3.1 INTRODUCTION
This chapter provides a detailed background on Australia’s fund contribution which is better known as the superannuation. We will explain why we chose to do research on Australia’s fund contribution and expand on how the treatment of fund contribution differs from that of South Africa.
In countries like South Africa and the United State of America the head of state is referred to as the president while in Australia he/she (the head of state) is referred to as the prime minister. The terms president and prime minister are sporadically interchangeable terms for the same position. This is similar to retirement funds also known as pension systems.
Different states have different pension systems. These countries deal differently
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Private pension schemes were first introduced in Australia in the mid-19th century and the development can be divided into three periods being the first era which lasted until the 1940s where only selected salaried employees with an absolute source of retirement income where provided for by occupational superannuation. The second era was from 1950s this was when age pension was being tested and superannuation acted as a supplement of the age pension for most white-collar employees. Lastly the third era was from the year 1970 up until the official introduction of superannuation in the year 1986 which eventually became the mandatory occupation superannuation in 1992. Superannuation was an employment fringe benefit which was focused among professionals, manages, public sector employees, administration and workers in the financial sector. (Kewley, 1973). Policy reforms created by Government inquire and industry movements have assisted in the shaping of the current Australian superannuation industry today. In the first phase the superannuation rate increased from 4% to 9% between 1992 and 2002. Under more recent reforms, employers must now contribute at least 9.25% of payroll on behalf of their employees to a funded pension program which will incline to 12% by 2019. (Bateman and Mitchell,2001). Superannuation is a pension system used by Australians to save for
The push for Congress to pass legislation protecting the rights of employees and their retirement was inevitable. Retirement plans are extremely important for all working individuals. Having funds to keep or exceed ones current standard of living and to enjoy one’s life beyond expectations after retire...
Patrick, C 2004, The Guardian: Australia may hold key to pensions, 12 October 2004, retrieved 21 July 2006
Wayne Swan 2009, ‘Budget Speech 2009-10’, Australian Government. Retrieved May 20th, 2010, from - http://www.ato.gov.au/budget/2009-10/content/speech/html/speech.htm
In America’s early days before the kickoff of industry, there was little need for retirement savings for a few key reasons. First of all, people were dying at a much earlier age; most people didn’t live past 38, whereas in 1900, 60 years of age was common for about 40 percent of the population and 15 percent experienced 80 years of life. Another reason for the irrelevance of social security in the 19th century and earlier was that people were usually living rurally on farms with extended families to take care of them. Furthermore, the Civil War also didn’t allow the government much economic room to consider providing a service such as social security. However, after the Civil War, pensions were a form of social security for civil war veterans that carried into their retirement. Unfortunately these pensions provided support for only a very small portion of the population; not even one percent of Americans received these pensions. Despite a much lower need for social security in the 18th ...
The Prime Minister (PM) is the head of the Government and is the most senior minister in parliament.
Many of the powers of the PM are not written down. Although there is a
Many European countries have a prime minister. The United States has a president. In general, there are many different ways that presidents differ from prime ministers. The differences between the two, greatly depend on which country, we are comparing the differences to and which governmental laws are followed. These factors will be different for each country with a prime minister vs. a president.
In this country, social security is seen as a right based on a person’s need rather than something that people financially contribute to over the years to receive back (Herscovitch). When Australia first began its social welfare system, the idea of being different was appealing and it has stood the test of time. Like many social security systems, Australia’s network is very complex. Their support system assists Australians in need through age pension, disability support pension, carer payment, newstart allowance, youth allowance, and family tax benefit. These are just a few of the key payments for recipients in 2014 (“Australia’s Welfare
The liberals introduced an old age pension for people over seventy years old and with no other income. They also introduced a married couples pension. Pensions were not a new thing but the most radical thing about these pensions was that they were entirely government funded. The pension was not incredibly large and the average working class person did not live to be 70 but for those who did the pension made them independent. In the year after the introduction 80000 people stopped claiming relief from charities.
The decision for Australia to adopt the Federal system was on the principle of which the State’s governments wanted to keep their power. For this reason there was the separation of powers between the newly formed Commonwealth government and the existing State governments. At a constitutional level, there are rulings in which the powers are separated, these rulings due to disputes have slightly changed since 1901. These changes all fell towards the one government, the Commonwealth (Federal) government. However this was not just a landslide event, the Constitution of Australia set up this imbalance of powers between the Commonwealth and State governments. We will explore this further in the points discussed later in this essay.
The Prime Minister of Canada is the head of government and is appointed by the Governor General. Canada is the northern neighbor to the United States, and the Queen of England is its head of state. These powerful countries being so closely tied to Canada makes it a major player on the world stage, and gives considerable power to its Prime Ministers. There have been twenty-two Prime Ministers, with John Diefenbaker being the thirteenth, serving from 1957-1963, and Pierre Trudeau the fifteenth, who served 1968-1979 and again 1980-1984. Diefenbaker was a progressive conservative, a right-center group associated with British imperialism.
The Australian government will increase the age pension from 65 to 70 by 2035(Australian Department of Human services [AU]). This announcement has lots of challenges for Australian people who are under 50; some people support the rise and find it beneficial for the future economical life. However, others are against the announcement as it has lots of concerns for their future plan, as they have to work longer to save more for their retirement. The current population ageing put pressure on the young workers who support retirees and their families, at the same time it affect the economic development. So the rise of pension has advantages and disadvantages on the future life standard of most Australians. It is beneficial decision from the government to provide a productive and qualified future life.
Australia has had one of the most outstanding economies of the world in recent years - competitive, open and vibrant. The nation’s high economic performance stems from effective economic management and ongoing structural reform. Australia has a competitive and dynamic private sector and a skilled, flexible workforce. It also has a comprehensive economic policy framework in place. The economy is globally competitive and remains an attractive destination for investment. Australia has a sound, stable and modern institutional structure that provides certainty to businesses. For long time, Australia is a stable democratic country with strong growth, low inflation and low interest rate.(Ning)
During at elections one can notice a key difference between the two systems. In a parliamentary system the people of the nation elect a political party to represent their interests. Then the party that gains the majority of the votes elects, or may already have elected, someone to be their spokesperson who becomes the Prime Minister of said nation. In a presidential system, on the other hand, the people elect individual persons to become the President and members of the congress, in separate elections.
Lots of working people are scared when comes planning for their retirement day, as well as there are some of them are confident to face theirs restful years. This people who fear with their retired age are the person whose are lack of knowledge about financial matters so they will ignore their planning for retirement as long as they can. The effect is, they will try to continue to work as long as they can work. Recently, the Ministry of Human Resource’s Malaysia, increase the retirement age to 60 years old for government sectors. As Hunt (2009) state that Malaysian confident for their retirement have decrease rapidly in some way. According to Lai Cheng Tung & Jean Dennis Comeau (2012) the people who agree with the new retirement age as they claim that they required more retirement savings, increasing retirement age will increase the life expectancy, and this provide retention of talent or improving skill proficiency especially in expert job that need longer years of experience to master it. To support more agreeableness in increasing retirement age, based from Life Insurance Association of Malaysia (LIAM), 5% and less than that percent are prepared completely for their retirement (Habib, 2007). All of the statement showed that Malaysian are still good enough to continue working even most of them are lately around 60’s as a period for preparing themselves before retired.