Facts speak louder than statistics

Tuesday, 26 May 2009

Changes To Superannuation

Former Prime Minister Paul Keating has slammed the proposed changes.

Former Prime Minister Paul Keating and former ACTU boss Bill Kelty have warned the federal government not to raise the superannuation qualifying age to 67.

Mr Keating and Mr Kelty jointly designed Australia's superannuation system in the 1980s.

Mr Keating introduced the scheme as treasurer and later extended it as prime minister.

At present, workers can draw their superannuation between 55 and 60, depending on when they were born, but the government is considering a recommendation from the Henry tax inquiry to align the super access age with the new retirement age of 67 by 2023. (Full Story)

Paul Keating put it very succinctly when he pointed out that Superannuation money is private money.

That’s what needs to be remembered, the money belongs to the account holder. It is not there to benefit others. It is there for the benefit of the individual and is largely financed by the individuals own income.

The benefit to the nation is a fortuitous benefit in that it decreases the reliance of people on taxpayer funds and is one less strain on the federal budget, this does not mean superannuation funds are part of the budget though.

Private money. That's what it is and it helps the nation because people will be less dependent on pensions.

Sunday, 24 May 2009

Getting It Right?

Queensland Premier Anna Bligh got this right. Even with the recent deluge of rain that filled our dams the current water restrictions won’t be lifted until December.

There has been a lot of criticism of this decision even though it makes sense, they are in essence saving water for a sunny day as it were. The way to competently deal with water shortages is to not waste water, just in case it takes a while for the rain to return and we end up with even harsher restrictions and water shortages.