Rather Belated Budget Blog
May-24-2011Hello fellow super enthusiasts!
By now you should have read and digested the Federal Budget papers released on 10 May 2011 and in fact, if yours are like mine, they have now made their way from the ‘to read’ pile over to the ‘to file’ pile.
There were no super surprises in the Budget. Superannuation didn’t feature as prominently as it has in the past and this was expected given the major body of work going on at the sidelines…I am of course talking about Stronger Super.
That being said, the Budget did contain something pretty important…no I’m not talking about the set top box for pensioners initiative… (although I am only a few years off from being eligible….) I’m talking about the Government’s financial support for Stronger Super. This commitment confirms that these important and necessary reforms are not just discussion topics or hypothetical outcomes that are being philosophised by a few super nerds, like myself, in obscure alternative cafes and delis (the closest to a good Dutch cheese shop you can find); they are in fact a reality. Stronger Super is a real program with real benefits to members. This support is fantastic and should not only be applauded but reciprocated by the industry.
Whilst Stronger Super is the way forward (I’ve been waffling on about this for some time now!), there is a lot of work to be done. It’s important that we don’t just sit back and expect this to magically happen “by others” or just expect the benefits to come to fruition without any real effort or input.
Making SuperStream (my pet collection of reforms) a reality is a joint responsibility for the industry and Government. We need to work cooperatively and I guess one of the ways we can do this is by knowledge sharing.
So, put on your thinking caps and answer me this…where is your fund at (or organisation if you are a service provider)? Where do you think the industry is at in terms of making Stronger Super a reality? You can tell me in ‘stars’ (or consistent with super industry practice, why not use a fruit!), you know, one to five, or you can just give me a code word…good, bad or ugly.
I’m waiting to hear from you, and in the meantime, it’s tea time!
Yours in Super,
Hans
Thanks Han, I enjoy reading your knowledgable blog.
I am positive on long term on both Australian industry and superannuation, but near team is full of uncertainties due to the immenient 3rd QE, Europe Sovereign Debts woes, slowing down manufacture in world likely lead less resource demand, steady interest rate rise, fluctuate currency..etc. From one to five, I will choose 3.
Yi Li
Hans, there was one sleeper in the Budget. The announcement that Directors of Companies would be personally responsible for unpaid superannuation contributions. This was largely promoted as fixing a problem with Phoenix Companies but is laying a trap for employers who are treating their employees as contractors.