Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Assistant Treasurer and Minister for Financial Services and Superannuation, Senator Sherry. Can the minister please outline to the Senate this afternoon how Australians receive better retirement incomes through the government's tax reforms funded by the minerals resource rent tax? How will the government use the proceeds of the minerals resource rent tax to deliver the benefits of the mining boom to all Australians?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Thank you, Senator Pratt. I touched yesterday on some of the tax cuts and the benefits that will flow from the $11 billion mining tax that was tabled in the House of Representatives yesterday. Of course, we know it is a mining tax that the mining companies want to pay and that those opposite, the Liberal and National parties, want to give back to the mining sector.

Let me outline in greater detail the benefits that flow from the mining tax in respect of superannuation. There are quite a number of benefits. Firstly, we propose to increase the superannuation guarantee from nine to 12 per cent. Secondly, we intend to cut the contributions tax paid by over 3½ million low-income-earning Australians. Currently, many low- and middle-income Australians pay a 15 per cent contributions—

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Sherry, just resume your seat for a moment. It might be easier. The time to debate this is after question time, which is not too far off. I can give you that advice. Senator Sherry, continue.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Thank you—and we look forward to that debate. Currently, 3½ million Australians pay a contributions tax of 15 per cent on their superannuation, which is either equal to or higher than their marginal income tax. Interestingly, of the 3½ million Australians who pay this contributions tax, just over two million are women. It is highly regressive for over two million low-income women to be paying the 15 per cent contributions tax. We propose to effectively scrap that tax.

We intend to implement further reforms. We intend to allow those Australians who make a decision over the age of 70 to remain in the workforce to continue receiving their superannuation guarantee. That is another important reform. Our reforms in total will deliver some $830 million in additional benefits to Australian workers' superannuation. To give a specific example— (Time expired)

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I am pleased to ask a supplementary question. Can the minister please outline to the Senate the industry reaction to the government's plans to boost Australians' retirement incomes and ensure a better deal for Australia's superannuation fund members?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

I was about to say that a 30-year-old Australian on average earnings will retire on nearly $108,000 more in superannuation savings as a result of the tax cuts to superannuation that flow from the mining tax, which we know the Liberal and National parties do not support. When and if they ever get into government and they repeal the mining tax, they are going to have to increase taxes on workers' superannuation to pay for it. They stand for increased taxes on superannuation.

But there is one smart Liberal.

Government senators: No!

There is! There is one smart Liberal: Mr John Brogden, the Chief Executive Officer of the Financial Services Council. He is one smart Liberal because yesterday he came out and urged the Liberal opposition to support the superannuation— (Time expired)

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I would like to know if the minister is aware of any alternative policies to the Gillard government's historic tax and superannuation reforms.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

We know that 20 years ago—20 long years ago—the Liberal and National parties opposed compulsory superannuation. They said no. You would think, after 20 years, they would have learnt something, but what is their approach—Senator Cormann has outlined it—to increasing superannuation from nine to 12 per cent? No. Yet again, it is no. What is their approach to cutting taxes on over 3½ million Australians' superannuation? No, yet again. What is their approach to an extra $108,000 for a worker aged 30 on average earnings? No. They do not want to have another $108,000 going to the superannuation savings of Australians. And what is their approach to the $11 billion mining tax that the mining industry wants to pay? No. That is all they stand for: no, no, no, go away; come back— (Time expired)

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.