Australia reflections

 I spent the last 6 weeks in Australia, the visit confirming my view that Australian political, economic and retirement income issues mirror in so many similar ways, the NZ situation. Researchers and politicians need to spend more time assessing reports and issues emerging in both Australia and NZ-the many similarities, mean policy analysis and research work has often been done already, trends apparent, learn from others, and do not reinvent the wheel! Do not fool ourselves we have unique situations, we mirror others on most key issues, answers often available.

SUPERANNUATION

Despite the Australian Retirement income 11% Superannuation Guarantee contributions to individual Super Fund members, the recent Flinders Research survey results, found 23% of Aussies (5 million) admit they do not have enough money in their super fund or investments to get by in retirement. A further 25% admit they are not sure if they will have enough money to survive once they leave the paid workforce. Women are worse off, with 27% insufficient funds.

Australia has a complicated tax system and means tests incomes. I watched with great interest, a Super forum discussion on Australian tax concessions, with one of the Commentators stating “Australia will at some point, have to consider adopting the NZ model of Superannuation” a more simple and efficient method of approaching retirement income matters.” Unfortunately, I was not able to catch his name, but I did stand up and applaud!!!

RETURNING TO THE FAMILY HOME

Australians are moving back in with their parents. Flinders research1/10 either moved back home, or had an adult child return home. As we know the trend for years has been for children of parents not leaving the family home, or returning following work experience or relationship breakups. This has an economic cost to parents, and erodes retirement savings.

DIGITAL LITERACY

Australia runs several Literacy connections to boost senior online skills, with the Govt recently announcing a $42 Million boost to their Connected program approach. I am not impressed here in NZ with the Governments approach to this topic, policy announcements yes, but practical help is hard to access, and an apparent disregard that well over half a million New Zealanders do not have connectivity or technical skills sufficient to use e-mail or internet applications. Hard copy and on line applications  should run hand in hand, its neither one or the other, full choice of either option please.

 NIMBY/YIMBY GENERATIONAL DIVIDE

 The Susan McKinnon foundation study found younger Australians are open to more housing density, but older generations are not. This issue relates to NZ, with NZ’s approach to huge homes, and traditional stand-alone housing, a huge factor in the ongoing housing crisis. Councils bowing to pressure from the wealthy on this issue, is a disgrace. The Sydney study confirmed older generation were comfortable with the status quo, and younger folk demanding change, afraid they will not be able to afford to live in their own  suburb.

 MERCERS INVESTMENT FUNDS RANKINGS

Mercers fund managers rankings are keenly sought. In the one-year rankings, First Sen tier Australian Equities Growth Fund, Merlon Concentrated Value Strategy, Lazard Select Australian Equities, Auscap Long Short, Australian Equities and the Small Co Broad Cap fund led the list. They also featured strongly in the funds that performed over longer periods of time.

 Noticed headlines in various industries, also shareholder resistance emerging re Executive remuneration. Grossly overpaid senior staff with silly bonus incentives which do not work and cannot be measured abound. Its not the politics of envy here, it is the necessity to tackle obscene overpayment of individuals, a societal issue across all Western democracies.

 AGED CARE

Delays in aged care reform in the headlines. A new act and streamlined home care is under review, following a Royal Commission report and associated recommendations.

“Staff shortages curtailing aged care: was the headline in the Australian October 3, a situation very similar to NZ. Like us here in NZ -years of political neglect- we require a Committee of Enquiry or similar body, and remember the work has probably been done already in the Aussie report – to address aged care which in my view is in crisis her at home.  Linked to these key issues are overpaid Chief Executives, providing poor leadership over many years, in addressing needs! and Governments ignoring warning signs of problems emerging.

        Quote of the trip

What we really ought to be doing is focusing on health span, focusing on what does the final decade of my life look like physically, cognitively, emotionally.

Dr Peter Attia

 Attia’s article focused on a range of issues, making the point exercise (movement) every day of your life is so important, and poor socio-economic status is aligned to poor health. Tax equity, Land and Capital Gains tax, wealth tax all play a role here

 MOBILITY SCOOTERS

A snippet of info here is the health risk for those buying mobile scooters, less movement, raises the health risk- be wary of the marketing hype with scooter, electric cycles, and mobility scooter, stay of them if you can!

 Co Management

I did not hear co-governance mentioned while away, I thought we had sorted that term out with a change to co-management, but no the term is still thrown around in NZ

 

Okay. Let us hope the think tanks, Government advisors. MMP parties research units and policy advisors including Treasury are assessing closely what is happening in Aussie,  and using that info to assist our own decision making?