It's the economy, stupid!

 
  RTT_Rules Dr Beeching

Location: Dubai UAE
https://www.abc.net.au/news/2019-05-03/increasing-compulsory-super-will-leave-workers-poorer-grattan/11074732?section=business
The opposition to increasing Super contributions is very short sighted and a hypocrite.

On one hand he says that the increase will leave poorer workers worse off and then he says the change to retirement benefit is microscopic.

Even very low income Indian Laborer workers get 12.5% from their employer and are legally required to fund an extra 12.5% out of their take home pay. Thus after 40 years they have 10 years salary plus interest which is around 3% more than inflation, so about 12-15 years worth of income saved over their 40 year working career, which is 100% more than what many would have saved without it.

By 2025, we need to progressively move to 12.5% employer and 5-7.5% employee, increasing to 12.5% by 2030.

AND

Phasing out of the 15% contributions tax for lower income earners.

Sponsored advertisement

  Groundrelay Chief Commissioner

Location: Surrounded by Trolls!
No interest rate cut this month. We have unprecedented low interest rates and people still can't buy a house Surprised

While all the focus is on the housing market every rate cut is a significant pay cut to anyone investing. Retiring with $250K in term deposits pre-GFC made $24,000. Today it's more like $5000. Sure you can buy bank shares but they've dropped some 30% in two years, the dividends have stagnated and in some cases have been cut.
  DirtyBallast Chief Commissioner

Location: I was here first. You're only visiting.
No interest rate cut this month. We have unprecedented low interest rates and people still can't buy a house Surprised

While all the focus is on the housing market every rate cut is a significant pay cut to anyone investing. Retiring with $250K in term deposits pre-GFC made $24,000. Today it's more like $5000. Sure you can buy bank shares but they've dropped some 30% in two years, the dividends have stagnated and in some cases have been cut.
Groundrelay
Yep.

People with mortgages are a minority group. Low interest rates have forced cash investors (retirees or not) to consider alternatives such as high yielding, but often risky shares, and due to their wealth they don't care about the intrinsic value of their investment:

https://www.smh.com.au/money/investing/i-don-t-care-what-the-share-price-is-when-i-m-dead-20190429-p51ico.html

[rant] In the case of retirees, these people are so wealthy that they often don't qualify for the pension, so says the government that they keep voting for, and now they whine about losing part of the income they derive from investing in shares? What part of 'risk' don't they understand??? if they were fair dinkum about shares providing ongoing money for their lifestyles, they would actively invest instead of being so lazy. So much more money can be made from researching stocks, buying and selling them at the right time, than relying on a temporary perk.[/rant]
  RTT_Rules Dr Beeching

Location: Dubai UAE
No interest rate cut this month. We have unprecedented low interest rates and people still can't buy a house Surprised

While all the focus is on the housing market every rate cut is a significant pay cut to anyone investing. Retiring with $250K in term deposits pre-GFC made $24,000. Today it's more like $5000. Sure you can buy bank shares but they've dropped some 30% in two years, the dividends have stagnated and in some cases have been cut.
Groundrelay
I'll point you to the Macquarie Bank Managed Fund website https://www.macquarieim.com/ where you will find returns of between 4% for cash and consistent well in double digit returns after fees for at least the last 8 years for others.  

Term deposits are for short term investments (1-2 years tops) only while you have a pile of cash without a longterm destination.
  don_dunstan Minister for Railways

Location: Adelaide proud
No interest rate cut this month. We have unprecedented low interest rates and people still can't buy a house Surprised

While all the focus is on the housing market every rate cut is a significant pay cut to anyone investing. Retiring with $250K in term deposits pre-GFC made $24,000. Today it's more like $5000. Sure you can buy bank shares but they've dropped some 30% in two years, the dividends have stagnated and in some cases have been cut.
Groundrelay
Deflation, the ultimate punishment for people who have been trying to save for their future.
  don_dunstan Minister for Railways

Location: Adelaide proud
As if to reinforce what I've said, the RBA cut to 1.25% yesterday - the lowest interest rates have been in the post-WWII era.

Josh Frydenburg criticises the ANZ for not passing on the full rate cut (ABC) while failing to recognise the irony of bullying businesses he technically doesn't control.

The real taxation on retirees in the last ten years has been falling interest rates; I know some retirees living on interest payments who are going to have to start eating into their capital because the interest is too small to survive on. There's probably going to be a lot of retirees and savers out there punished in the same way.

In the meantime I'd expect that the housing market should bounce a bit (as the government is probably hoping) - mortgage rates below three percent hasn't been seen since the fifties.

Zero interest rates here we come!
  Radioman Chief Train Controller

Dear Don and others,

when I did High School economics in the late 1960s it used to be the adage that the difference between interest payable on borrowings, and interest earned on savings was 5% after Inflation.

by the time I was at work in the late 1970s with high inflation, and therefore high interest rates, I would point this out to my work mates that as the difference between the two at that time hovered around the 5% mark, that in reality, they were no worse of than before, especially considering that in most instances ( doubtless there were exceptions ) a combination of wage rises and tax cuts had kept real income and real disposable income, relatively secure.

Also at this time Argentina was suffering from hyperinflation, and a family friend who had recently left Argentina was of the view that an inflation rate of 100% to 150% was manageable. ( This did not mean that hyperinflation was desirable, just that it could be managed. )

As Don says, deflation does have an insidious effect on interest based earning, and if left for too long, will inevitably lead to a drying up of loan finance, after all if you have zero or negative earnings from advancing finance for loans why would you do so ?

Regards, Radioman.
  don_dunstan Minister for Railways

Location: Adelaide proud
Dear Don and others,

when I did High School economics in the late 1960s it used to be the adage that the difference between interest payable on borrowings, and interest earned on savings was 5% after Inflation.

by the time I was at work in the late 1970s with high inflation, and therefore high interest rates, I would point this out to my work mates that as the difference between the two at that time hovered around the 5% mark, that in reality, they were no worse of than before, especially considering that in most instances ( doubtless there were exceptions ) a combination of wage rises and tax cuts had kept real income and real disposable income, relatively secure.

Also at this time Argentina was suffering from hyperinflation, and a family friend who had recently left Argentina was of the view that an inflation rate of 100% to 150% was manageable. ( This did not mean that hyperinflation was desirable, just that it could be managed. )

As Don says, deflation does have an insidious effect on interest based earning, and if left for too long, will inevitably lead to a drying up of loan finance, after all if you have zero or negative earnings from advancing finance for loans why would you do so ?

Regards, Radioman.
Radioman
Radioman, good to see you here -

In the event of actual deflation of the currency the government has a number of options at its disposal. I think the most likely scenario is that the government will try and flood the system with liquidity as much as they can regardless of the ideology that they have - I would have expected Shorten's big spending spree might have done that in itself but maybe Morrison will be compelled by business do to that anyway - and do it soon.

That would mean a return to the Rudd-type spending where they simply put money out there for people to spend. Famous economist John Maynard Keynes suggested to the British government early in the Great Depression that they should randomly bury money at the beach for people to find (!). The Rudd solution was some pretty huge public works programs many of which were shown to be pretty wasteful but it did seem to avert the worst of the 2008-9 financial crisis.

The second consideration is that I think the government will likely move faster on getting cash out of the system - somewhat counter-intuitively. The reason is that banks will be be paying either negligible or almost no interest on savings any longer and in that kind of environment lots of people will be tempted to pull their money out of the banks and put it under the mattress where theoretically its safe from deflation - just in case their money gets requisitioned by the government. I think everyone knew of the neighborhood Greek nonna with her money under the mattress because she didn't trust the banks - this is exactly the kind of psychological run on the banking system the government will be trying to avoid so a modern solution to this conundrum could be to restrict or even mostly remove access to cash.

Interesting times.
  davesvline Chief Commissioner

Location: 1983-1998
And the first step with these grubby little smeg will be the removal of our green bank note.

Mark my words.

If you can't fix it - tax it. If the net to tax it isn't effective enough, fix that....

Regards
  Radioman Chief Train Controller

Dear Don and others,

thank you Don, while I may not agree with some of your comments, I do like reading them.

If a Keynesian Boost to the economy is to happen, ( agree with Don that this is probably the best way forward ) consideration could be given to boosting public housing to accomodate the far too long waiting lists, and some formulae be arrived at that encourages the tenants to eventually own the property.

If a public housing scheme is properly established with the goal of home ownership, the turnover in housing will allow for funding future schemes. In a sense , a variation on the Co Operative Housing Association model. The crucial factor though would be a permanent Housing Trust to act as the long term financier. This would also allow Governments to keep the house construction industry going, especially in times of low demand, yet long term, theoretically at least, should be self financing.

It may also assist the Government in the long term funding of specialised housing for special needs and ageing citizens who, for various reasons, are excluded from the private market, which finds these specialised clients too difficault ( unprofitable ) to provide for.

This would allow the homeless some stability, allow them to access services that will assist their recovery and contribution to their community, and act as an incentive to seek and stay in employment, as well as prevent the public housing from becoming undesirable ghettos.

The other consideration needs to be ensuring that any such public housing estate be relatively small, and have a diversity of housing sizes to accomodate both young families, single persons, special needs and aged citizens. As the current too long waiting lists consists of such a diverse pattern, then emphasis should be made on accomodating this diversity in small estates.

If the housing is high density but low rise, and includes things like community gardens and communal spaces, this will assist in forming a community, and over time become self supporting. As the tenants become home owners the Government will have an ongoing source of funds to build replacement public housing.

Regards, Radioman.
  Groundrelay Chief Commissioner

Location: Surrounded by Trolls!
The Rudd solution was some pretty huge public works programs many of which were shown to be pretty wasteful
don_dunstan
Which is BS just like Liberal's superior economic management. The programs like school buildings turned out to be no more wasteful than other government projects. The objective was to immediately address the crisis of confidence and getting money into the economy quickly could do that. Contrast our experience with the USA where credit dried up and millions were left with nothing.  

Interesting times.
don_dunstan
Watching the Libs manage a failing economy and seeing which Americans end up greater.
  RTT_Rules Dr Beeching

Location: Dubai UAE
The real taxation on retirees in the last ten years has been falling interest rates; I know some retirees living on interest payments who are going to have to start eating into their capital because the interest is too small to survive on. There's probably going to be a lot of retirees and savers out there punished in the same way
Don_dunston

Ok, this is the part I neither understand or agree with.

If you are just retired and have a fat nest egg of say $1m, the best you will get is 2-2.5% in a term deposit, so about $20-25kpa dividend. Not alot to live off and if you have managed to save $1m cash then you are likely used to living off more. Assuming you retired at say 65, you could spend $50kpa and with your say 2.25% return you'd run out of money around age 90-91, if you are still around.

However why would anyone who has managed to save $1m cash be silly enough to stick their all their hard earned income into a Term Deposit? If you look at the Managed Funds held by say Macquarie Bank you can get fixed income from around 4% to other investments pushing 15%. So not hard to earn $50-100kpa in the market today and for last 5-10 years if you look at the historical data. And yes its real because this is where we place our meager savings.

Term Deposits are what our parents did in the higher interest 70's to 90's, in the era before the internet, mobile phones, higher interest rates and a better understanding of investments.

As for who would stick their money in a term deposit and hence where do the banks get their loan money from? This is why Australian banks for years have been mostly a front door for Australian's seeking home loans using over seas funds as the indirect investment into the Australian property market via providing the loan was an investment haven for foreign investors.  If you think Term Deposits are low in Aus, then you need to look further afield, here is UAE numbers. Not in local currency which is fixed to USD the rates are similar to Oz, but if you choose USD, its
  don_dunstan Minister for Railways

Location: Adelaide proud
Which is BS just like Liberal's superior economic management. The programs like school buildings turned out to be no more wasteful than other government projects. The objective was to immediately address the crisis of confidence and getting money into the economy quickly could do that. Contrast our experience with the USA where credit dried up and millions were left with nothing.  
Groundrelay
Let's be reasonable here, some things like Regional Rail Link in Victoria were well worth the Commonwealth majority contribution where as others like "school halls or libraries for everyone" and "home insulation for everyone" were widely rorted. I knew someone who did at least two rental properties through this scheme - and they shouldn't have. They were just determined to spend money no matter what and a lot of it was wasted whereas it should have been Roosevelt type projects nationally.

Watching the Libs manage a failing economy and seeing which Americans end up greater.
Groundrelay
You'll get no argument from me.
  don_dunstan Minister for Railways

Location: Adelaide proud
The real taxation on retirees in the last ten years has been falling interest rates; I know some retirees living on interest payments who are going to have to start eating into their capital because the interest is too small to survive on. There's probably going to be a lot of retirees and savers out there punished in the same way

Ok, this is the part I neither understand or agree with.

If you are just retired and have a fat nest egg of say $1m, the best you will get is 2-2.5% in a term deposit, so about $20-25kpa dividend. Not alot to live off and if you have managed to save $1m cash then you are likely used to living off more. Assuming you retired at say 65, you could spend $50kpa and with your say 2.25% return you'd run out of money around age 90-91, if you are still around.

However why would anyone who has managed to save $1m cash be silly enough to stick their all their hard earned income into a Term Deposit? If you look at the Managed Funds held by say Macquarie Bank you can get fixed income from around 4% to other investments pushing 15%. So not hard to earn $50-100kpa in the market today and for last 5-10 years if you look at the historical data. And yes its real because this is where we place our meager savings.

Term Deposits are what our parents did in the higher interest 70's to 90's, in the era before the internet, mobile phones, higher interest rates and a better understanding of investments.

As for who would stick their money in a term deposit and hence where do the banks get their loan money from? This is why Australian banks for years have been mostly a front door for Australian's seeking home loans using over seas funds as the indirect investment into the Australian property market via providing the loan was an investment haven for foreign investors.  If you think Term Deposits are low in Aus, then you need to look further afield, here is UAE numbers. Not in local currency which is fixed to USD the rates are similar to Oz, but if you choose USD, its
RTT_Rules
Okay, the answer isn't simple but it has to do with all sorts of things like diminishing returns on the ASX, investing off-shore where the risks - particularly to the banking system - are not as clear in law as they are in Australia. There's some implicit and explicit guarantees built into the Aussie banking system that (if all else fails) will kick in to ensure you get paid your money if there's a financial catastrophe.

If you want to chase much higher returns overseas that's fine but you probably won't be able to invest in AUD - remarkably high considering how rubbish our economy actually is.
  RTT_Rules Dr Beeching

Location: Dubai UAE
Okay, the answer isn't simple but it has to do with all sorts of things like diminishing returns on the ASX, investing off-shore where the risks - particularly to the banking system - are not as clear in law as they are in Australia. There's some implicit and explicit guarantees built into the Aussie banking system that (if all else fails) will kick in to ensure you get paid your money if there's a financial catastrophe.

If you want to chase much higher returns overseas that's fine but you probably won't be able to invest in AUD - remarkably high considering how rubbish our economy actually is.
don_dunstan
Diminishing returns on ASX? This is a fund that invests in Australian Shares,  Mac Bank Fund is pulling +8%, the bench mark is over 10% only down a few % in recent years.

Investing in Funds that invest Off-shore with a proven record is how anyone can make +10% on their investments.

Amazing how the Aus banking system gets heavily criticized, but then we raise concerns about the lack of transparency in Offshore banks.

If all else fails and the banks collapse, say good-bye to your money. If one bank collapses, then maybe you might get your money back.

Your last comment Don, honestly please stay out of offering advice in investing. We only invest via funds based in Australia via run by Aust based banks so its all above board and incurs all the Aust regulatory BS that goes into it and are averaging 7-15%pa depending on the fund and year in but one fund which took a big hit with the currency, but didn't go backwards. Some funds target Australia, ie Australian companies, Australian small companies does very well and others that invest both nationally and OS only investing in AUD.

As I said before, anyone who has the smarts to have set aside a nice higher +6 figure nest-egg to be worthy of living off for their retirement has the smarts to know that reliance on Term Deposits is not the way you fund your retirement without loss of capital and hasn't been for over 15 years.
  RTT_Rules Dr Beeching

Location: Dubai UAE
Let's be reasonable here, some things like Regional Rail Link in Victoria were well worth the Commonwealth majority contribution where as others like "school halls or libraries for everyone" and "home insulation for everyone" were widely rorted. I knew someone who did at least two rental properties through this scheme - and they shouldn't have. They were just determined to spend money no matter what and a lot of it was wasted whereas it should have been Roosevelt type projects nationally.

don_dunstan
Under the Qld govt Rainwater tank scheme I basically got a replacement 3500L header tank for my acreage for free. The old Galv steel one had rusted out and we needed new one. Tank cost at the time $970 or something like that so the guy through in a stack of fittings to increase the price to the $1000 max refund.

Interesting part was, the house was already 100% rainwater fed. The new tank was purely a header tank on a hill to gravity feed the house being topped up by a pump from the house main tanks. It did not increase the houses storage capacity and made no contribution reducing demand on the drought affected Gladstone city water supply.

The problem with these refund schemes at household level is that to minimise the overhead costs they have minimal scrutiny and the criteria is quite limited. There was all sorts of rots going on to buy small to edd sized tanks through friends and relatives. Claim the rebate and then on sell the new tank making a few hundred on each tank.
  don_dunstan Minister for Railways

Location: Adelaide proud
Your last comment Don, honestly please stay out of offering advice in investing.
RTT_Rules
Conceited aren't you Shane... the reality is that the ASX 200 is back to where is was 12 years ago, so if you're an average investor (not a super-duper investor with psychic powers like you are) then you really haven't done that well out of the stock market in the last decade or so.

And any fund managed by a bank is going to be dragged down if and when the banks go under. Westpac is the most likely candidate to ask for a bail-out first I heard the other day, their mortgage book is looking terrible with underwater customers.
  RTT_Rules Dr Beeching

Location: Dubai UAE
Your last comment Don, honestly please stay out of offering advice in investing.
Conceited aren't you Shane... the reality is that the ASX 200 is back to where is was 12 years ago, so if you're an average investor (not a super-duper investor with psychic powers like you are) then you really haven't done that well out of the stock market in the last decade or so.

And any fund managed by a bank is going to be dragged down if and when the banks go under. Westpac is the most likely candidate to ask for a bail-out first I heard the other day, their mortgage book is looking terrible with underwater customers.
don_dunstan
Dony boy,
you need to look at what was posted, not make things up and try and make it personal. Stick to the facts.

I mentioned last few years and so did the link, not 12 years ago. Last year alone was 8%, last 3mths was 9% (not sure if its annualised or actual, one is good, the other better). Even fixed interest funds give you 4-7% Australian Fixed interest fund.

Your worried about a fund sponsored by a bank in case it might go broke as an argument to stay with Term Deposits with the same bank, seriously? Anyway the answer is simple isn't it? Simply go into fund that isn't sponsored by a bank but you can still buy through your local bank to make it easy or go elsewhere. Seriously, its not that hard.  Also called diversity, spread your money around.

As for the super-duper investor with psychic powers, thanks for compliment but sorry that's not me. My wife started the investments with Managed Funds while here in Dubai, investing in AUD in Australia with both off-shore and on-shore and getting double digit returns after a few days research on line. So are you done with throwing labels/names at my wife?

As I said before, if you retired and have enough money in the bank that you are living off the interest from term deposits, then I would suspect you have enough nous to not even be considering this as your only option. If not, go talk to someone, or spend a few hours on line doing some research. If after all this you are still leaving your money in a term deposit, then good luck.
  don_dunstan Minister for Railways

Location: Adelaide proud
Your last comment Don, honestly please stay out of offering advice in investing.
Conceited aren't you Shane... the reality is that the ASX 200 is back to where is was 12 years ago, so if you're an average investor (not a super-duper investor with psychic powers like you are) then you really haven't done that well out of the stock market in the last decade or so.

And any fund managed by a bank is going to be dragged down if and when the banks go under. Westpac is the most likely candidate to ask for a bail-out first I heard the other day, their mortgage book is looking terrible with underwater customers.
Dony boy,
you need to look at what was posted, not make things up and try and make it personal. Stick to the facts.

I mentioned last few years and so did the link, not 12 years ago. Last year alone was 8%, last 3mths was 9% (not sure if its annualised or actual, one is good, the other better). Even fixed interest funds give you 4-7% Australian Fixed interest fund.

Your worried about a fund sponsored by a bank in case it might go broke as an argument to stay with Term Deposits with the same bank, seriously? Anyway the answer is simple isn't it? Simply go into fund that isn't sponsored by a bank but you can still buy through your local bank to make it easy or go elsewhere. Seriously, its not that hard.  Also called diversity, spread your money around.

As for the super-duper investor with psychic powers, thanks for compliment but sorry that's not me. My wife started the investments with Managed Funds while here in Dubai, investing in AUD in Australia with both off-shore and on-shore and getting double digit returns after a few days research on line. So are you done with throwing labels/names at my wife?

As I said before, if you retired and have enough money in the bank that you are living off the interest from term deposits, then I would suspect you have enough nous to not even be considering this as your only option. If not, go talk to someone, or spend a few hours on line doing some research. If after all this you are still leaving your money in a term deposit, then good luck.
RTT_Rules
Number one, I said nothing about your wife - it's you who have for some reason dragged her into it. Let's just pretend that didn't happen.

Number two, so how safe is your money a fund like that - really? Is there some sort of government guarantee if things go pear-shaped? What regulatory authority oversees it - is it on-shore here or off-shore? Those interest rates are really quite high considering the extremely low interest rates most retail things are paying in Australia right now - surely there's some accompanying pay-off in terms of risk.

The fact is saying to someone "you don't know anything about this" is frankly patronising and rude and I'm going to dish it out the same as I get it.
  Valvegear Dr Beeching

Location: Norda Fittazroy
With Morrison trying to distance himself from Government having  any responsibility for the AFP raids, he expects us to believe that someone in the AFP said, without any prompting at all, "We'd better investigate these journos. They might be doing something the government doesn't like."
Of course it wasn't government prompting; it was the Tooth Fairy.
  RTT_Rules Dr Beeching

Location: Dubai UAE
Number one, I said nothing about your wife - it's you who have for some reason dragged her into it. Let's just pretend that didn't happen.

Number two, so how safe is your money a fund like that - really? Is there some sort of government guarantee if things go pear-shaped? What regulatory authority oversees it - is it on-shore here or off-shore? Those interest rates are really quite high considering the extremely low interest rates most retail things are paying in Australia right now - surely there's some accompanying pay-off in terms of risk.

The fact is saying to someone "you don't know anything about this" is frankly patronising and rude and I'm going to dish it out the same as I get it.
don_dunstan
1) You did when you tried and failed to make a comment about me, which is why I have previously asked and later told you before to stick to the facts and don't go personal. Lets just leave it there shall we.

2) There is no govt guarantee on deposits in Australian banks and if the banking system collapsed, the Australian govt could not afford to repay the money lost. In Vic, the Pyramid collapse was covered by raising taxes and it was small scale enough. So basically all Victorians paid more tax to recover the funds lost by some. If this was one or more of the Big 4, do not expect your money back in full if at all.

Managed Funds of various sorts and shapes have been around for decades. If the funds are based in Aus, yes there are regulatory requirements, look it up. Funds cover all sorts of industries and locations, you can pick and choose, there are even ones that focus on RE, social responsibility(do not invest in alcohol, tobacco, etc), domestic, off-shore, share market, direct investment, infrastructure etc. Its the lazy mans way of investing in the share market and other, for which you pay a small fee. In general I think most people would be better off with Managed Fund than direct investment in the share market unless they actually Manage their shares which most of us don't. I think also removed any emotional link to the investment.

Managed Funds are just one form of investment, there are many others, Bank fixed interest would have to be one of the lowest earners which is why so little money is tied up in fixed interest these days and Australian banks source much of their loan money from OS.

3) Don, its very clear you don't know much about Managed Funds by the way you commented. Am I patronising, no, do I expect everyone in the world to know about this, no. Do I have any interest in trying to prove I know more than you on this, no. Do I have any benefit from telling you this, no. If you had asked questions about it (not I posted links at the time you clearly didn't look up) rather than go on the attack and a personal attack at that trying to defend your comments. I would responded differently. Again, lets just leave it there and if you have genuine comments on Managed Funds I'll again post links to where you can find the information on them the best I can.

And again I'll state that I believe most people who have sufficient cash to live of or significantly contribute to their retirement would not be simply placing their hard earned cash in the bank to merely get 2-2.5% interest. If they are doing that and able to live off the meager returns, then good for them. Maybe they are just being lazy or couldn't be bothered or want the flexibility, but to live off TD interest, you have to have close to $2m in the bank. Most of us at retirement have less and likely alot less than $0.5m in the bank at retirement + Super.
  don_dunstan Minister for Railways

Location: Adelaide proud
RTT_Rules: I don't care - the fact is that you're rude, patronising and judgemental. Please have a conversation with someone else, I'm over talking to you for a while.
  don_dunstan Minister for Railways

Location: Adelaide proud
With Morrison trying to distance himself from Government having  any responsibility for the AFP raids, he expects us to believe that someone in the AFP said, without any prompting at all, "We'd better investigate these journos. They might be doing something the government doesn't like."
Of course it wasn't government prompting; it was the Tooth Fairy.
Valvegear
The fact is that if they're thinking about all-encompassing mass surveillance then we have a right as the people who elect these turds to know what's going on.

Goes to show how little they trust us that they're planning these types of things to begin with. Dutton was completely wrong, they're both issues that the public has a right to know about.
  RTT_Rules Dr Beeching

Location: Dubai UAE
RTT_Rules: I don't care - the fact is that you're rude, patronising and judgemental. Please have a conversation with someone else, I'm over talking to you for a while.
don_dunstan


Again making it personal, think about, maybe go back and read your own posts.  


Back on topic,
the issue now appears that while interest rates are dropping, the govt isn't lowering the "deeming rates". The whole deeming process of deeming what some is earning in their nest egg is an insult to start with, but when first introduced it was set against typical fixed interest rates. Now they assume you are earning 3.5% on fixed interest, clearly unreasonable.

Interesting interview by the Pensioner and Super association, they are trying to both get govt to correct its error and  also encourage those retired on savings to consider other forms of investment.

For those people now at or close to retirement, you cannot even give away your assets to get the pension. They look at what you had up to 5 years before retiring. So giving away your as new Ford Phase III to Grandson Billy at age 62 and then retiring at age 67, they will deem you still have that asset. A further insult to retirees.
  Groundrelay Chief Commissioner

Location: Surrounded by Trolls!
Interesting interview by the Pensioner and Super association, they are trying to both get govt to correct its error and  also encourage those retired on savings to consider other forms of investment.
RTT_Rules
Which means taking on more risk.
Not that long ago someone approaching retirement was advised to switch to a conservative fund which was fine when a Term Deposit returned 8%. The ASX200 is back to pre GST highs and hasn't that been one long slog. Now what 65 year old is brave enough to move most of their super into equities when the market is at its highest.

Sponsored advertisement

Display from: