Senator CHRIS EVANS(3.15 p.m.) —I would like to speak to the same matter—the answer of the Assistant Treasurer (Senator Short) to the Deputy Leader of the Government in the Senate (Senator Sherry). It was interesting that, when responding as best he could, Senator Short said that Senator Sherry was broadly correct in his question. The question outlined the complete administrative nightmare that this initiative by the government will create. It details what the superannuation funds will have to do in liaison with the tax office for 15 million accounts in this country in order to target that small proportion of the community who are on incomes of over $70,000 a year and making contributions to superannuation.

Senator Short said that this administrative nightmare, as described by Senator Sherry, was broadly correct. What he could not do, of course, was explain how this new tax that the government has introduced, despite its election commitments to the contrary, would be implemented. This tax was introduced on 20 August this year. It is already in operation. We are not talking about government plans; we are talking about a tax that the government has introduced. Senator Short is unable to explain in any detail how it is currently being applied to taxpayers.

People who should have paid this tax on their recent contributions are currently retiring from the work force. What has Senator Short said about how that is going to be recouped, how it is going to be assessed? It is a complete mess. Senator Short cannot answer any questions that go to the detail of this measure.

He has refused to admit to the other major failing of this measure; that is, the administrative cost of this will be shared by all fund members, not just those earning over $70,000 per annum. The government is very keen to espouse the rhetoric of attacking the rich and protecting the poor. But the reality of this measure is that the superannuation funds will have to meet the huge cost of administering this program. In doing so, the cost will be spread among all the fund members. So all 15 million accounts will have to be assessed, and the costs associated with that process will be spread among all working men and women who are paying into superannuation. Senator Short either does not know that or refuses to admit it. It is a cost on all people contributing to superannuation.

One of my associates said to me that Senator Short should have been an ASIO spy rather than a minister, because as an ASIO spy he would be great if he was ever captured—he would never answer any questions. They could torture him, they could do what they liked, but Senator Short will never answer any questions. We had another example today where he refused to answer any questions. He either does not know the answer or simply refuses to be accountable to the Senate. The whole superannuation industry are bemoaning the fact that they invite him along to their conferences and lunches and he is unable to provide any detailed answers to their questions.

I reiterate that it is not the detail of a government proposal that may be implemented in the future that we seek; this is detail of a tax currently applicable to members of the Australian community. It is a tax that people should already be paying. Senator Short cannot give us the detail, he cannot provide any information.

He also cannot answer the question about indexation, about bracket creep. What happens when people who are currently on $60,000 or $65,000 a year get wage increases? There has been no mention about indexation. Is this just a revenue grab by the government? Will he protect people who are currently on those incomes as inflation starts to bite?

There is no detail on how the measure will impact on defined benefit funds. Some industry experts have suggested that this will be the death of defined benefit funds and that this will increasingly lead to accumulation accounts rather than pension accounts. I want to know whether the government endorses that strategy or not. There is a whole range of issues that need answers.

What about the privacy issue, Minister? I assume that you are going to allow superannuation funds to have access to tax file numbers and use them to make the system work. None of that detail has been released. You cannot answer any questions about it. You say that we are broadly correct when we raise the complete administrative mishmash and nightmare of this proposal, and you cannot give any detail about a tax that you have already implemented.

It certainly has the effect of reminding me of the last Premiers Conference and the tax measures that the Treasurer (Mr Costello) announced there. You just do not seem to be on top of the brief. You cannot provide any explanations. It is an outrage that the relevant minister cannot handle his own portfolio.