How do you pay off a trillion dollars in government debt when you are smashing the economy by an impossible jihad to change the weather called Net Zero? Answer, you pay it off with someone else’s savings. The trillions that Australians were told were safe in superannuation is the solution.
Since its inception under Paul Keating, we were told superannuation was sacrosanct. It was to cover the fact that it would be impossible for the
Government to properly pay for retirees an amount of money that could sustain their standard of living to a reasonable level. People were told to trust the Government their money was safe. But now the Government, rather than acknowledge super was to pay a cost that the Government couldn’t cover, are covering the cost of further Government expenditure which the superannuant never had a say in the spending.
Compulsory superannuation was guided by accountants who were given the remit to legally minimise your tax. There is no nefarious purpose in people transferring or buying assets for their super fund. The Government said we had to have super and the people invested in their super fund. For many on the land the assets that they placed in their super fund was the family farm because this is what they were advised to do by their accountant and their accountant had no knowledge aforethought that this would be a very bad idea.
But the nasty bitey bit is coming now thanks to the Labor Party. Many farms, if they can provide a living for the family, are worth vastly in excess of $3 million. But farms are like a third parent. With most family farms there is no intention of selling them, in fact it is looked on as failure or treachery if a family member sells the farm out of the family. Once a family farm is sold it can never be bought back.
As the globe is not creating more farming country and as the population of the globe races towards eight billion people that can’t properly feed themselves, the value of land and farm produce is going up. In fact, farm land has been appreciating at around 18% per year. This is just a figure on the books because there is no intention of selling the asset, however the Labor Party is going to tax Australians 30% on the increase on the book value of an asset even though it hasn’t been sold.
So, let’s go through the figures. $5 million for a farm that can support a family is not unreasonable at all, in fact it might be a bit light-on. Now, if this farm is in the super fund then an 18% increase would mean an unrealised capital gain of $900,000. If $900,000 is taxed at 30% that is $270,000 that family has to find to pay Dr Jim Chalmers. If a farm worth $5 million could make a $270,000 profit they would be genius farmers. Not only is it one-off, it could be every year including droughts. As corporate farming buys out family farms and overseas buyers buy out Australians without any government wanting to do very much about it, family farms are going to be pushed further into the history books of Australia. As farms become bigger the number of people supplying the market for your food becomes smaller and inevitably makes the price of food larger. This combines with a bat poo crazy idea of Net Zero emissions by 2050 and further restrictions on how farmers operate their farms to placate the great god Gaia and his environmental policies which exacerbates the cost of food you see in shops today.
Remember everybody ridiculing me about my claim there would be $100 Sunday lamb roasts because of environmental policies such as the carbon tax, with lamb selling now at over $50/kg in the shops you’ve got it. Remember when I lost my job as the Shadow Finance Minister when debt was around $100 billion because I had the temerity to say if you keep spending money on the trajectory you’re spending it the gross debt will race through half a trillion dollars and all the wise sages from the Secretary of the Treasury to the Governor of the Reserve Bank chuckled at how silly I was to say such a thing. Well, it’s now gone through a trillion dollars and I’m still waiting for them to pop their chuckling heads back up and say they were wrong.
So, here are two things, one we should not start doing and the next we should stop. We should not start doing the raiding of superannuation to pay back government debt. If you need to pay back government debt you do it by having an economy that has the capacity to service the debt and repay the principle, otherwise you should never have borrowed the money in the first place. Number two, if you want an economy that can service a debt and repay the principle you must remove this ludicrous and dangerous attachment to a social policy that will have no effect on the weather but will merely inspire the faux virtue one gets from aspiring to the impossible Net Zero by 2050. If you pursue Net Zero you will never attain Net Zero nor change the weather but you will blast the economy out of the water. If you go in hot pursuit of Net Zero you are a fool and if you take someone’s savings you are a thief.
