1 00:00:00,040 --> 00:00:03,079 Speaker 1: The retirement sect to getting some attention bills drawn eleven 2 00:00:03,120 --> 00:00:06,880 Speaker 1: thousand submissions expected to be introduced midnext year. Key changes 3 00:00:06,880 --> 00:00:09,719 Speaker 1: will include refunds paid no later than twelve months after 4 00:00:09,720 --> 00:00:13,200 Speaker 1: the units vacated, weekly fee stopping immediately when the resident leaves, 5 00:00:13,240 --> 00:00:15,880 Speaker 1: and the new process for former residents to apply for 6 00:00:15,920 --> 00:00:18,800 Speaker 1: early access to funds and cases of specific needs. So 7 00:00:18,840 --> 00:00:20,160 Speaker 1: what do we make of all of this, Jane Wright? 8 00:00:20,200 --> 00:00:22,560 Speaker 1: Since the retirement commissioner and there's with us, Jane, very 9 00:00:22,560 --> 00:00:23,160 Speaker 1: good morning to. 10 00:00:23,160 --> 00:00:24,680 Speaker 2: You, good morning. 11 00:00:24,720 --> 00:00:26,239 Speaker 1: May have they got it covered with this. 12 00:00:27,920 --> 00:00:31,000 Speaker 2: Pretty much? Yes? This has been a five year process, 13 00:00:31,040 --> 00:00:38,400 Speaker 2: with painstaking consultation and assessing various sets of arguments. The 14 00:00:38,440 --> 00:00:42,360 Speaker 2: Government's done a very careful balancing at going straight through 15 00:00:42,360 --> 00:00:45,360 Speaker 2: the middle of most of the disputes. I think both parties, 16 00:00:45,440 --> 00:00:49,280 Speaker 2: the operators and the residents are pleased about some things 17 00:00:49,320 --> 00:00:51,600 Speaker 2: and not so pleased about others, which suggests to me 18 00:00:51,680 --> 00:00:52,640 Speaker 2: it's mostly right. 19 00:00:53,200 --> 00:00:57,120 Speaker 1: Is the industry problematic because the industry is problematic or 20 00:00:57,160 --> 00:00:59,600 Speaker 1: because of rules and regulations that needed changes? 21 00:01:00,240 --> 00:01:00,360 Speaker 2: Is it? 22 00:01:00,440 --> 00:01:01,200 Speaker 1: They're are the rules? 23 00:01:02,680 --> 00:01:05,520 Speaker 2: I think as largely the rules. The Act's over twenty 24 00:01:05,600 --> 00:01:07,800 Speaker 2: years old now and it was written in a very 25 00:01:07,840 --> 00:01:10,800 Speaker 2: different time with the fledgery industry. Now, the industry is, 26 00:01:10,840 --> 00:01:14,839 Speaker 2: as you know, is large and growing, dominated by six 27 00:01:14,959 --> 00:01:17,640 Speaker 2: large players and a number of smaller ones. And the 28 00:01:17,680 --> 00:01:20,319 Speaker 2: difficulty around all of this has been trying to balance 29 00:01:20,440 --> 00:01:24,679 Speaker 2: the rights and obligations of both residents and operators. So 30 00:01:25,360 --> 00:01:29,640 Speaker 2: a lot of the criticism around things like repayment of 31 00:01:30,240 --> 00:01:33,160 Speaker 2: capital sum after twelve months, which is not unreasonable in 32 00:01:33,200 --> 00:01:35,800 Speaker 2: my view. In fact, it could be shorter. Some of 33 00:01:35,840 --> 00:01:37,680 Speaker 2: the opposition to that will be that the village is 34 00:01:37,720 --> 00:01:40,200 Speaker 2: simply can't afford it, and you go, well, some of 35 00:01:40,240 --> 00:01:42,480 Speaker 2: this is the market speaking, Yes, I think they can. 36 00:01:42,920 --> 00:01:45,399 Speaker 2: But if it's a small village of less than fifty units, 37 00:01:45,400 --> 00:01:48,560 Speaker 2: there's a provision already built into that that will give 38 00:01:48,560 --> 00:01:51,360 Speaker 2: them an exemption. So there's a fair bit of rattitude 39 00:01:51,400 --> 00:01:54,120 Speaker 2: built into what will be the new legislation. 40 00:01:54,560 --> 00:01:57,600 Speaker 1: What happened to the eyes wide open scenario, which is, 41 00:01:57,680 --> 00:01:59,240 Speaker 1: you know, all the complaints seem to be to me, 42 00:01:59,400 --> 00:02:01,840 Speaker 1: correct me if I wrong that you knew what the 43 00:02:01,920 --> 00:02:04,000 Speaker 1: deal was going in. Now you may not be happy 44 00:02:04,040 --> 00:02:06,160 Speaker 1: at the other end, but you did know what it 45 00:02:06,280 --> 00:02:08,400 Speaker 1: was going in or has that not been the case? 46 00:02:09,240 --> 00:02:11,760 Speaker 2: Well, that's that's the caveat into a principle. You know, 47 00:02:11,840 --> 00:02:14,040 Speaker 2: let the buyer beware. That doesn't mean there are no 48 00:02:14,200 --> 00:02:19,000 Speaker 2: consumer protections, right, and consumer protections have changed over the 49 00:02:19,040 --> 00:02:23,040 Speaker 2: last twenty something years. So this overhaul was an effect 50 00:02:23,040 --> 00:02:25,799 Speaker 2: about rebalancing the rights and responsibilities of. 51 00:02:25,840 --> 00:02:31,400 Speaker 1: Each Okay, by the way, Trump is suggesting this morning, 52 00:02:31,760 --> 00:02:33,640 Speaker 1: don't freak out when I use that word, and this 53 00:02:33,760 --> 00:02:36,079 Speaker 1: question is coming out of left field to you. He's 54 00:02:36,120 --> 00:02:38,880 Speaker 1: looking at an Australian style retirement program. He's had a 55 00:02:38,880 --> 00:02:42,040 Speaker 1: look at Australia. You know, your worker contributes, worker, the 56 00:02:42,120 --> 00:02:45,160 Speaker 1: worker employer contributes. He says, it works. Well, it's a 57 00:02:45,160 --> 00:02:47,760 Speaker 1: good plan he's looking to implement in America. If you 58 00:02:47,800 --> 00:02:50,960 Speaker 1: could magic wand retirement, would you look at Australia as 59 00:02:50,960 --> 00:02:51,680 Speaker 1: a great example. 60 00:02:53,160 --> 00:02:56,880 Speaker 2: If I could magic wand at thirty years ago, probably yes. 61 00:02:58,040 --> 00:03:01,480 Speaker 2: What's interesting to know about the Australian superannuation system is 62 00:03:01,520 --> 00:03:04,200 Speaker 2: that while that sounds very good and principle and it is, 63 00:03:04,280 --> 00:03:07,080 Speaker 2: because there's twelve percent of a word, contributions going in 64 00:03:07,320 --> 00:03:11,800 Speaker 2: a routinely first three that's on top of pay, not 65 00:03:11,919 --> 00:03:16,160 Speaker 2: within pay. So that's interesting. And secondly, that's underpinned by 66 00:03:16,400 --> 00:03:19,840 Speaker 2: really heavy SAT tax subsidies, and if you add up 67 00:03:19,880 --> 00:03:23,200 Speaker 2: the tax subsidies in Australia, they're not far off that 68 00:03:23,480 --> 00:03:26,760 Speaker 2: the overall cost of enzed super. So then you go 69 00:03:26,880 --> 00:03:29,720 Speaker 2: which is better? And enzed super is not connected to 70 00:03:29,720 --> 00:03:34,360 Speaker 2: the labor market, it's gender blind. It's more fair and 71 00:03:34,400 --> 00:03:38,280 Speaker 2: equitable than a tax based system based on your employment history, 72 00:03:38,280 --> 00:03:42,040 Speaker 2: which of course doesn't necessarily address very well the issues 73 00:03:42,040 --> 00:03:43,800 Speaker 2: of people who come in and out of the workforce 74 00:03:43,840 --> 00:03:44,320 Speaker 2: over time. 75 00:03:44,520 --> 00:03:46,840 Speaker 1: No good answer, Well done, Appreciate it very much. Jane wrtson, 76 00:03:46,840 --> 00:03:50,280 Speaker 1: who's the Retirement Commissioner? This morning? For more from the 77 00:03:50,360 --> 00:03:53,400 Speaker 1: Mic Asking Breakfast, listen live to news talks that'd be 78 00:03:53,520 --> 00:03:57,360 Speaker 1: from six am weekdays, or follow the podcast on iHeartRadio.