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Quokka

Use Super To Buy A Home

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Guest Bart of Darkness
The move, proposed by the Real Estate Institute of Australia, has been promoted as one way to address the looming housing affordability crisis in the nation's capital cities.

I guess lower prices would be just TOO simple?

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I guess lower prices would be just TOO simple?

Let me give you a little background. Super funds in Australia were for the most part set up in the late 80s as industry based funds as part of an 'Accord' between the labour government and the unions. Unions were on the boards of all super funds and have significant control over the investment. At the same time a compulsory 3% super payment was levied on ALL wages and salaries that had to be paid to these funds. The % increased over time but I am not sure by how much.

Australian super is the basis of national retirement security and unlike British private pensions are paid for the most part as a lump sum at retirement age and there is no requirement for purchase of an annuity from a private company (this is a corrupt scandal in Britain in my opinion). The money is entirely ring-fenced so a company can't take risks with it Maxwell style and the whole amount, whatever the amount is is held in an independent superannuation fund.

Business never liked the idea, and prior to its introduction predictably predicted the collapse of the Australian economy if it were implemented. As time has past, super funds have become the most significant investor in the Australian stock market. There is so much money in these funds that they are now having to look outward to where else to invest it.

The Conservative prime minister, John Howard doesn't like this at all. It gives the Unions cudos he would rather dispense with, and I am sure he would love to dissipate the power of an idea that wasn't his. They had just introduced 'choice' legislation and were encouraging people to get out of the old industry funds when I was there. The fact is that the old industry ones are solid as a rock and are delivering the goods. Howard is the flip side of the nanny state - no care at all. The fact that he is putting people at undue risk for short-term goals (to keep the building industry afloat and win the next election) wouldn't worry him because he is a mean little weasle.

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At the same time a compulsory 3% super payment was levied on ALL wages and salaries that had to be paid to these funds. The % increased over time but I am not sure by how much.

It's now 9% (tried to put a smiley here but this silly computer won't let me).

As for John Howard being a bit conservative and not liking the unions, that's nothing. He's trying to stop us saying anything against the government (ever) now under the guise of terrorism. Outright ******* dictator who simply has to go. Can't speak out against the government? That's NOT democracy or freedom by any definition. :angry: :angry: :angry: :angry: :angry:

Edited by Smurf1976

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It's now 9% (tried to put a smiley here but this silly computer won't let me).

As for John Howard being a bit conservative and not liking the unions, that's nothing. He's trying to stop us saying anything against the government (ever) now under the guise of terrorism. Outright ******* dictator who simply has to go. Can't speak out against the government? That's NOT democracy or freedom by any definition. :angry: :angry: :angry: :angry: :angry:

Smurf. Mate. I so feel for you. I emigrated just after THAT election. I swore I wouldn't come back until the emperor was deposed and Ray Martin had died (I never forgave him for that stupid milk question). Thought of asking for refugee status in el salvador???

EDIT:

And Smurf you have GOT to read the description you wrote of John Howard on the alternative version of the site in Warickshire Lad's post (link on the Whose Birthday string). You would definitely get banged to rights!!!

Edited by Elizabeth

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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