Eureka! It's Murray's missing point

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Banks are announcing multi billion dollar profits and Alan Kohler thinks margins have been squeezed and banks are beating each other up. What with, a feather ?


Its good that we have nice strong banks which are a critical component in our economy.Just look at what the Global Financial Crisis did to countries with weak banks.And the big four Australian banks share registers are dominated by the superannuation funds of Australians.An ideal situation I would have thought.And no I have never worked for a bank.


It was the $38bn coughed up by Australian Bank shareholders during the GFC which made the difference.

And a very good investment it turned out to be.


it's lets cut down a tall poppy time.
We have the world's safest banks, the worlds most profitable banks, and from an average 'pleb' person's veiwpoint who uses European , Asian and US banks, Australia has the world's best service at the best lowest cost. _ did you know it cost $25usd just the do an account to account transfer from a US to US bank - more if you have to transfer across state lines. and another $5us the receive the funds- crazy!!!
This 'inquiry' reminds me of the anti trust court cases in the US where the US govt devastated Microsoft because it offered a free internet browser in its windows package I.E 7 from memory. Microsoft was doing well so let's smash it! Careful for what you wish for banking customers I'm sure you will be looked after by your only choice in Australian banking the GOOGLE bank. Hope you like mega fees with that!


Fofa is 'the only attempt to deal with the (superannuation) problem? Uhh, what about the Stronger Super reforms including SuperStream and MySuper? These were the biggest changes to the industry since Choice of Fund, if not the SIS Act itself.


I imagine one part of Murray's task will be to look at unscrupulous market players who attempt to manipulate the market i.e. short and distort, pump and dump, ghosting, etc, and action to be taken against them.


Superannuation is far from the mess that AK thinks it is.It has produced an enormous pool of national savings.If Alan goes back and looks at the amount of money raised by share issues of our big companies during the depth of the GFC as a proportion of total market capitalisation and compares that with all other western economies it will immediately become apparent that the superannuation system both large funds and SMSFs collectively recapitalised their balance sheets to a degree that happened in no other economy..Without this occurring business would have slowed far more than it did and our banks certainly would not have been able to sustain their level of lending. Our superannuation system is still building because many older Australians only began to acquire superannuation balances in middle age whereas young members of the workforce have started accumulating superannuation from the moment that they entered the workforce. Our national propensity to save was abysmal before universal superannuation and this created much greater concerns about foreign debt.The worst forms of superannuation product being the old life insurance type policies adapted to superannuation disappeared years ago.Costs have continuously come down driven in part by the point at which accumulated assets can be transferred into SMSF format. Much of the current noise about SMSFs is based on false statistics leading some to believe that they are massive buyers of residential rental properties.The truth is that the tax office statistics do not differentiate between types of property and most of the property of SMSFs is in reality the commercial,industrial or retail premises occupied by the businesses run by the members of the fund.There is a good chance that your local dentist or veterinary surgeon own their premises inside their family superannuation fund as do a wide variety of other businesses.Commentators mistakenly believe that all the property owned by SMSFs is residential which is patently nonsense.They make the same mistake in respect of negative gearing because individual tax returns do not identify the types of property.Business premises owned by superannuation funds have to have their market rent and value determined at regular intervals by real estate valuers.However we have seen beat ups by those opposed to SMSFs alleging that they are buying up a vast amount of residential property which is simply not true.I see the returns of several hundred funds and while many own business premises I detect very little appetite for high rise rental units..The opposition comes from spokespersons for industry and managed funds disturbed that their customers keep rolling their super into SMSFs.That simply says that they need to do more to maintain their customer relationships.Since commentators are universally parroting the message that Australia needs more infrastructure the way to pay for it is to package existing infrastucture up into unit trusts with management companies stapled and offer it to superannuation funds at competitive returns and then use the money raised to finance the additional infrastructure we need.For example by converting more of Melbourne's freeways to toll roads,selling them via the market which will place most of the investment into super funds then using the capital raised to fund the rail projects Melbourne needs.