We maybe losing control over our super

Published in the Australian National Review, April 2015 by Dale Gillham

These days we want more control over our super, not less. However, it appears that the time for Australians to have full control over where our money is invested may be coming to an end.

For a long time, I have said that it was just a matter of time before governments would tinker with our super, and there is talk at the moment that with the release of the next Federal budget, as well as more cuts, there will be changes to superannuation. The government may decide to set a mandate for superannuation, which would require all super funds to comply, SMSFs included, stipulating that you must have a certain percentage of your funds in government infrastructure bonds.

Now, I don't know how you feel about that, but I for one do not want to be dictated to as to where my super money goes. Chances are, you won't be happy about this either, particularly if you have a SMSF, given the low returns that you could typically expect to receive with government bonds.

Now the big corporates have been pushing the government to spend on infrastructure, so they are unlikely to oppose such a mandate, but they might not be pleased if the government asks companies to contribute more to super as a way to keep opponents of a mandate from blocking it.

So what do we expect in the market?

This week it was business as usual on the Australian market at the start of the week, however, overseas markets took a dive on Wednesday night and the Australian market followed suit, losing around 87 points on Thursday. The market closed at around 5850 points and is likely to continue lower into the end of the week.

When you look at the rise so far this year, the fall doesn't look much. This is why it is important as an investor or trader to consider the bigger picture when you hear about the day to day moves on the market. Remember too, that the analysis has indicated for some time that the market would settle down and pull back for a couple of weeks in March. The fall has come right at the end of the month, and therefore we may see a decline that is short and sharp as it tests support for the next rise.

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