Whose money is it?

This comes from Treasurer Josh Frydenberg:

“Superannuation is a massive pool in savings that should be harnessed more for domestic investment,”

“And I don’t care if they are industry funds or retail funds, I would like to see them both put to work on domestic infrastructure assets more than they have been.

Does the return on investment matter?  Does the benefit to the fund members matter?  Apparently not in both cases.

If the Government wants Australian superannuation investors to invest in Australia, perhaps they give mind to the disincentives to investment in Australia.

You know, little things like red tape, green tape, ASIC, APRA, ACCC … the regulatory and compliance industrial complex that leeches of Australia’s productivity.

As Andrew Liveris said, we need a red carpet economy and not a red tape economy.  Unfortunately Mr Liveris overstates it when he says Australia has a red tape economy.  We have a red light economy.

Making such pronouncements from the top of Canberra Hill, about investing in Australia, is really easy.  Actually doing the work to make Australia more investment attractive, including cutting taxes, cutting red tape and getting the regulators under control … well that requires work and doing the work of governing takes time away from our political masters’ ability to front the ABC and SkyNews.

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24 Responses to Whose money is it?

  1. Rusty of Qld

    Tafkas: It boils down to one of two things(or both)as always.
    1.They are brain dead moronic gutless wonders.
    2.They are evil venal self seeking bastards.

  2. shady

    Super funds are investing in windmills and solar panels and once the subsidies stop members are going to be the big losers, but the funds will still get their management fees so it all works out great for them.

  3. Tim Neilson

    shady
    #3499632, posted on June 30, 2020 at 11:16

    Taxpayers will bail out the industry funds. (Not so sure about retail funds, but they don’t seem to have gone so heavily into “renewables” anyway.)

    Except if once the subsidies stop happens only on crashing of the grid and consequent societal collapse – then the industry fund members will be as rooted as everyone else.

  4. Cynic of Ayr

    Superannuation money is owned by the Superannuate. (Is that the right word for “owner of the money?)
    Frydenberg takes money from people as Tax. A myriad of Taxes.
    He also takes Tax from the Superannuation Funds, either directly or indirectly. Consider the indirect Tax as the income tax taken from workers in the Superannuation Industry, whose wages are paid for by the Superannuates.
    It would interest me to know just how much tax is raised from super deductions, paid into super accounts. It would be significant, when you add in the capital costs of the funds – cars, offices, power, fuel.
    Superannuation is supposed to, and was promoted as, the solution or replacement to the Aged Pension. All workers would enjoy retirement funded by themselves, via a their Super Money.
    That’s changed now, hasn’t it?
    Frydenberg wants the money. He’s blown all the money he had, and then blew more.
    The Super Funds are a pit of money that Frydenberg and others like him, regard as their money, – unpaid tax if you will – and if taxing it more is a bit dangerous at the ballot box, then the second option is to “borrow” it from the Superannuates at an interest rate determined by the borrower!
    Frydenberg, being a snake, knows full well that whoever he shafts with this, Labor will go along with it. After all, it’s Labor policy too.

  5. NoFixedAddress

    Rusty of Qld
    #3499630, posted on June 30, 2020 at 11:14 am

    Tafkas: It boils down to one of two things(or both)as always.
    1.They are brain dead moronic gutless wonders.
    2.They are evil venal self seeking bastards.

    I’ll go with No. 2 thanks Rusty of Qld.

  6. Pyrmonter

    Yet another coalition own goal. (Or, is it an application of the median voter theorem?)

    A clear, more or less un-used coalition fall back campaign policy would have been ‘Labor and the Greens are coming for your super (and please ignore our tax tinkerings of the past)’. Now muted. Joshy has the strategic nouse and experience of the Austrian General Staff in 1914.

  7. Isn’t the business of superannuation funds to make money, not lose money? The latter, I thought, was the business of government.

  8. H B Bear

    Superannuation is one of the few big piles of OPM left. Look out.

    You would have said the same thing about property a few years ago but that log got hollowed out a while ago.

  9. Rohan

    I wonder if the Hon treasurer will reposnd to my email…

    Dear Mr Fydenberg,

    I note with interest your coments in the AFR today where you were quoted as saying:

    “Superannuation is a massive pool in savings that should be harnessed more for domestic investment,”

    and

    “And I don’t care if they are industry funds or retail funds, I would like to see them both put to work on domestic infrastructure assets more than they have been.”

    I’ll give you the whisper you quasi-socialist clown masqureading as a conservative: It’s not your money!

    Comprende amigo?

    My superannuation balance is not your cash cow. So I’ll repeat it again you Comunist Manifesto loving lunatic:

    IT’S NOT YOUR MONEY.

    Over to you sport.

  10. deplorable

    When I was younger with a young family to provide for the government of the day raised interest rates to such an extent that we were paying 16% interest on our house loan. Being self employed in the building industry we suffered the ups and downs of builders going broke about every 7 years costing us thousands and having little work in the downturns. No handouts given by government no help to keep apprentices employed nothing. Once the money we had saved ran out so did the employment of apprentices. In this new world of no recession in 30 or more years we worked hard in our final years before retirement achieving a modest amount in our SMSF that just excludes us from a part aged pension. Now the lowest interest rates mean no interest on cash and the amount held in blue chip shares is returning little in dividends not to mention dramatic drop in share values.
    Now as a couple who are self funded retirees we receive little in income from our cash and investments . The government support of those who are self funded in retirement is pitiful when compared to aged pensioners, and all the other handouts currently offeredo. They cannot even extend the council rate subsidy to a group that place no financial burdens on the governments but still pay taxes every day.
    The bludgers and scammers in society who contribute nothing appear to be rewarded by government. All I can say is watch out for the dead hand of government upon your super because they are going to have to raid it get out of the position they have got this country into.
    We are lost.

  11. NoFixedAddress

    When all that RE is whirring around and blistering down the gold plated poles and wires for 5% of the time we will hardly have access to our money anyway.

    Perhaps we can use shells Mr Frydenberg.

  12. Scott Osmond

    In this household we call him Frydenberg the fuckup. Malice or bovine stupidity possibly both. Super is a cash cow that both sides of politics won’t be able to help themselves grabbing. As the consiquences of reckless spending become unavoidable the parasites and looters will have no choice if they wish to survive.

  13. Neil

    What would they invest in? WE don’t make much stuff here anymore. I stopped buying bottled garlic cloves in brine from ALDI because it was made in China. So i started buying fresh garlic made in Australia from ALDI. I was walking past a grocery store and noticed some garlic half the price of ALDIs. I thought that strange because ALDI is usually very cheap. Then i found out why. The garlic was made in China. So we are even importing our foodstuffs.

  14. Professor Fred Lenin

    Now the super fund money belongs to the government ,we will take all savings and investmet accounts as they are mot being usefully used by the politicians . This will keep the political aparat going for more years when thats all spent and wasted God knows what we will do but I will be retired on a huge pension and all the money I got in politics in another country so I dont give a shit.

  15. PB

    So does this mean that the Super Funds are really taxation organisations, because if return on investment is subordinated to supporting Government policy wishes, then they aren’t a Super Fund.

  16. wal1957

    Never let a politician near OPM.
    Kerry Packer response to tax and governments will never be out of date.

  17. Diogenes

    Superannuation money is owned by the Superannuate

    Says who? As you correctly state it is collected as a tax, and it is my understanding (happy to be proven wrong) that this is the constitutional reason the feds can make the laws they do controlling it. It becomes a very short step to argue, it is collected as a tax and is regulated on the basis that it is a tax, that it really does belong to the government.

  18. Pickles

    All your munny bilong masta.

  19. John A

    You know, little things like red tape, green tape, ASIC, APRA, ACCC … the regulatory and compliance industrial complex that leeches of Australia’s productivity.

    And you know, BIG things like almost zero interest rate as the benchmark for investment returns.

  20. Gavin R Putland

    Compulsory super should be either invested in new assets or abolished. Otherwise it’s compulsory participation in a zero-sum game.

  21. yarpos

    One wonders what Josh thinks the money is already doing? sitting in someone piggy bank ?

  22. miltonf

    Sounds like the start of the softening up to take it off us. What a waste of space is Fraudenburg.

  23. Diogenes

    Further to my last watching ACA ( I know) , but their resident lawyer says that when you cark it, super is not part of your estate and the trustee can literally pay the money to anybody.
    So it really yours ?

  24. Bruce in WA

    Touch my money and “I will look for you, I will find you and I will kill you.” (NADT)

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