I'm Australian and read a story about this sovereign fund yesterday. It's been on my mind since. The Norwegian funds works out at roughly $200k per person. Not sure if Australia's Future Fund is a fair comparison in any way, but that is roughly $4-5k/person. Someone else has noted that superannuation works out at roughly $70k/person, but I don't think that is much of a equal to what Norway have done?
While governments here have gradually privatised various state-owned entities, Norway has built fair, national strength. StatOil is Norwegian. It's not going to play capital strike and up and leave if the political climate doesn't suit it was Rinehart threatens and mining tax opponents claim.
It amazes me that the mining tax hot potato of recent politics in Australia was ever an issue. Surely that was a great opportunity to do something similar either short term or long-term for Australia?
Compulsory super isn't directly analogous to the sovereign wealth situation, because the government can't dip into it.however, it receives tax revenues from growth in super investments, which are now nearly 1.5 Trillon, and because most workers who will retire over the next 15 years should have enough super to live out their lives on (hopefully combined with home equity, especially if you live in a capital city), then the government doesn't have the pension demands which are bankrupting states in America.
It's not an ideal situation, much more free market, but it's one of the greatest moves by an Australian government ever in my opinion
While governments here have gradually privatised various state-owned entities, Norway has built fair, national strength. StatOil is Norwegian. It's not going to play capital strike and up and leave if the political climate doesn't suit it was Rinehart threatens and mining tax opponents claim.
It amazes me that the mining tax hot potato of recent politics in Australia was ever an issue. Surely that was a great opportunity to do something similar either short term or long-term for Australia?