Superannuation, Future Funds and Sovereign Funds are effectively a tax on businesses and individuals with exorbitant management fees and offshore investment rife. Trillions in assets – billions a year in fees and wasted insurance premiums – value of the tax concessions far outweighs the reduction in Age Pension outlays.
The Government should provide pensions and disability income at responsibly generously levels, with private superannuation available to those who chose it, at their own cost without tax concession, to augment their government pensions.
The fairest retirement policy is for the Australian Government to provide a pension to every individual who is aged 65 and over. Pay it at 100 percent of the full-time minimum wage. No means-testing -save adminitration costs. Tax system could ‘skim’ uneeded largess from the wealthy, if it was worthwhile.
The rationale for the Future Fund:-’
‘We invest the assets of the Future Fund, the Medical Research Future Fund, the DisabilityCare Australia Fund, the Aboriginal and Torres Strait Islander Land and Sea Future Fund and two Nation-building Funds’.
Australia’s sovereign currency government can always fund medical research, care for the disabled and provide sensibly and adequately for Indigenous needs right now and an on-going basis in $A, when and where they are needed, many urgently right now.
A future fund is costly to oversee and manage, as is any venture depending on return on investment. The fund is at the mercy of markets and trade wars eg USA/China tariff wars, which has seen falling stockmarkets, leaving returns in doubt.
The Australian Future Funds have substantial investment in Global Equities eg Future Fund as at 31 March 2019 has 17.4% in Developed markets and 9.00% in Emerging markets. This at the same time as Australia’s Public Good is grossly diminished by unemployment, underemployment, crappy Aged Care, contemptuous NewStart and disgraceful Indigenous disadvantage.
Too many of us – Politicians of all kinds, Media, many Academics and those of us who have neither the time, backgrounds or knowledge to challenge the prevailing superstitions are still trapped in a commodity money mindset and haven’t progressed conceptually from the days when money was backed by gold.