Writing in the Australian today, opposition Treasury spokesman Jim Chalmers said this:
Already the $2.8 trillion pool of savings is bigger than our gross domestic product, and bigger than the GDP of all but seven countries, just behind India but bigger than Italy and growing fast.
Much of that wouldn’t exist without compulsion, but remarkably it’s still not enough.
Much of the compulsory superannuation pool would not exist without compulsion. Now that’s an insight.
Hey Jim. The $2.8 trillion pool would be even bigger if the compulsory level was 100% of salaries.
Rather than having some sort of measuring competition to argue that the Australian superannuation pool is bigger than whatever, why not try to explain why it is good? If you want to compare sizes, perhaps you start comparing the size of the superannuation pool with the cumulative size of ALP budget deficits.
One of the key questions that was not asked at the Hayne Royal Commission is why. The behaviours identified at the royal commission occur in other countries. But why are these behaviours institutional and systemic in Australia.
Could it be that one of the key drivers of misbehaviour is compulsory superannuation because for as long as a business or business segment is guaranteed revenue flow irrespective of the quality of its product and irrespective of how it treats its customers it will not be concerned with its quality or its customers.
If after all these years the superannuation industry cannot convince citizens to invest, even with all the incentives on offer, then there is something fundamentally wrong with the offering dear Jim.