1 00:00:07,133 --> 00:00:10,413 Speaker 1: You're listening to the Saturday Morning with Jack Team podcast 2 00:00:10,573 --> 00:00:11,733 Speaker 1: from News Talks that Be. 3 00:00:12,693 --> 00:00:15,653 Speaker 2: And it's one of the sort of one of the 4 00:00:15,693 --> 00:00:21,053 Speaker 2: curious things about the structure of modern liberal democracies, whether 5 00:00:21,093 --> 00:00:26,413 Speaker 2: it's share markets or political cycles or even media coverage. Actually, 6 00:00:27,613 --> 00:00:31,173 Speaker 2: a lot of the big forces that shape our society, 7 00:00:31,173 --> 00:00:35,013 Speaker 2: that kind of shape our world, are influenced by short 8 00:00:35,093 --> 00:00:38,893 Speaker 2: term incentives and it gets us into all sorts of pickles. So, 9 00:00:39,573 --> 00:00:44,013 Speaker 2: for example, take three waters right in the crisis with 10 00:00:44,293 --> 00:00:47,613 Speaker 2: water infrastructure in New Zealand. The main reason we find 11 00:00:47,653 --> 00:00:52,213 Speaker 2: ourselves with a vast infrastructure deficit is because for decades 12 00:00:52,493 --> 00:00:56,973 Speaker 2: heaps of local councils haven't properly invested in maintaining the pipes. 13 00:00:57,373 --> 00:01:00,813 Speaker 2: Why didn't they invest, Well, it was simple. Investment takes money, 14 00:01:00,933 --> 00:01:05,613 Speaker 2: and money means rates, and with woefull levels of engagement 15 00:01:05,813 --> 00:01:09,693 Speaker 2: with local body elections, berg rates increases and pledges to 16 00:01:09,733 --> 00:01:12,813 Speaker 2: spend millions of dollars on water infrastructure that no one 17 00:01:12,813 --> 00:01:17,253 Speaker 2: could see or appreciate. Well, those weren't exactly vote winners. 18 00:01:18,093 --> 00:01:22,013 Speaker 2: Counselors who wanted to be re elected have been incentivized 19 00:01:22,293 --> 00:01:26,893 Speaker 2: to defer spending for the future. Someone else's problem. Predictably, 20 00:01:26,933 --> 00:01:32,973 Speaker 2: of course, the problem snowballed. I think we risk the 21 00:01:33,013 --> 00:01:36,853 Speaker 2: same thing with our aging population and the future of 22 00:01:37,213 --> 00:01:41,093 Speaker 2: superannuation in New Zealand. We know that in a few 23 00:01:41,133 --> 00:01:45,653 Speaker 2: short years, as more baby boomers retire, the cost of superannuation, 24 00:01:45,813 --> 00:01:48,133 Speaker 2: combined with the impact of an older population on the 25 00:01:48,133 --> 00:01:50,853 Speaker 2: health system, is going to massively increase pressure on the 26 00:01:50,893 --> 00:01:54,293 Speaker 2: government books. Treasury has been warning about it for ages 27 00:01:54,453 --> 00:01:56,853 Speaker 2: for yoonks. Now there are going to be fewer of 28 00:01:56,933 --> 00:02:00,573 Speaker 2: us of working age, supporting more of us who are retired. 29 00:02:01,253 --> 00:02:03,573 Speaker 2: And yet since the advent of Key we Save It, 30 00:02:03,613 --> 00:02:06,813 Speaker 2: there have been very few big steps to a dress 31 00:02:06,973 --> 00:02:11,533 Speaker 2: the fast approaching meteorite. I'm pleased this week to see 32 00:02:11,533 --> 00:02:14,213 Speaker 2: the government move on Key we Save for contributions. I 33 00:02:14,293 --> 00:02:17,573 Speaker 2: think it's well overdue and although yep, it's going to 34 00:02:17,573 --> 00:02:19,373 Speaker 2: be a burden for a lot of businesses at least 35 00:02:19,373 --> 00:02:22,693 Speaker 2: in the short term, I would personally support steps that 36 00:02:22,813 --> 00:02:26,413 Speaker 2: encourage a much greater rate of retirement saving for the future. 37 00:02:28,133 --> 00:02:31,733 Speaker 2: It's funny it kind of occurs to me that a 38 00:02:31,853 --> 00:02:36,413 Speaker 2: massively underrated component in the Australia versus New Zealand equation 39 00:02:36,573 --> 00:02:39,733 Speaker 2: is superannuation. We always talk about wages, but just think 40 00:02:39,773 --> 00:02:43,253 Speaker 2: about the differences in super between the two countries. So 41 00:02:43,293 --> 00:02:47,253 Speaker 2: saving for super is compulsory in Australia for starters, but 42 00:02:47,413 --> 00:02:50,453 Speaker 2: not only are wages higher across the ditch. In six 43 00:02:50,493 --> 00:02:55,813 Speaker 2: weeks the compulsory employer rate for superannuation goes to twelve percent. 44 00:02:56,813 --> 00:02:59,213 Speaker 2: We're slowly stepping it from three to four. The Aussies 45 00:02:59,253 --> 00:02:59,933 Speaker 2: are at twelve. 46 00:03:00,773 --> 00:03:00,933 Speaker 1: Now. 47 00:03:00,933 --> 00:03:04,293 Speaker 2: I'm not suggesting we instantly introduce a twelve percent rate here. 48 00:03:04,333 --> 00:03:06,853 Speaker 2: I mean, let's bee like businesses would be into the 49 00:03:06,853 --> 00:03:09,933 Speaker 2: ground if we did that, right, But it is interesting 50 00:03:09,973 --> 00:03:12,733 Speaker 2: to note that in Australia, for most workers, the tax 51 00:03:12,933 --> 00:03:16,493 Speaker 2: on employer contributions is much lower than the tax in 52 00:03:16,533 --> 00:03:20,613 Speaker 2: New Zealand. In the next few decades, Australians are set 53 00:03:20,613 --> 00:03:24,093 Speaker 2: to retire with hundreds of thousands of dollars more than 54 00:03:24,133 --> 00:03:28,013 Speaker 2: their New Zealand counterparts. I turned sixty five and twenty 55 00:03:28,013 --> 00:03:31,813 Speaker 2: seven years right. I have no expectation that superannuation in 56 00:03:31,893 --> 00:03:35,493 Speaker 2: its current form is going to exist exactly as it 57 00:03:35,533 --> 00:03:38,013 Speaker 2: is today by the time that I get there. And 58 00:03:38,053 --> 00:03:40,933 Speaker 2: I sort of honestly have a bit of a kind 59 00:03:40,973 --> 00:03:43,933 Speaker 2: of sense of fatalism about the whole thing. It just 60 00:03:43,973 --> 00:03:45,813 Speaker 2: feels inevitable to me that I'm going to be paying 61 00:03:45,853 --> 00:03:49,373 Speaker 2: for older generations to enjoy universal super, only for the 62 00:03:49,413 --> 00:03:52,493 Speaker 2: settings to finally change once I'm on the home straight 63 00:03:52,813 --> 00:03:56,333 Speaker 2: sixty five and I do find one thing about the 64 00:03:56,333 --> 00:03:59,213 Speaker 2: government's move this week really curious. So they've opened the 65 00:03:59,253 --> 00:04:03,253 Speaker 2: door to means testing key we Saver. Those who earn 66 00:04:03,293 --> 00:04:05,213 Speaker 2: more than one hundred and eighty thousand dollars a year 67 00:04:05,293 --> 00:04:10,013 Speaker 2: won't receive the government contribution. Now, I don't personally claim 68 00:04:10,053 --> 00:04:14,813 Speaker 2: to know what the best solution is, but there are 69 00:04:14,813 --> 00:04:18,773 Speaker 2: going to be many working New Zealanders wondering if means 70 00:04:18,813 --> 00:04:23,853 Speaker 2: testing key we Saver benefits is acceptable, why shouldn't superannuation 71 00:04:24,173 --> 00:04:25,093 Speaker 2: be means tested? 72 00:04:25,773 --> 00:04:28,853 Speaker 1: For more from Saturday Morning with Jack Tame, Listen live 73 00:04:28,933 --> 00:04:31,773 Speaker 1: to News Talks at B from nine am Saturday, or 74 00:04:31,853 --> 00:04:33,733 Speaker 1: follow the podcast on iHeartRadio.