Doug McTaggart
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Two of Australia's foremost financial services economists have urged the establishment of a sovereign wealth fund.
Praemium chairman Don Stammer and QIC chief executive Doug McTaggart both told the Association of Superannuation Funds of Australia that a sovereign wealth fund was necessary to help Australia cope when the mining boom inevitably ends.
McTaggart said the mining boom was actually bad for Australia because it had created complacency and overconfidence.
He went so far as to suggest that the Government should use a Resource Super Profits Tax to fund the sovereign wealth fund together with a profits tax on the banks.
"We are overconfident about the minerals boom but all booms come to an end," McTaggart said.
He said the minerals boom was not being driven by demand but rather by a lack of supply — something that could rapidly change.
Stammer said the inevitability of the minerals boom coming to an end meant superannuation funds should prepare themselves appropriately.
He said this should be done via the accumulation of safe assets to deal with tough times.
BlackRock boss Larry Fink praised Australia’s superannuation system in his annual chairman’s letter.
The prudential regulator has announced it will publish new expenditure data of superannuation funds, providing details on expenses like advice, director remuneration, and payments to unions.
Affirming the UK’s growing attractiveness as an investment destination, a number of Australia’s largest investors recently joined the UK Foreign Secretary for an exclusive briefing in Canberra to discuss further opportunities for trade and growth.
The specialist superannuation law advisory practice is set to wind up, with managing partner Jonathan Steffanoni planning to bring a new offering to market.
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