Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Hansard source

I thank the honourable member for Moncrieff for his question and acknowledge the work that he does on the finance and treasury committee. On 9 May in this year’s budget, the government announced the biggest reform to superannuation in decades. Members will know that the government’s reform plan involves making superannuation payments out of taxed funds tax free when a person turns 60—tax free for lump sums, tax free for pensions. No longer will it be necessary to differentiate between pre-1983 and post-1983 and pre-1994 and post-1994 capital gains tax, exempt or otherwise. There will be one simple rule: when those who have their superannuation in a taxed fund turn 60, they will be able to take benefits tax free. In addition to that, the government plan involves halving the age pension’s assets test taper, extending the co-contribution to the self-employed and encouraging people to remain in the workforce by giving them the option to take superannuation tax free whilst they remain perhaps in part-time employment or otherwise after the age of 60.

We are still to hear from the Labor Party what its position on this legislation is. It has not announced a position, notwithstanding that this was announced in the May budget. Susan Ryan, writing in the Australian on 12 May 2006, had this to say:

“These are the most important changes to superannuation ever,” Peter Costello boasts. They’re even more important, he claims, than the 1992 introduction by the Keating government of compulsory super. The Treasurer can often overstate his case, but this time he’s right.

I do not agree with everything she wrote.

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