Kelly O'Dwyer (Higgins, Liberal Party) Share this | Hansard source

You would think from this motion and from listening to those opposite that Labor is the best friend of superannuation. Nothing could be further from the truth. Far from being the best friend of superannuation, Labor has wreaked havoc on our superannuation system from the moment of its inception until today.

Those on the other side have a very short memory. During Labor's time in office, Labor actually announced increased taxes on superannuation of almost, not $1 billion, not $2 billion, not $3 billion—no!—$9 billion, including cutting superannuation benefits for lower-income earners by more than $3.3 billion. Moreover, Labor, far from making it easy for people to make voluntary contributions to their superannuation and far from making it easier for people to be able to provide for themselves in their retirement, made it more difficult. It made it more difficult by lowering the thresholds before which people would then be penalised for making additional contributions into their own superannuation—into their own retirement.

We have been entirely consistent on superannuation. We said before the election what we were going to do and we are sticking to that promise. We said we would increase the superannuation guarantee from nine per cent to 12 per cent, and we are doing that. But in recognition of the very difficult fiscal environment that we found ourselves in as a result of Labor's recklessness with our budget and their continued recklessness in borrowing here and there—particularly from superannuants, with those $9 billion of taxes I just spoke about—the budget is in desperate need of repair and we need to make sure that we increase the guarantee in a more gradual way.

So, instead of increasing from nine per cent to 12 per cent in seven years—that is, from 2013-14 to 2019-20—the superannuation guarantee rate will increase from nine per cent to 12 per cent in 13 years, from 2013-14 to 2025-26. We are keeping our commitment and we are honouring our obligations.

But Labor, of course, do not acknowledge their role in the superannuation fiasco that they created. Labor have had about as many different positions as perhaps there are in the Kama Sutra. In fact, the Leader of the Opposition had quite a few flexible positions. I point out that he does sometimes get hit by the honesty stick and he sometimes does say what is truly in his heart. He pointed out on superannuation, when he was Minister for Financial Services and Superannuation in government, that 'increases in compulsory superannuation come out of people's wages.' That is Bill Shorten's quote; these are not my words—although I do agree with them—these are the words of Leader of the Opposition. Despite what those opposite have said, it does directly impact workers' wages to increase the superannuation guarantee.

Those opposite can be cavalier about the impact that this may have on individuals, their families and their retirement savings. We, on this side of the House, are not so cavalier. We believe it is important for people to save and be self-reliant and we will support them in that endeavour to do just that. That is why we have always made it easier for people to make voluntary contributions to their superannuation. We have always made it more tax effective for them to do so, to provide them with the right incentives to put money aside. It is clear that that has been having a significant impact, which is no thanks to Labor but thanks to the previous coalition government and thanks to the previous economic management of the previous coalition government. We take up that same mantle here in this parliament, in this government, and we will continue our commitment to superannuation for the welfare of all Australians.

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