Vital signs. Our compulsory super system is broken. We ought to axe it, or completely reform it

Written by Richard Holden, UNSW. The just-announced inquiry into Australia’s retirement income system ought to be anything but run-of-the-mill. Taking place 25 years after the introduction of compulsory superannuation, it provides an opportunity to either fix a broken system, or discard it as failed experiment. Incremental reform won’t work. There’s a budget problem The first… Continue reading Vital signs. Our compulsory super system is broken. We ought to axe it, or completely reform it

Grattan Institute superannuation figure $50,000 off the mark, claims ISA

Industry Super Australia claims the Grattan Institute has produced “flawed” modelling to support a call for the Super Guarantee rate to stay at 9.5%. The Grattan Institute’s modelling indicates that increasing the Super Guarantee rate to 12% will cost workers $30,000 over their lifetime. But Industry Super Australia says this is almost $50,000 off the… Continue reading Grattan Institute superannuation figure $50,000 off the mark, claims ISA

12% super rate vital to women’s retirement, even if widens gender gap

Raising the Superannuation Guarantee rate to 12% is key to improving the retirements of women, despite concerns it could widen the super gender gap, says the Australian Institute of Superannuation Trustees. A debate around raising the Superannuation Guarantee rate is ongoing, driven in part by a report from the Grattan Institute calling for the rate… Continue reading 12% super rate vital to women’s retirement, even if widens gender gap

Grattan Institute superannuation findings “broadly consistent” with Treasury

The findings in a controversial report from the Grattan Institute are broadly in line with internal Treasury analysis, documents recently released under FOI reveal. A Grattan Institute report released late last year, called Money in retirement: more than enough, found that most Australians would have enough money for retirement, and so recommended against increases in… Continue reading Grattan Institute superannuation findings “broadly consistent” with Treasury

No evidence increases in Super Guarantee comes out of wages

There is “no clear empirical evidence” that increasing the Super Guarantee rate directly lowers wages, according to research by the McKell Institute. As the Institute notes, there is currently a “live debate” over increasing the Super Guarantee rate. The SG rate is currently legislated to gradually increase from its current level of 9.5% to 12%… Continue reading No evidence increases in Super Guarantee comes out of wages

‘Dirty dozen’ of Coalition MPs trying to blow up super system: Labor

A Labor shadow Minister has claimed there is a ‘dirty dozen’ of Coalition MPs with the mission of “blowing up” the superannuation system. The “plot of these conspirators was undisclosed” during the election campaign, Stephen Jones, Labor’s Shadow Assistant Treasurer and Shadow Minister for Financial Services told the Financial Services Council Summit. Jones said the… Continue reading ‘Dirty dozen’ of Coalition MPs trying to blow up super system: Labor

Australians reject slower increase to Super Guarantee rate, survey finds

Australians have “overwhelmingly rejected” an attempt to slow or freeze increases in the Superannuation Guarantee, says Industry Super Australia. A survey, released by Industry Super Australia, found 87% supported the Super Guarantee rate rising from 9.5%, with some preferring either 10%, 12% or 15%. The Super Guarantee rate is currently scheduled, in legislation, to increase… Continue reading Australians reject slower increase to Super Guarantee rate, survey finds

Low income earners should be able to opt-out of Super Guarantee: Liberal Senator

A Liberal Senator has argued for allowing people on low incomes to opt-out of receiving Super Guarantee contributions – instead receiving the money directly – at a time when senior members are ruling out changes to the Super Guarantee. Liberal Senator Andrew Bragg has used his first speech to the Senate to argue that people… Continue reading Low income earners should be able to opt-out of Super Guarantee: Liberal Senator

Treasurer also rules out slower Super Guarantee rate increases

The Treasurer and Minister for Finance have clearly ruled out changes to the Super Guarantee timetable, though they are yet to be joined by the Prime Minister. The Treasurer has joined the Minister for Finance in ruling out changes to the timetable for increases to the Super Guarantee rate. Earlier in the week Labor asked… Continue reading Treasurer also rules out slower Super Guarantee rate increases

Finance Minister rules out changes to Super Guarantee increases

The Minister for Finance has ruled out changes to the timetable for Superannuation Guarantee increases, something which the PM and other senior Ministers have refused to do. A senior member of the Government has ruled out slower increases to the Super Guarantee rate, following growing speculation that backbenchers will drive the Coalition to stop or… Continue reading Finance Minister rules out changes to Super Guarantee increases