With $3 trillion under management, $40 billion in tax concessions, $34 billion in management fees for shuffling paper and $600 billion invested overseas – superannuation is devouring the real economy.
I recently spoke with Peta Credlin about why superannuation isn’t working.
After almost 30 years, around 68% of retirees are still on the pension. Furthermore, unlike the pension, superannuation is not universal. Stay at home parents, carers, volunteers, low income workers and the unemployed don’t accumulate super.
Very little of superannuation is actually invested in the real economy, instead it is used to purchase existing assets, which only causes inflation resulting in more money being taken out of the workers pockets to pay for essential services.
The rise in the superannuation levy to 12% will hurt both workers and businesses as money is invested into financial markets rather than the real economy.
Super should be invested into building new assets that will provide employment and essential services for the working classes in the regions and the cities such as dams, energy, port and rail.
Instead of allowing super funds to invest offshore, it’s time the government stepped up and provided an opportunity for Australians to invest in infrastructure that will provide a better life for our children via an infrastructure bank.
