EYE-BALL’s Guru on – Superannuation 2013-14 – the Government’s new Slush Fund – Proposed Changes show SWAN and SHORTEN’s stupidity –
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– Superannuation 2013-14 –
– the Government’s new Slush Fund –
– Proposed Changes show SWAN and SHORTEN’s stupidity –
| Author: EYE-BALL Guru | 5th Apr 2013 |
|Tdebate on Superannuation has raged for decades, and as each Government comes their version leaves an imprint. The replacements then come again and go about trampling all over the previous version to implant their own versions of an equitable share of the tax burden – i.e. fairness – Hah … crapola I say … read on …
There should be such a thing as ‘sacred ground’ – something Governments should never be allowed to tamper with.
That ground has to be respected and forever be off-limits to any Government looking to tamper with the tax collect. Superannuation by the very ALP definition and reasoning why it introduced the scheme in 1992 has been altered 53 and now a 54th time since the Guarantee was introduced in 1992.
Lets take a look at some of the reasoning and process’ superannuation has had to deal with along the way.
Post 1992 Superannuation:
The charts below – [sourced from Reserve Bank of Australia statistical database series (Budgets)] – will help give a perspective on the Federal superannuation tax collect since 1996. Further research to pre 1996 figures is ongoing along with data requested for the pre 1992 period – this post could not wait … the information contained herein is too important.
The Superannuation Act has been tinkered with for 20 years an now in 2013, Treasurer Swan and Superannuation Minister Bill Shorten have come up with a Gillard inspired socialist platform that reeks of ‘class warfare’, and something they believe will solve all the answers to future retirement planning and needs.
This pair of boofheads place themselves as smarter then all those that went before them.
What would make anyone believe this new proposal has better answers, better solutions, better outcomes, and is better policy?
Macro Superannuation Rules post 1992:
Pre 1992 Superannuation:
APRA – [Australian Prudential Regulatory Authority] was founded in the early 2000’s … its primary role is regulatory supervision over the financial markets and players – i.e. [Banks, Merchant Banks, Stock Brokers, Fund Managers, Superannuation, and the like] – who partake in the market.
APRA have a broad history in how Superannuation evolved since the 80’s – linked here – and states in part:
If anything is true, then the past 20 years have shown that superannuation was always a work in progress. Swan’s and Shorten’s version delivered today is a continuation of that stupidity.
In any market forum discussion on investment – any forecast returns on a 40 year investment/annuity is no sure thing. For example –
The World has no capital left other than pension and superannuation funds – the life savings of a global population left to the mercy of corrupt an inept Governments who for 40 years have lived on the hog.
When Gillard says – ‘you can trust us with your super’ … you should be looking for ways to get your super into your own hands and as far away from Government and regulatory oversight as possible.
John Howard erred in hindsight when he opened the doors to allow up to $1 million of individual Superannuation contributions in the 2007 financial year. Some $50 billion poured in as reflected by the spike in superannuation tax revenues in the graph above.
It was a sign of an economy doing well with debt virtually zero, and budget surplus’ the norm. How Labor and the GFC changed all that …
Howard had no prior warning … nobody did unless you were a market operator and ben calling the big thud since 1987 … finally … and an even bigger thud is coming …
In addition … the $60 billion Costello and Swan gifted from the taxpayer owned Telstra sale to the ‘Future Fund’ – all to plug a parliamentary superannuation ‘Ponzi Scheme’ – would never have happened had they had a crystal ball to tell them the GFC was around the corner.
That is the point – over a 40 year term investment – who knows what will be law and financial security at the end – it’s an absolute lottery to gauge the value of the cost of living in a society 40 years hence – any body who thinks they can is a bigger dunce than either Swan or Shorten.
Hell 40 years ago I started work at the Commonwealth Bank – my salary was $2,200 p/a, a three bedroom high set new house purchased three years later cost $31,500. My Bank Manager boss was earning $3,900 p/a. The QLD State Manager on the Bank earned $7,500. The Big Chief earned $10,000 p/a. You work out the multiples – a Bank CEO today earns around $15 million with heaps of additional perks per year. That is a multiple of some 1500 …
The same house is valued at $400k – a multiple of 12.7 …
It just does not work and for Politicians to stand up 54 times since 1992 and tell you that they are tweaking the Superannuation rules – you have every right to spit in their face.
To be honest – Keating sold the superannuation deal in part because he wanted access to the superannuation tax revenues up front rather than wait for the retirement of the superannuant. All the compound investment income that would have be earnt by the superannuant on that 15% now goes to the Government.
Any debate on the real tax on superannuation has to factor in the compound earnings the Government now earns on post 1992 superannuation tax it collects. In the extrapolation – linked here in a previous post – the value of an employee working 40 years at an average income of $50k, with a 10% annual return on his super paid fortnightly, the full value before the 15% tax is collected is $2,393,137.85 – see calculation below … [assuming the 9% contribution of salary remains constant.]
Now apply the 15% tax factor and that value diminishes to –
Now work out the compound value on the difference – this will give the compound earnings on the 15% tax paid up front:
This has to make you and everybody else second guess the value of Superannuation and who derives the best dividend under the post 1992 arrangements.
Somebody earning the same income average under current tax laws pays $3,572 plus 32.5c for each $1 over $37,000 – a sum of $3,995.
If you were to divide the $664,095 from the above calculation by 40 years, the annual tax collect by the Government on your 15% of super handed over represents – $16,600 per year.
That is four (4) times the annual tax they would pay out of their regular income – that is the importance of compound earnings … and this and past Governments wanted in on this 20 years ago and have been ripping off Australians ever since.
You ask yourself do they deserve more of your funds to pay for wanton spending programs and Parliamentary Superannuation Ponzi schemes?
[There might be some holes in the above numbers basis the 10% return, and fortnightly compound factor – however they are in the ballpark and should not be discounted in their reality.]
The Government are worse than Bank Robbers – they are robbing your blind and using the law to do so.
Swan and Shorten’s New Superannuation Rules announced today are Linked here
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The EYE-BALL Guru …