Download Fragment

Wednesday, 6 July 2011
Page: 4171

Superannuation

Senator THISTLETHWAITE (New South Wales) (14:37): My question is to the minister representing the Minister for Superannuation and Corporate Law, Senator Sherry. Can the minister outline to the Senate the outstanding achievements of the Gillard government to improve the superannuation savings of working Australians? How will the Gillard Labor government's farsighted policies in superannuation help families save for a comfortable retirement?

Senator SHERRY (Tasmania—Minister Assisting on Deregulation and Public Sector Superannuation, Minister for Small Business and Minister Assisting the Minister for Tourism) (14:37): Thank you to Senator Thistlethwaite for his first question. It is good to see another superannuation aficionado entering the Senate and asking a question about a very important and major economic and social reform that this government has initiated and has announced major improvements to.

The Gillard Labor government is to make major reforms to Australia's superannuation system, which will benefit millions of Australians. Successive Labor governments have long argued that the current super­annuation guarantee of nine per cent, introduced almost 20 years ago by a Labor government and opposed by those opposite—millions of Australians would have no superannuation at all if they had taken the advice of the Liberal Party—needs reform and we intend to increase the superannuation guarantee from nine per cent to 12 per cent over seven years. We intend to add to the retirement income savings for millions of Australians.

What should be remembered is this is also on top of the increase in the age pension. Again, what did those opposite do about increasing the age pension when they are in government? Nothing. This Labor government has increased the age pension. We introduced compulsory superannuation to nine per cent and we intend to take it further to 12 per cent. This will add to the retirement income savings of some 8.4 million people. The Liberal Party either did nothing, or opposed it. Like everything else, all they have is a negative position: do nothing or oppose. That is their announced policy in respect of this important change to superannuation. (Time expired)

Senator THISTLETHWAITE (New South Wales) (14:39): Mr President, I ask a supplementary question. Can the minister advise the Senate how the Gillard govern­ment's achievements in superannuation are providing Australian families better funded services and more security at lower cost?

Senator SHERRY (Tasmania—Minister Assisting on Deregulation and Public Sector Superannuation, Minister for Small Business and Minister Assisting the Minister for Tourism) (14:40): Thank you. We intend to do more. We intend to cut the contributions tax which is currently paid by about 3.5 million low-income earners on their super­annuation. We intend to cut or do away with the contributions tax. What is the Liberal Party position on cutting or doing away with the contributions tax? They oppose it. They do not support a tax reduction on super­annuation for 3.5 million Australians. So on the retirement income reforms, the increase in the age pension, the increase in the super guarantee and the cut in tax for low-income earners on their superannuation, the Liberal Party either did nothing or they opposed it. This is their position—no improvement in the retirement incomes of over eight million Australians—because they have no retire­ment income policy. Their only position is: do nothing or oppose. (Time expired)

Senator THISTLETHWAITE (New South Wales) (14:41): Mr President, I ask a further supplementary question. Is the minister aware of any obstacles or risk to the Gillard government's historic achievements in, and future reforms of, the superannuation system?

Senator SHERRY (Tasmania—Minister Assisting on Deregulation and Public Sector Superannuation, Minister for Small Business and Minister Assisting the Minister for Tourism) (14:41): Not only is it important social policy improving the retirement incomes of more than eight million Australians, it is an important economic impact. We currently have $1.36 trillion in savings. Obviously the pool of super­annuation savings is very important to the future of this economy. It is an important savings pool that is invested back in Australia, predominantly; it helps grow the economy and it helps add to jobs. So not only was the Liberal Party originally opposed to doing anything on super­annuation almost 20 years ago, it is now opposed to improving superannuation savings which in turn add to the pool of capital savings in this country, which in turn add to our economic strength. That is the Liberal Party's position: oppose an improvement in retirement incomes and oppose an important economic reform which will strengthen this economy and add to jobs. That is all they know: do nothing, oppose and be negative. (Time expired)