Senator SHERRY (2:28 PM) —My question is to Senator Coonan, the Minister for Revenue and Assistant Treasurer. Will the minister confirm that only about 500 children's superannuation accounts have been opened some 14 months after the children's superannuation accounts scheme commenced operation? Didn't the Prime Minister boast, when launching this trailblazing centrepiece of Liberal Party superannuation policy prior to the last election, that there would be 470,000 such accounts over four years? Why have children's superannuation accounts been such a flop?

Senator COONAN (Minister for Revenue and Assistant Treasurer) —As Senator Sherry would know, there are many small to medium enterprises and many funds in which you can take out a child account. It is not possible to either agree or disagree with his proposition about whether the number that have been opened is currently 500 or 5,000. This is not something that should be just estimated with figures plucked out of the air. It is almost impossible to be definitive about how many child accounts there are.

The important point about this is that child accounts are basically available. They are not compulsory; they are optional. They provide a very valuable opportunity for those who wish to take out a child account to do so. This government has introduced many ways to save for retirement. Obviously, one of those is the ability to save for a child in a child account. Another way is for those who have a baby and get the baby bonus to be able to contribute it to superannuation. Another very effective way to save is through the co-contribution for low-income earners. This government does not prescribe how people should save. Instead, it enhances and introduces policies that give people some choice about how they are going to save. A child account is simply a valuable opportunity in a suite of measures designed to provide for children.

It is pretty obvious, though, that because Senator Sherry has no policy and has not had one for 7½ years—and probably will not have one for the next 7½ years—all he can think of asking about is child accounts. That is instead of asking next year when the policy has been running and has had an opportunity to succeed.

Senator SHERRY —Mr President, I ask a supplementary question. The government did predict that 470,000 accounts would be opened, and to date 500 have been opened. The minister is not correct: because of the tax treatment of children's accounts they have to be reported to the tax office, so she should know the number. Isn't it correct that, at the current rate of progress, it will take 910 years for the Prime Minister's election promise to be implemented?

Senator COONAN (Minister for Revenue and Assistant Treasurer) —I do not know whether the Labor Party will still be in opposition then, but I am sure they will still be lying on the track and objecting to sensible reforms that enable people to save in a variety of ways. The child accounts are one of the voluntary ways in which people can save. I think this simply indicates the sour grapes of the Labor Party, who simply hate the fact that this government cares about working Australians, cares about their retirement savings and is prepared to negotiate and make sensible accommodations. The Labor Party hate it because they have made themselves irrelevant.