Dr Jim Chalmers has spent too much time in the Canberra echo chamber. As an aspiring policy adviser and then professional politician. Disconnected and fond of pontificating sermons.
First, there was the bewildering and dreamy 6000-word essay “Capitalism after the Crises”. Now he wants to legislate a purpose for Super.
To stop the political “Super wars” and enshrine its objective to “deliver income for a dignified retirement”.
But
1. Super already has a purpose.
Clearly defined in section 62 of the SIS Act. It requires that
“The superannuation fund is maintained only for the purpose of providing benefits to its members upon their retirement, or for beneficiaries if a member dies.”
This is phony diversionary nonsense.
2. No government can bind future governments.
The so-called super wars are a Jedi mind trick. No current government can bind the hands of future governments and stop them from innovating. Earlier innovations were in response to the events of the day.
Right or wrong, a government must have the freedom to move and respond to the issues of the day.
3. They are already interfering.
There are strong indications that the Government wants to direct Super funds to invest in infrastructure and social housing. All good things but they should not be making investment decisions on behalf of fund managers, whose duty is to deliver the best returns to their members.
Worse, the Assistant Treasurer and Minister for Financial Service, Steven Jones has referred to super as “honey” that should be managed in the “best interest of the hive”. With the tacit inference – as the government sees fit.
Super wars, here we come again.
4. It’s not their money.
Superannuation is your money. You have earned it as part of your remuneration. It is not the government’s money. It is not there to be directed towards investments that suit the government’s ideological agenda. It is there to create wealth for you.
5. Proposed tax on unrealised gains.
Most people don’t want to pay more tax, but there has been begrudging acceptance that with an SMSF of $3M, many people are ok to pay a little more tax to provide for better social services and infrastructure.
However, where all the accountants are up in arms is about the proposed tax on unrealised gains in super assets. People are apoplectic.
What are your thoughts about the current state of super and its purpose?
P.S. There are also a number of significant unintended consequences with super. But that is for another day.