POWERED BY MOMENTUM MEDIA
Ageing population and deficits could erode simpler super
An analysis of the Government’s second Intergenerational Report conducted by the Russell Investment Group has warned that Australia’s ageing population may one day force a future Government to withdraw many of the changes included in the Simpler Super arrangements.
The analysis looked at the projections contained in the Intergovernmental Report and the manner in which future deficits would need to be funded.
“One possibility is that the deficit could be funded by increasing taxes. However, there will be a narrowing of the tax base with fewer Australians of working age,” it said. “Older Australians that are paying little or no taxes could be asked to contribute. It is possible that a future government could be forced to consider undoing some of the recent superannuation changes.”
It said a larger and younger population could help to reduce the predicted challenges of Australia’s demographics.
“Australians could start to have larger families, but all the empirical evidence leads us to believe that this is not going to happen to any significant extent,” the analysis said. “The other approach to increasing the working age population is to accept additional migrants in that age band.”
AUTHOR
Mike Taylor
Recommended for you
The super fund has significantly grown its membership following the inclusion of Zurich’s OneCare Super policyholders.
Super balances have continued to rise in August, with research showing Australian funds have maintained strong momentum, delivering steady gains for members.
Australian Retirement Trust and State Street Investment Management have entered a partnership to deliver global investment insights and practice strategies to Australian advisers.
CPA Australia is pressing the federal government to impose stricter rules on the naming and marketing of managed investment and superannuation products that claim to be “sustainable”, “ethical”, or “responsible”, warning that vague or untested claims are leaving investors exposed.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
