IPA calls for end to “one size fits all” superannuation: Midday Roundup

The Institute of Public Accountants is urging the Government to adopt a demographic-centred superannuation framework that focuses on peoples’ interaction with superannuation rather than a “one size fits all” approach.

In the Institute’s pre-budget submission released today, chief executive officer, Andrew Conway, said: “A preferred system may be one that closely matches the level of taxpayer engagement at different age points.”

“Superannuation policy generally treats people as either saving for retirement or in (or transitioning to) retirement. A person starting out their career does not have the same level of engagement with superannuation as a baby boomer looking at retiring over the coming years.”

Treasurer puts pressure on Reserve Bank to cut rates

Treasurer Wayne Swan has put pressure on the Reserve Bank to cut rates in light of an expected budget surplus.

In his weekly economic note published yesterday, Swan defended returning the budget to surplus as “the responsible thing to do”.

“We reiterated our commitment to a surplus in the mid-year budget last November because, as I said clearly at that time, this ensures we’re not adding to price pressures in the economy, giving the Reserve Bank the maximum flexibility to cut interest rates if it thinks that’s necessary,” said Swan.

“As the Prime Minister noted during the week, those calling for further interest rate cuts should also be calling for a surplus, not opposing one.”

Sharemarket falls slightly at opening

The Australian sharemarket opened slightly lower on Monday ahead of the release of inflation data from the Australian Bureau of Statistics.

The fall occurred despite the Dow Jones finishing about 0.5% higher on Friday after Microsoft, McDonald’s and other major US corporations posted stronger profits.

At the market opening the benchmark S&P/ASX 200 index inched down 0.10% to 4,361.9 points and the broader All Ordinaries Index fell 0.09% to 4,440 points.

Spotless takeover talks with PEP continue

Industrial services company Spotless remains in talks with Pacific Equity Partners, with a deal still not guaranteed.

The private equity group made a hostile bid for Spotless in November 2011, and increased the value of its offer to around $711 million in December.

Spotless said the offer was too low and asked for a $32 million price index, but in February allowed PEP to conduct due diligence.

That due diligence process has since ended, and talks between the parties continue, Spotless said today.

“Spotless and PEP have been in ongoing dialogue during this period and continue to be in discussions to see whether a proposal could be put to Spotless shareholders which can be recommended by the Spotless board,” the company said in a statement.

“These discussions are yet to reach a conclusion.”