Melbpom Posted July 30, 2019 Share Posted July 30, 2019 New Liberal senator Andrew Bragg is proposing that super should be voluntary for low income workers and suggested that by ticking a box on their annual tax returns they can get a refund for contributions made during the year. Can you imagine the temptation, rather than save and reap compound interest, take the cash now and spend? IMHO a bad idea. https://www.smh.com.au/politics/federal/make-super-voluntary-for-low-income-earners-new-liberal-senator-says-20190724-p52aer.html Years ago, a large employer I know ran a subsidised canteen for it's staff. Management thought the canteen too expensive so they gave their staff a choice, canteen or $2000 on your pay. Staff took the cash of course but over time the $2k canteen component got absorbed. After a few years no canteen and no increase in pay. I only mention this because I could imagine that employers would treat the super bonus in the same way. 1 Quote Link to comment Share on other sites More sharing options...
AJ Posted July 30, 2019 Share Posted July 30, 2019 Quote ][ All that will happen is they will spend their retirement complaining that they cant survive on State Pension - well if they hadnt spent all their super contributions! Quote Link to comment Share on other sites More sharing options...
Parley Posted July 30, 2019 Share Posted July 30, 2019 I think the intent is to help young people buy their first home which some see as a higher priority than superannuation when you are in your 20s. Quote Link to comment Share on other sites More sharing options...
NicF Posted July 31, 2019 Share Posted July 31, 2019 1 hour ago, Parley said: I think the intent is to help young people buy their first home which some see as a higher priority than superannuation when you are in your 20s. You do know that not all low income earners are in their 20s and not all people in their 20s are low income earners don't you? If the intention was to allow young people to buy a house then they would be proposing that super would be voluntary for young people. 1 Quote Link to comment Share on other sites More sharing options...
Melbpom Posted July 31, 2019 Author Share Posted July 31, 2019 2 hours ago, Parley said: I think the intent is to help young people buy their first home which some see as a higher priority than superannuation when you are in your 20s. I agree that buying a house is more important than saving for super but the danger is that it's used for a wage top up. Better to have a scheme where people can access super to make a verified home purchase. Imagine the scenario of couples with unequal incomes. Money is tight because of low wage growth and one person's super is accessible. Quote Link to comment Share on other sites More sharing options...
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