Treasurer wants power to control superannuation investments

Discussion in 'Superannuation, SMSF & Personal Insurance' started by shorty, 2nd Jun, 2021.

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  1. shorty

    shorty Well-Known Member

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    shorty, 2nd Jun, 2021
    #1
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    It probably has zero impact on markets as those investments wont be listed. The Treasuer determination would be to limit things like investing in a collective union pooled fund . Or it then lending to the Chinese to buy a farm in Australia.. And to suggest a single investment that will be prohibited is going to be $3 trillion is nonsense.

    Barnaby needs to make himself relevant as Katter is making more noise. Invite Pauline and you have the 3 stooges.
     
    Paul@PAS, 4th Jun, 2021
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  3. Trainee

    Trainee Well-Known Member

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    When you think about it, isnt this the case for any country that has a government run pension scheme? Even the Future Fund, for example.
     
    Trainee, 4th Jun, 2021
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  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Hmmm the future fund is independent and distant of super. The Treasurer cant even make laws to touch it. But ....

    The Treasurer and the Minister for Finance have oversight of the funds subject to the independence of the Board. This is Governed by a specific law :
    Public Governance, Performance and Accountability Act 2013. Its basically "look but dont touch".

    This is largely how many funds are run.

    SIS Act contains specific laws which allow "look" but "dont touch". A SMSF Trustee or Board cannot be subject to direction. (s58 SISA) The Treasurer rule is basically a road block mechnaism to allow Government a last right to stop misuse of Australian super funds contrary to national interests. eg Imagine if Hostplus and Rest decide to own a port 50% with a Chinese interest ?? This is why this new law is required. Super funds could be a backdoor.
     
    Paul@PAS, 4th Jun, 2021
    #4