Industry and business are making hard yards of it, especially those that rely on cash flow for survival, which basically is all of them. Cash in terms of cash flow is a generic name for all sorts of receipts, cheque, credit card, money transfer, cash itself.
Who follows the rules, well mostly everyone, but it depends what those rules are and how strict the authorities are.
Lets discuss Super(annuation).
Private Super funds have to follow very strict rules, even the Mum and Dad ones, they work under the Corporations Act, which has to have every T crossed and every I dotted. They are taxed on every dollar made after deductions and are strictly followed by APRA and the ATO (Australian Prudential Regulatory Authority and Australian Taxation Office).
Industry Super funds basically get to follow the same rules as bowling clubs, even though they have $Billions under control, APRA and the ATO treat them as non-profit organisations, their taxation structure and investment structures are different to Private Super funds.
A certain cash component has to kept by Private Super and the Banks, in case of demand, this rule does not apply to Industry Super.
This means the reporting rules are more factual for Private Super and Banks than those for Industry Super.
This means that Industry Super can basically "lie" about its returns and its overall value, hence the reason Industry Funds have "topped" the lists of all Super funds in previous years.
Now that the current National Government, in this cash strapped time of virus, has decided to let punters access to their super, $10k this financial year and $10k next financial year (with any penalties put aside) for living expenses, the Industry Funds are begging for a bailout.
Let them eat cake I say.
Private Super can afford a slight run on themselves because they keep 20% in cash, a rule of thumb is a run will only be 20%, so the Private Super Funds keep their value of overall funds.
Industry Funds however will have to sell shares to cover a 20% run, which means selling shares (which have basically dropped 20% in the last 6 weeks because of virus), so the overall cash value will be 20% lower.
In a nutshell, Private Super will lose only 20% of value, Industry Super will lose 40% of value, when things are brought to account.
These figures are all rough outlines but this is the impact of a Union run ponzi scheme, like previous Union shop outlets and the Solo petrol stations, all closed because of poorly thought out objectives, poor management, and downright theft that is endemic in the labour movement.
Gonna go and spend some money now on coffee and breakfast, keep those wheels greased, in the private sector that is.
A certain cash component has to kept by Private Super and the Banks, in case of demand, this rule does not apply to Industry Super.
This means the reporting rules are more factual for Private Super and Banks than those for Industry Super.
This means that Industry Super can basically "lie" about its returns and its overall value, hence the reason Industry Funds have "topped" the lists of all Super funds in previous years.
Now that the current National Government, in this cash strapped time of virus, has decided to let punters access to their super, $10k this financial year and $10k next financial year (with any penalties put aside) for living expenses, the Industry Funds are begging for a bailout.
Let them eat cake I say.
Private Super can afford a slight run on themselves because they keep 20% in cash, a rule of thumb is a run will only be 20%, so the Private Super Funds keep their value of overall funds.
Industry Funds however will have to sell shares to cover a 20% run, which means selling shares (which have basically dropped 20% in the last 6 weeks because of virus), so the overall cash value will be 20% lower.
In a nutshell, Private Super will lose only 20% of value, Industry Super will lose 40% of value, when things are brought to account.
These figures are all rough outlines but this is the impact of a Union run ponzi scheme, like previous Union shop outlets and the Solo petrol stations, all closed because of poorly thought out objectives, poor management, and downright theft that is endemic in the labour movement.
Gonna go and spend some money now on coffee and breakfast, keep those wheels greased, in the private sector that is.
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