We need serious economic reform in this country - Senate 10.10.24

Time to stop the rorts.

This speech focuses on reforming Capital markets and the policies PeopleFirst are implementing to do that.
These are:

1) Make Superannuation voluntary
2) Make Superannuation Boards hold annual AGMs so members can vote for the board members
3) Prevent Superannuation Funds from voting in company AGMs unless they get direct proxies from their members.
4) Use just one stock exchange.
5) Ban shorting.
6) Abolish payroll tax and fund it with a 1.5% turnover tax on shares and unhedged derivatives.

It goes without saying we cannot have unelected yes men and women controlling $3 trillion in capital. When you control that kind of money you control Industry.

It beggars belief how weak the Liberal party has been on the issue of corporate governance around Superannuation, especially given the Unions control it. But that’s the Liberal Party for you - weak and insipid.

The last point is very important. It is estimated around half of the shares traded on the ASX is by foreign owned high frequency traders that use automated algorithms. These HFTs scalp the market and manipulate share prices up and down using huge volumes. They often do this on behalf of large fund managers to manipulate the price lower so they can buy cheaply. It’s collusion and it stifles true price discovery.

The funds raised assuming a drop of 30% in turnover on the ASX could fund the abolition of Payroll tax. This is productivity destroying tax that is compliance heavy.

While an agreement with the States would have to be made provided they were all better off you could make it happen.

It is crazy to reward speculators gambling but not employers who are producing.

The existing Government policy is only destroying productivity.

#auspol #australia #superannuation #economy #capitalmarkets