Super bill faces rocky road
Any feeling the Government's New Zealand Superannuation Bill was going to have an easy passage through the select committee process because it got cross party support at its introduction in Parliament are wrong.
ACT leader Richard Prebble showed in his self-billed "state of the nation" speech that any support ACT has shown for the bill is superficial.
"The Cullen scheme is at least doing something," Prebble says, "but the devil is in the detail with superannuation. With Cullen's scheme, the whole of hell is in the detail."
He says ACT intends to take finance minister Michael Cullen up on his willingness to accept constructive amendments.
ACT is clearly going to push hard for individual accounts. Likewise the Greens have talked about investing the fund ethically, yet they haven't articulated what they mean.
There are a number of different styles of ethical investing which range from the pure where you can't invest in stocks of companies which make things like alcohol, tobacco or munitions to "best of bred" a version which is normal investing with a green flavoured. Under this method a fund can invest in any sector (even the sin sectors) as long as the individual company is 'ethically' managed.
The other main concern is that the bill has been oversold to the public. That is, many people see it as being the panacea to the super conundrum and they don't need to save.
NZ Super is often talked about as being generous at 65 per cent of the net average weekly wage. But, as Investment Savings and Insurance Association chief executive Vance Arkinstall points out, that's 65 per cent for a married couple, not each individual. In reality the scheme will only provide a basic safety net.
Recommended for you
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
In the run-up to heavy losses expected at the end of the financial year, June has already reported consecutive weeks of adviser losses.
ASIC has banned a former NSW adviser from providing advice for 10 years for investing at least $14.8 million into a cryptocurrency-based scam.
ASIC has sent warning notices to social media finfluencers who it suspects are providing unlicensed financial advice to Australians as part of a global crackdown by international regulators.
