In my opinion progressive State Governments in Victoria Australia have failed miserably and been costing local property ratepayers bigtime because it has failed to get the Local Government Defined Benefit Superannuation Scheme funding and investment arrangements right. In my living memory I recall that ratepayers have had to kick in $billions for the loses incurred by the Local Government Superannuation Scheme and local governments other merchant banking failures on at least three occassions.
Others might know the history better but i seem to recall the Kilmore area Council lifting rates by a massive 100% some years ago to cover for the losses incurred when their co-operative money market market MAV venture with other councils went broke, and during the Paul Keating recession we had to have other super funds went broke when the State Bank went broke. We forget history repeating itself but our policy makers are NOT protecting we ratepayers.
In my opinion it would be safer if NO NEW funds were put back in to cover the losses of the Local Government which are now running to several $billion because we would be risking losing it all again at the next financial crisis of which i estimate there will be several more. The Defined Benefit Schemes would be better funded on a Pay As You Go basis for current pensioners and so Councils would know how much it was really costing to employ all those extra staff and perhaps be a little more prudent in their hirings of staff in the future..
I urge Ratepayers to look at this issue to have the State Government pass the required legislation to stop this taxing drain on property owners and contact your local MP's to demand a change to protect our own incomes. If you dont, no one else will.
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