Flat White

The compulsory super scam: why get in to bed with the devil if you only want to cuddle?

20 November 2020

4:41 PM

20 November 2020

4:41 PM

Reported in the Oz:

Scott Morrison will delay a decision on whether to ditch next year’s scheduled rise in the compulsory superannuation contribution until the May budget over concerns that lifting it would smash wages as the economy recovers from the pandemic.

Increasing the compulsory superannuation contribution from 9.5% to 12% will certainly not smash wages.  It will be great for the superannuation fund managers and superannuation trustees and superannuation administrators and accountants and lawyers and other hangers-on.  It’s won’t smash their wages.  It will boost them.

After all, without compulsory superannuation, would:

[T]he mean total compensation paid to surveyed chief investment officers and heads of equities was $704,167 – and 50 per cent of those interviewed earned more than $750,000, while 17 per cent snared more than $1 million. The mean base salary – pre-bonus – was $400,000.

And what about portfolio managers who:

[W]ere the next biggest earners, with a large chunk paid somewhere between $400,000 and $500,000 in 2020 and the mean total compensation sitting at $591,429.

The government and the media should stop being so churlish. The increase in the compulsory rate will be great for those people who are the most vocal advocates for increasing the compulsory rate.  ‘Twas always thus, and always thus will be.

For everyone else, outside the superannuation industrial complex, not so much.

It probably won’t result in a reduction of salary either for those in employment. Those left in employment that is. The problem of course will be those who will lose their jobs and those unlikely to get a job ever again.

Of course not those 2 million plus in the public sector of course who get 15.4% superannuation (or 14% plus GST) paid for by the tax payers.  Will this also mean that their taxpayer-funded compulsory contributions will also need to rise by 1.5% to 16.9%?

After all. Why get in bed with the devil if you only want to cuddle?

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