Accepted theft never charged or punished
According to an analysis conducted by Industry Super Australia (ISA), unpaid and underpaid superannuation has cost workers more than $33 billion over the past seven years.
“Only by aligning payment of super and wages will the government protect millions of Australians missing out on what they’re owed and falling off the unpaid super cliff,” ISA Chief Executive Bernie Dean said.
Source: Payday super touted as solution to stolen funds – Michael West
Australians are getting a rude shock as they open their superannuation statements. For most, it was a rare year of losses. Only three funds ended in the black. Callum Foote and Michael West investigate super returns and the best performing fund of them all, Hostplus.
Is Australia’s top performing fund smoke and mirrors? Hostplus, Canva and the year of super losses – Michael West
Underperforming Funds Named and Shamed A new annual performance test will compare the rolling 8 year net returns of each MySuper product with what it should have attained based on its stated investment strategy. Critically, and for the first time, the benchmark used to calculate net returns is codified in the YFYS regulations, so all funds must adhere to the same calculation methodology. This both eliminates the ability for funds to ‘game the numbers’, and allows for an apples-to-apples comparison across different funds. Funds that underperform their designated benchmark by 0.5% per year or more in two consecutive years will have to inform all members in writing, and will be barred from accepting new members while their performance remains sub-standard. The tests will, in effect, be Key Performance Indicators (KPIs) for super funds. Based on the following chart from the Productivity Commission final report, there will be many APRA-regulated funds that find themselves falling short of the mark.
Paul Keating and Kevin Rudd warn the Coalition government will destroy the superannuation system if it bows to pressure to dump legislated increases in employer contributions.
Paul Keating, Kevin Rudd warn government seeking to destroy superannuation
“We estimate that the excess fees and charges and underperformance in super is about $12 billion a year,” RMIT University Associate Professor Michael Rafferty told the ABC.
“In other words, the rip-off in wealth management is about three to four times the rip-off in banking.”
A retired accountant shocked himself when he calculated how much tax very high income earners can avoid by fully utilising superannuation.
Superannuation has arguably become a tax shelter for the wealthy. But here are three reforms which could re-introduce fairness.
Source: Three superannuation reforms that would promote fairness and equity
Chris Bowen said the government’s changes to the FoFA regulations had scored a ”daily double” by reducing consumer protections from unscrupulous financial planners and increasing red tape.
”They’ve emasculated the requirement to work in the best interests of the client,” he said.
Now, independent Senators Nick Xenophon and John Madigan have introduced two amendments to tackle the worst and arguably most potentially dangerous aspects of the Coalition’s reforms – namely general advice and changes to the best-interests duty.
Considering the banks and AMP own or control up to 80 per cent of the financial planning industry, as Nick Xenophon put it,
“The financial services industry is big enough and ugly enough to look after itself and … consumers are the ones government should be providing with certainty and adequate protections.”
But hey…we’re open for business. Caveat emptor.
Hockey in his eagerness to do something right for a change tripped and found himself licking Palmer arse. He’s delayed the increase in compulsory super from 9.5% to 12% for another 7 years. Of course Joe magnanimously said the workers will see that extra money in their pay packets. A straight out lie because employers are not obligated to pass it on.
Tell me an employer that will pass on a 2.5% wage increase when they are not obliged to. His man will go down in history as little more than a waste of space. Please explain Mr Treasurer
‘If it stays with employers the best way to grow superannuation in Australia is to have a stronger economy because ultimately because superannuation is invested back into the economy’
If the employer keeps the money Joe it’s not my super Joe it’s his new Merc or his overseas trip. It’s the Christmas present my wife or kid just might miss out on. Maybe the school excursion. What utter horse shit is the man saying the improvement in my employer’s life style is good for the economy. That’s as Liberal as you can get and Abbott is running the same line on this.
olddogthoughts 