Super Blooper

[marvenger]

Alan Kohler article. http://www.businessspectator.com.au/...cument&src=rab

Imagine if Australia’s 9 per cent superannuation guarantee had been a tax, instead of just the threat of a tax.

Imagine if, instead of forcing employers to hand over 9 per cent of all salaries to be invested and lost by anything calling itself a super fund – sometimes managed by smart, careful people, and sometimes by reckless idiots – that money had been simply collected by the ATO [Australian Tax office] and given to a forerunner of the Future Fund.

Australia would now have a $1 trillion sovereign wealth fund – the largest in the world – and really would be sitting pretty, not just saying it.
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It seemed like a good idea at a time when privatisation was the thing to do and government management of anything was derided. But insufficient care was taken in regulating what was done with the money and so a lot of it was wasted on fees or lost on poor investments. And these days government management is regarded as a lot better than what has been going on the world of private banking.

[thunderdownunder]

Re: Super Blooper

It wouldn't have mattered where the money was placed as it would have to be invested in some asset class, somewhere, to earn a return.
"all Boats rise and fall the same on the tide" and the tide has turned - Future funds share in Telstra is a prime example. The super management fees are a killer and must be addressed as it is a gravy train for some but not the end users. Imagine the hide of the mongrels taking 2% -2.5% out of returns to members of 5% to 6% (long term average) My god thats a 30%+ money for Jam scam. This WILL be addressed in the budget - cause as you know Governments hates compeating thieves

[marvenger]

Re: Super Blooper

the private super industry did generate a lot of speculative froth and spectacular fees, eg storm financial, various dodgy mbs's, from this guaranteed source of new funds to manage. Kohler's just saying a lot of money would not have been wasted if you weren't forcing it into private hands from people who don't know what they're doing. Just a good jibe at all those who think private always knows best. The private industry didn't know what the hell to do with it all, aust needs better infrastructure and i think gov is the only entity with the scale and willingness to make the investment.