Mr McClelland asked the Attorney-General, upon notice, on 4 February 2003:

(1) Has he sought advice in respect to the differential superannuation entitlements of employees working beyond the age of 70.

(2) Will the Government take legislative or other measures to address the apparently discriminatory treatment of employees after they reach the age of 70.

Mr Williams (Attorney-General) —The answer to the honourable member's question is as follows:

(1) On 9 January 2003, the Government released an Information Paper setting out in detail its proposals for age discrimination legislation. The proposals include exemptions for legitimate age criteria in the provision of superannuation.

The superannuation exemptions proposed for the age discrimination legislation were developed in the course of extensive consultations with business and community organisations. There was broad agreement in consultations that issues arising from the age criteria in the Commonwealth superannuation regime were best addressed through the ongoing review and adaptation of the superannuation system, rather than through age discrimination legislation.

State and Territory anti-discrimination laws provide exemptions for superannuation, which allow for the inherently age-based nature of the existing superannuation system. Commonwealth anti-discrimination laws, such as the Sex Discrimination Act 1984 and the Disability Discrimination Act 1992, also provide exemptions for superannuation.

Age-related criteria are central to the Government's policies to promote better incomes in retirement through superannuation and the age pension, and to ensure that superannuation (which is concessionally taxed) is appropriately used for retirement purposes. Superannuation and related social security and taxation laws are finely balanced and constantly monitored. The Government continues to monitor the operation of the superannuation system to ensure that it meets the needs of an ageing population.

(2) The contribution and compulsory cashing rules for superannuation are designed to reduce the risk that concessionally taxed benefits are used for estate planning and not genuine retirement income purposes. Within this framework, however, the Government is committed to ensuring that the superannuation system reflects the needs of the ageing Australian population.

On 1 July 2002, the Government implemented its 2001 election commitment to raise the maximum age limit for personal superannuation contributions from age 70 to 75. All superannuation fund members aged between 65 and 75 can now make personal contributions to superannuation if they are working at least 10 hours per week.

As a consequence of this measure, the Government has also changed the compulsory cashing rules for those aged between 70 and 75. The benefits of these members must be compulsorily cashed if the member is working fewer than 10 hours per week. Previously, all members aged over 70 were required to work full-time (at least 30 hours per week) to avoid compulsory cashing. The 30-hour standard remains for people aged over 75.