Catering For The 21st-Century Customer: Tips To Modernize Your Business

The world of business is changing at lightning speed. With customer demands and consumer habits evolving continually, modernization is key. If your business is lagging behind, and you’re keen to ensur...

News Company - avatar News Company

Treating suspected autism at 12 months of age improves children's language skills

The theory is that if therapies are started early enough, it might be possible to alter the trajectory of autism.ShutterstockTherapies given to infants before they receive a diagnosis of autism may le...

Andrew Whitehouse, Bennett Chair of Autism, Telethon Kids Institute, Univeristy of Western Australia, University of Western Australia - avatar Andrew Whitehouse, Bennett Chair of Autism, Telethon Kids Institute, Univeristy of Western Australia, University of Western Australia

Team-building exercises can be a waste of time. You achieve more by getting personal

The key to an effective team-builiding exercise is understanding a team is a social network built on connections between individuals.www.shutterstock.comSomeone we know recently told us about a team-b...

Julien Pollack, Associate Professor, University of Sydney - avatar Julien Pollack, Associate Professor, University of Sydney

Changing the Australian Constitution was always meant to be difficult – here's why

Debates about constitutional change in Australia inevitably raise the poor success rate of referendums. Only eight out of 44 attempts have ever succeeded and there has not been a successful constitut...

Anne Twomey, Professor of Constitutional Law, University of Sydney - avatar Anne Twomey, Professor of Constitutional Law, University of Sydney

Lights out! Clownfish can only hatch in the dark – which light pollution is taking away

Some 22% of the worlds' coastlines are exposed to artificial light at night. Emily Fobert, Author providedClownfish achieved worldwide fame following Finding Nemo, but it turns out these fish don&rsqu...

Emily Fobert, Research Associate, Flinders University - avatar Emily Fobert, Research Associate, Flinders University

An electronic chip that makes 'memories' is a step towards creating bionic brains

Researcher Taimur Ahmed holds the newly designed chip.Author providedWhat better way to build smarter computer chips than to mimic nature’s most perfect computer – the human brain?Being ab...

Sumeet Walia, Senior Lecturer and Vice Chancellor's Fellow, RMIT University - avatar Sumeet Walia, Senior Lecturer and Vice Chancellor's Fellow, RMIT University

As the federal government debates an Indigenous Voice, state and territories are pressing ahead

The Queensland treaty process is still in the early stages and negotiations will not begin for several years. But it's still a historic step forward for Indigenous communities.Tracey Nearmy/AAPQueensl...

Harry Hobbs, Lecturer, University of Technology Sydney - avatar Harry Hobbs, Lecturer, University of Technology Sydney

Your body as a weapon: the rise of the 'revenge body' online

A 'revenge body' is built to show someone how well you are doing without them. With the advent of social media the phenomenon is increasingly popular.ShutterstockMonths after a public breakup with her...

Mair Underwood, Lecturer in Anthropology and Sociology, The University of Queensland - avatar Mair Underwood, Lecturer in Anthropology and Sociology, The University of Queensland

Stop worrying about screen 'time'. It's your child’s screen experience that matters

Guidelines advise children under two shouldn't have any screen time, but most do anyway.Photo by Jelleke Vanooteghem on UnsplashMost (80%) Australian parents worry children spend too much time with sc...

Brittany Huber, Postdoctoral researcher, Swinburne University of Technology - avatar Brittany Huber, Postdoctoral researcher, Swinburne University of Technology

Finally, the NDIS will fund sex therapy. But it should cover sex workers too

Whether sex therapy should be a funded disability support has been controversial since the NDIS was rolled out.From shutterstock.comThe Administrative Appeals Tribunal recently granted a woman with mu...

Matthew Yau, Adjunct professor, College of Healthcare Sciences, James Cook University - avatar Matthew Yau, Adjunct professor, College of Healthcare Sciences, James Cook University

Politics with Michelle Grattan: Megan Davis on a First Nations Voice in the Constitution

Last week on this podcast we talked to Ken Wyatt about the government’s plan for a referendum – hopefully this parliamentary term – to recognise Indigenous Australians in the Constit...

Michelle Grattan, Professorial Fellow, University of Canberra - avatar Michelle Grattan, Professorial Fellow, University of Canberra

Team-building exercises can be a waste of time. You achieve more by getting personal

The key to an effective team-builiding exercise is understanding a team is a social network built on connections between individuals.www.shutterstock.comSomeone we know recently told us about a team-b...

The Conversation - avatar The Conversation

Americans focus on responding to earthquake damage, not preventing it, because they're unaware of their risk

Heavily built-up areas can experience more disastrous damage in an earthquake.AP Photo/Marcio Jose SanchezOn July 4 and 5, two major earthquakes, followed by several thousand smaller ones, struck Sout...

Matt Motta, Assistant Professor of Political Science, Oklahoma State University - avatar Matt Motta, Assistant Professor of Political Science, Oklahoma State University

Did we mishear Neil Armstrong's famous first words on the Moon?

It's the case of the missing 'a.'Nick Lehr/The Conversation via NASA, CC BY-SAOn July 20, 1969, an estimated 650 million people watched in suspense as Neil Armstrong descended a ladder towards the sur...

Melissa Michaud Baese-Berk, Associate Professor of Linguistics, University of Oregon - avatar Melissa Michaud Baese-Berk, Associate Professor of Linguistics, University of Oregon

Compulsory superannuation was sold to Australians on the basis that it would make us better off.

But as the government prepares for an independent inquiry into retirement incomes, new Grattan Institute research finds that increasing compulsory contributions from 9.5% of wages to 12%, as has been legislated, would leave many Australian workers poorer over their entire lifetimes.

They would sacrifice a significantly increased share of their lifetime wage in exchange for little or no increase in their retirement income.

The typical worker would lose about A$30,000 over her or his lifetime.

More compulsory super means lower wages

Superannuation delivers higher incomes in retirement at the expense of lower incomes while working.

Yet the superannuation lobby usually presents only one side of the pact, urging an increase in compulsory super to get the higher retirement incomes while ignoring the income that workers have to forgo to get them.

Compulsory super contributions are paid by employers. But they appear to come out of funds the employers would otherwise have spent on wages.

This means increases in compulsory super come at the expense of wage increases – something that was acknowledged when compulsory super was set up (indeed, it was part of the reason it was set up) and has been acknowledged by advocates of higher contributions, including the former opposition leader Bill Shorten).

Read more: Productivity Commission finds super a bad deal. And yes, it comes out of wages

Grattan Institute calculations suggest that lifting compulsory super to 12% by 2025 will take up to A$20 billion a year from workers’ pockets. For most, the trade-off isn’t worth it.

The reality is that most Australians can already look forward to a better living standard in retirement than they had while working – even if they interrupt their careers to care for children. Workers with interrupted employment histories lose super in retirement, but get larger part-pensions.

The poorest Australians get a clear pay rise when they retire: the age pension is worth more than their after-tax income while working.

Other Grattan Institute research finds retirees are more comfortable financially than any other group of Australians and are much less likely to suffer financial stress than working-age Australians.

It needn’t lead to better retirement

So what about Middle Australia?

Despite the “magic” of compound returns, just about all of the extra income from a higher super balance at retirement would be offset by lower pension payments, due to the pension assets test.

It is always possible the pension rules will change, but it isn’t usually regarded as wise to assess proposals on the basis of changes that haven’t happened and aren’t being suggested.

Pension payments themselves would also be lower under a 12% superannuation regime. They are benchmarked to wages, which would be lower if employers have to put more into super.

The graph below shows that the big winners from higher compulsory super would be the wealthiest 20% of Australian earners, who would benefit from extra super tax breaks and would be unlikely to receive the age pension anyway.

Higher compulsory super redistributes income from the middle to the top. Middle earners would be no better off.

Over a lifetime, it could be a net loss As higher compulsory super would leave Middle Australians no better off in retirement, but poorer while working, it follows that it would make them poorer over their entire lives. How much poorer? We calculate that, after adjusting for inflation, the typical (median) 30-year-old Australian worker earning A$58,000 today would lose about 2.5% of wages each year and get less than a 1% boost to retirement income. As a result, that person’s lifetime income would be almost 1% lower – about A$30,000 lower. A post published on the Grattan Blog today gives more detail on the method we used to calculate the impact of higher compulsory super on lifetime incomes. And it would cost the budget Higher compulsory super might be justified if it saved the budget money on the pension – because those savings could be used to compensate middle-income earners via lower taxes or more services. But in fact, higher super would cost the budget. Our modelling shows that lifting compulsory super to 12% of wages would cost taxpayers an extra A$2 billion to A$2.5 billion per year in super tax breaks, overwhelmingly directed at high-income earners. Read more: Myth busted. Boosting super would cost the budget more than it saved on age pensions Those extra super tax breaks would dwarf any budget savings on the age pension until about 2060 – by which time there would be 80 years of budget costs from compulsory super to pay back before the whole exercise saved the government money. Here’s the bottom line, worth keeping in mind in the lead-up to the independent inquiry: it’s hard to think of a policy less in the interests of working Australians than more compulsory super.

Authors: The Conversation

Read more http://theconversation.com/super-shock-more-compulsory-super-would-make-middle-australia-poorer-not-richer-120002