FROM THE ARCHIVES – after the May 2002 Budget

FROM THE ARCHIVES – after the May 2002 Budget

From my newsletter Wednesday, 15 May 2002

The budget was a nothing and once again proved that the Liberals have no concept of superannuation.  What follows is a media release from Barbara Smith from the Taxpayers Association which I think sums it up beautifully.

“The budget has revealed the cynicism of our political masters and just what an ass our superannuation laws have become.

Children under 18 can now have up to $3,000 each three years contributed to as many superannuation funds as their misguided benefactors choose.  I can just imagine a 15 year olds ‘enthusiasm’ when told that $3,000 has just been put into an account that cannot be touched for up to 50 years.

People between 70 and 75 who manage to get a paid job and struggle off to work for at least 10 hours a week can now make as many undeducted contributions to superannuation as they choose.  For other over 65 year olds no work continues to mean no further super contributions.

Then why, can someone please tell me, are widows and single people who have not been in the paid workforce in the last two years the only people in Australia to be denied that opportunity – unless they have a baby!

That’s right, the Canberra bureaucrats are generously allowing women who have a baby and get the $500 to $2,500 baby bonus to contribute that, and other spare money they have laying around into superannuation that year. Women with partners can already get money into superannuation via their spouse’s contributions anyway.  So, the only people that this little bit of political ingenuity benefits are un-partnered women who haven’t worked for more than two years.

Are our policy makers for real or are they from a different planet? Haven’t any of them experienced the overall cost of becoming a new parent, even with a partner?

Meanwhile many widows often have insurance pay outs that they would just love to put into super, but they can’t unless they get a job, get a de facto or get pregnant! Can retirement income policy get any more hare brained than this?

Yes folks, welcome to ‘a better superannuation system’ or more aptly Australia’s retirement savings policy circus in the 21st century.”