unecessary and only serves to promote the proliferation and profiteering of super funds.
People are fed up with an inadequate system which is, for the most part, self regulating. I dont think Keating should have accepted this self regulation pledge from the funds during his party's 1996 changes. The enormous growth of the SMSFs is a sign that aspirational Australians have had enough of the sponging of the Superannuation Top Feeders. Its not difficult to see who the top feeders are in this industry. They are the ones opposed to reforms. These reforms only benefit the bootom feeders.
I dont think it's fair to members that their superfund is a major sponsor of a football club, or donates members' money to charities. If my super fund did that I would drop them in a heart beat.
I'm sorry, but I'm on the side of the battler on this one. Why should the cost be borne by the member with the low balance??
This is a great intiative by the government and will result in super funds being a little more proactive in consolidating member accounts. Who knows? It may also have the effect of reducing lost accounts??