Investment Magazine
 

Super and consumer experts debate the SG increase

  • 2 November, 2011
  • 0
  • print

The Federal Government’s plan to lift the Superannuation Guarantee (SG) from its current 9 per cent to 12 per cent unsurprisingly has widespread industry support. But it might be a surprise for some in the industry that the plan does not have universal and unequivocal community support.

The super debate begins

Legislation giving effect to the increase was introduced into Parliament today.

Opposition to the move predictably comes from the other side of politics. The Shadow Minister for Financial Services and Superannuation, Mathias Cormann, was involved in a Senate Estimates hearing on the day of a roundtable hosted by Investment Magazine and sponsored by Challenger, but the Opposition Leader’s chief of staff issued a statement.

It said: “As you know, the Coalition’s position is clear and we do not support the super increase funded from the mining tax.”

But reservations also have been expressed by those representing low-income-earners and workers with broken employment patterns (particularly women) – and out in the electorate, raising the SG is far from the sure-fire election winner some think it should be.

Eva Cox, the well-known feminist and convenor of the Women’s Equity Think Tank (WETT), is another opponent of the plan, but purely on equity grounds.

“Why don’t I support the increase? Because, I think the system itself is unfair because it puts an enormous amount of money into the pockets of the rich, and much less into the pockets of the less well off,” Cox says.

“I can’t see any reason why public money should be forgone on that sort of basis, and I think putting it up to 12 per cent is actually not going to do anything about the equity issues; it’s just going to make them worse.

“I’m a long-term feminist, and convenor of [the] Women’s Equity Think Tank, but at the moment I’m also attached to the Aboriginal Unit at UTS [University of Technology, Sydney], and I don’t think it’s going to do a damn thing for people in that area, either.”

The general philosophy behind increasing the SG is simple, says the Minister for Financial Services and Superannuation, Bill Shorten.

“There is little benefit in working for a long time and retiring poor,” he says.

Small business might be expected to oppose the plan too, but the chief executive of the Council of Small Business of Australia (COSBOA), Peter Strong, says the council frankly does not care if the SG is 9 per cent or 12 per cent or even 15 per cent; what COSBOA objects to is the administrative burden the SG already places on small business, which will not be alleviated.

Pages: 1 2 3 4 5 6 7 8 9 10

© Copyright: Whole articles from this website and newsletter cannot be reproduced without permission from the editor. If you wish to publish introductions to any article please ensure that it links to original content site www.investmentmagazine.com.au, and that it shows clear attribution to Investment Magazine, plus author name and date. Failure to abide by this request will be considered a breach of copyright and legal action will be taken.

Vote
Is core property and global infrastructure heading for a price bubble?
 
in News

AMP Multi Asset Group structure finalised

AMP has finished the centralisation of its fund manager teams, creating four separate chief investment officer roles under the leadership of Sean Henaghan. ... [more]

in News

Future Fund creates twin leadership roles

The Future Fund has promoted internally to fill its chief investment officer role, while passing the responsibility for portfolio risk setting to another ... [more]

in News

Kinetic Super stands figures on their head

Kinetic Super has defended its cost structure from analysis which shows it having the highest operational costs of all superannuation funds as a ... [more]

in News

Legalsuper seeks first ever CIO

An experienced investment professional seeking a better work-life balance is being sought by Legalsuper as its first ever chief investment officer. The $2.3 ... [more]

in News

RiceWarner: beating annuities “easy” for super funds

Superannuation funds can offer retirement accounts that easily exceed the income from annuities, believes Rice Warner. Michael Rice, chief executive of the actuarial ... [more]

in

Average operational costs per member rising

Operational costs are on the rise and on a per member basis have nearly doubled in ten years, shows analysis carried out by ... [more]

Widespread call for hybrid TPD/IP insurance cover

Funds, insurers and consultants are calling for the creation of an insurance product that sits half way between TPD cover and income protection. ... [more]

in News

Why does Sunsuper invest in hedge funds?

Sunsuper’s hedge fund program has comfortably beaten global equity returns after fees since 2007. To Bruce Tomlinson, portfolio manager for Sunsuper’s $1.6 billion ... [more]

Funds face legal threat for ignoring member requests on carbon assets

An Australian superannuation fund is being singled out for possible legal action over a failure to engage with its members on the risks ... [more]

Leeanne Turner is FEAL Fund Executive of the Year

Leeanne Turner, chief executive officer of the Motor Trades Association of Australia Superannuation Fund (MTAA Super), has been named the fund executive of ... [more]

Five reasons why the Grattan Institute threatens superannuation as we know it

The Grattan Institute report, Super sting: how to stop Australians paying too much for superannuation, has caused much consternation in superannuation. Some have ... [more]

AustralianSuper claims growing influence on ASX200 governance

Superannuation funds are winning their efforts to make Australian companies adopt long term thinking, according to Andrew Gray, investment manager, governance at AustralianSuper. ... [more]

in News

David Murray profile: superannuation put on trial

How worried should the superannuation industry be by the contents of the Financial System Inquiry’s interim report? The comments made by David Murray ... [more]

in News

Funds and ASX companies to get to know each other better

The Governance Institute of Australia has launched Principles and Guidelines for the interaction between institutional investors and ASX listed companies. At the launch ... [more]

in Opinion

Burden of proof lies with funds over fees

David Murray told me it was “clear” the return from active managers is not worth the extra cost when talking to me the ... [more]

in News

Only one fund saving millions through tax efficiency

This week marks the two year anniversary of Qantas Super becoming the first Australian superannuation fund to implement tax managed centralised portfolio management. ... [more]

in News

Unisuper considers passive benchmark as Murray review response

Unisuper would consider benchmarking its returns after fees with a diversified passively run portfolio to justify the use of active management. The proposal ... [more]

in News

Future Fund innovates on performance fees

The Future Fund has created a novel way to structure agreements with managers on two of its Australian airport investments to improve alignment ... [more]

in News

Murray offers no quick fix on retirement income

The removal of impediments to the creation of retirement income products should not go ahead until there is greater consensus on what purpose ... [more]

Heads of merged NSW funds named

Mark O’Brien has been picked to head portfolio management for the amalgamated $60 billion New South Wales government funds. O’Brien, who is currently ... [more]

Michael Dwyer calls for industry unity to save group cover

The survival of group insurance depends on funds, trustees, regulators and insurers working as a team, says Michael Dwyer, chief executive of First ... [more]

in News

ASIC: super “fee inconsistencies” not good enough

The Australian Securities and Investment Commission is urging superannuation funds to draft their own set of fee transparency guidelines ahead of its own ... [more]

in News

Stress endemic among super executive teams

Executives in financial services and superannuation funds  are “chronically stressed” and internal teams are showing wear and tear according to Kamal Sarma, a ... [more]

Sunsuper CEO pledges to lower fees

Scott Hartley has pledged lower fees for Sunsuper members in a bullish statement on the fund’s ability to become top choice for corporate ... [more]

in News

Superpartners put under review

AustralianSuper, Cbus, Hesta, MTAA and Hostplus are conducting a review of their reliance on Superpartners as the sole source of IT for investment ... [more]

in News

REST credits insurance rethink as they scoop top fund award

REST Super scooped Super Fund of the Year, in large part due to pioneering a new insurance offering for members said Damian Hill. ... [more]

in News

QSuper wins pension fund of the year

QSuper has been chosen as Pension Fund of the Year for the second year running at the Chant West | Conexus Finanical Super ... [more]

Super fund award winners named

The winners of the Chant West | Conexus Financial Super Fund Awards have been announced at a ceremony at Ivy Ballroom in Sydney, ... [more]

in News

LUCRF to offer free SuperStream services to employers

Greg Sword the outgoing chief executive of LUCRF has revealed how his fund is arguably the best prepared in the industry to take ... [more]

in News

MetLife halts annuity product: LGS back to square one

Met Life has scaled back its variable business in Australia, ending its nascent deal with Local Government Super, but staying committed to its ... [more]

in News

AustralianSuper member activism on the rise

AustralianSuper is seeing increasing member enquiries on how their super is invested, as funds generally report greater member engagement. Hilary Spear, head of ... [more]

in News

Cbus conducts data leak investigation

Cbus is conducting an investigation into allegations printed in the Australian Financial Review that member details were secretly passed to a union boss ... [more]

in News

Mark Delaney fears a stampede out of equities

A market wide deleveraging out of equities could be the next big investment risk facing superannuation funds, Mark Delaney, chief investment officer of ... [more]

The most common questions on securities lending answered

The heads of investment operations at QSuper and Sunsuper, plus representatives from NAB Asset Servicing and senior consultants from Deloitte and Dymond Foulds ... [more]

in News

Greg Nolan to step back from full-time role at CareSuper

CareSuper has announced Greg Nolan is to stand down from his role as general manager of investments at the end of the year. ... [more]