Superannuation industry in Australia Introduction It’s a retirement savings scheme for employees and is mandatory that employers contribute 9.25% in 1st July 2013 of the employee earnings into a superannuation fund. Superannuation however is not compulsory for most self-employed. superannuation fund objectives and its purpose is outlined in -The Australian Prudential Regulation Authority (APRA), and its core purpose defined by the Commonwealth Regulator for superannuation is the essential provision of benefits after or on r the employees retirement, attaining his or her age 65 or earlier death and the benefit being the members accumulated savings. However, superannuation seems to be understood poorly by the wider society. Most people have misconceptions of what actually superannuation is, the types and the benefits of building wealth through superannuation, how it operates. In cases of, disengagement by members from their funds, poor communication from funds and people losing track of their accounts this however brings the negative picture as viewed by some people of superannuation. In most cases people can choose the fund that they want to contribute to and unless restricted by a federal legislation or awards, will take the funds to their future jobs. Types Superannuation funds Trustee structure Superannuation funds operate as trusts funds with trustees being responsible for the prudential operation of their funds and in implementing and formulating strategy for investment .specific obligations and duties are coded in the Superannuation Industry (Supervision) also other obligations are the subject of general Australia trust law. Trustees are liable under law for breaches of obligations. Superannuation trustees ha... ... middle of paper ... ... Gross Development Produce generally, there is a persistent and pronounced trend towards consolidation of these institutions in Australia. With the combination of resilience contributions into the system, consolidation has generally resulted in the average size of superannuation institutions increasing significantly (measured by assets) during the decade to $2.6 billion in June 2012. References APRA insights issue 1 January 2013). "Superannuation reforms 2011-2013". Retrieved 21 February. Australian Government. 2012, Superannuation — Increasing the Superannuation Guarantee Rate to 12 Per Cent.Future Tax - Re -viewed 7 July 2012.february 2013. www.wikipedia/"What is Superannuation? .com Kpmg.com.au Evolving Superannuation Industry Trends November 2012 Patrick, C 2004, The Guardian: Australia may hold key to pensions, 12 October 2004, retrieved 21 July 2006
Can We Keep Our Promises? The purpose of this paper is to provide a summary of the article called “Can We Keep Our Promises?” by Robert D. Arnott, and to help better understand the three key risks facing each investor. Robert Arnott describes risk and return as “having two sides of the same coin” meaning risk is inseparable from return. Arnott points out the most important risks that are faced by managers of company pension plans: underperforming other corporate pension funds (their peers), losing money (mostly associated with portfolio standard deviation or volatility), and underperforming the values of pension obligations and therefore losing actuarial ground.
The push for Congress to pass legislation protecting the rights of employees and their retirement was inevitable. Retirement plans are extremely important for all working individuals. Having funds to keep or exceed ones current standard of living and to enjoy one’s life beyond expectations after retire...
The liberals introduced an old age pension for people over seventy years old and with no other income. They also introduced a married couples pension. Pensions were not a new thing but the most radical thing about these pensions was that they were entirely government funded. The pension was not incredibly large and the average working class person did not live to be 70 but for those who did the pension made them independent. In the year after the introduction 80000 people stopped claiming relief from charities.
The objective of the SEPF is to provide union members with a lifetime monthly pension benefit upon retirement. With the events that took place on September 11, 2001, the fund has suffered a loss from their investments, like so many other plans have. This loss resulted in the fund having to make changes including the inability to give retirees annual increases in their monthly pension benefit and a 20% reduction in the way the plan calculates future benefits.
Founded in 1937 as a housing based financial institution, St. George as Australia's foremost building society have now become Australia's fifth largest bank and one of the top 20 publicly listed companies in Australia. St. George has business spanning all the aspects of the financial industry including retail banking, institutional & business banking, and wealth management. The emphasis St. George has on its customers makes St. George stands out from other Australian banks. Customer service is St. George's priority in business culture, they are constantly investing and developing better relationship with its customers2.
Pension provides an income when people have stopped working. Also, it provides important forms of insurance against long life, prices, relative benefit drops and savings shocks. As well as it is an important benefactor to the financial security of a majority of Australian men and women of retirement age, with about 70 per cent of people of pension age receiving the Age Pension (Australia and Treasury, 2015). The government can provide this type of insurance for less than it costs individuals to insure themselves by sharing long life risk, and hedging the
This research question is regarding to the case of ASIC v Healey (2011) 196 FCR 291. On October 2009, they were sued by The Australian Securities and Investments Commission (ASIC). There were many controversy regarding this matter as overly harsh and unduly harsh. Some considered this as a wake-up call for directors by Katz, Lipton, Rosen and Wachtell to take responsibility by fulfilling their duties so they will act with a degree of care and diligence. On the contrary, some considered it as overly harsh due to the requirement to the understanding of financial literacy. This essay will provide a summary of the ASIC v Healey case followed by the decision made by judges and why they made the decision then lastly followed by our opinion regarding
Firstly, people that choose to work will be supported by the Government with a child care subsidy funded by the restructuring of the Family Tax Benefit payments. Changing the eligibility requirements of current welfare recipients and denying new applicants access to carbon tax compensation funds. Closing current health schemes and nationalising future schemes such as the Child and Adult Public Dental Scheme and The National Disability Insurance Scheme. Further, they intend on reviewing and insisting on medical revaluations of Disability Support Pension recipient’s. Conversely, all of these measures mentioned above are the current Governments design to support the Australian welfare system. For example, “The Government is committed to maintaining a sustainable welfare system by ensuring that those who are able to work are supported and encouraged to do so” (Commonwealth of Australia 2016, Budget Overview, p.
Ryan, C. (2010), An open letter to all members of New South Wales Parliament, Sydney, viewed 15 May 2014, http://www.piac.asn.au/sites/default/files/Open_Letter.Dec_3.pdf.
Brian, the 42-year-old, unemployed for 18 months receives $452.80 between him and his part-time employed wife Joan. Brian has been unemployed for 18 months, well past the way the government has intended to be a short-term welfare. The Newstart Allowance cost the government $7.5 Billion per year. Former Social Services Minister Kevin Andrews said that the relentless growth with the public’s intentions on raising the Newstart Allowance will be unsustainable (Harrison, n.d.). Although Australian welfare support payments, the recipients are means tested but around 27% of the population are receiving some form of Government support payments (Butterworth, 2015). This is such a large portion of Australians aren’t paying the tax in which the Government needs to continue paying these supporting payments. In 2015-2016, the Government will spend $154 Billion on welfare. This is around 35% of the total government expenditure (Welfare integrity measures, 2015). 35%, there is no way that this is sustainable as if more than one-third of the taxpayers’ dollars are going to those who don’t work, or don’t work enough to support themselves. Centrelink made 436,745 special payments in 2011-12, almost half of these payments (48%) are those receiving unemployment benefits (Peatling, 2012). The Newstart is intended to be a short-term assistance, but studies show that 65% had been on the support benefit for 12
... the safety net of modern awards, the ten national employment standards introduced by the fair work act 2009, and annual adjustments to the National minimum wage provided minimum levels of income and working conditions to workers with low skills and low bargaining power in the labour market. Other components include government spending on public health, education, housing, transport and community services which provide a safety net for low income earners. Macroeconomic policies such as monetary and fiscal policies supports aggregate demand as the GFC and recession impacted adversely on the Australian economy. The main concerns were to support economic growth, household incomes and living standards in the short term, to minimise the increasing rate of unemployment in the medium term, and increase public investment in infrastructure to increase productive capacity.
Lateral Economic 2007, ‘Other people’s money II: Making Australia a supplier of funds management to the world’, Lateral Economic, vol. 2, no. 1, p. 2.
Personal Differences. In this case, Dan Richardson, a partner in Educational Pension Investments (EPI), founded EPI with a philosophy of maintaining low-risk investment portfolios with moderate income; a philosophy that has been in place for 50 years. This risk adverse philosophy found Dan considering the merits of a more aggressive investment approach to offset the fact that EPI’s growth has not kept pace with other investment opportunities. (Whetten & Cameron, 2011)
Hayes, A., Weston, R., Qu, L., & Gray, M. (n.d.). Families then and now:1980-2010. Australian Government . Retrieved November 18, 2013, from http://www.aifs.gov.au/institute/pubs/factssheets/fs2010conf/fs2010conf.html
Allers, Kimberly Seals. "How Fit Are Your Finances?" Ebony 68.9 (2013): 93-97. Academic Search Complete. Web. 15 Nov. 2013. Bauer, Gabrielle, and John Southerst. "A promising retirement: your life, your way." Maclean's 18 Feb. 2013: 37+. Opposing Viewpoints in Context. Web. 15 Nov. 2013.