Mr SLIPPER (Parliamentary Secretary to the Minister for Finance and Administration) (11:12 AM) —I move:

Over recent years there has been a growing realisation throughout Australian society of the importance of retirement planning and saving for the years ahead. Superannuation is seen as a vital element in planning for a comfortable and secure retirement.

This bill, together with the Superannuation (Government Co-contribution for Low Income Earners) Bill 2002 will fulfil two election commitments, announced on 5 November 2001 in `A Better Superannuation System' to make superannuation more attractive and support the government's retirement incomes policy.

The government co-contribution is expected to increase the numbers of low-income earners making personal superannuation contributions and increase the levels of contributions being made by existing contributors. More generally, the government co-contribution will boost retirement savings for low-income earners.

The details of the arrangements for the government to pay superannuation co-contributions to low-income earners are contained in the Superannuation (Government Co-contribution for Low Income Earners) Bill 2002.

The Superannuation Legislation Amendment Bill 2002 will amend a number of taxation and superannuation laws. In particular, this bill will deal with the following aspects of the government co-contribution measure: eligibility for and taxation treatment of government co-contributions; arrangements for certain defence personnel and Commonwealth public servants regarding co-contributions, use of the Superannuation Holding Accounts Reserve for co-contributions in some circumstances and a review of certain decisions. This bill will also repeal the existing personal superannuation contribution taxation rebate found in the Income Tax Assessment Act 1936. In addition, this bill will reduce the maximum superannuation and termination payments surcharge rates from 15 per cent to 10.5 per cent over the next three years.

Full details of the measures in this bill are contained in the explanatory memorandum. I commend the bill to the House and present the explanatory memorandum.

Debate (on motion by Mr Edwards) adjourned.