David Moncrieff (Hughes, Australian Labor Party) | Hansard source

Superannuation gives older Australians dignity and security in retirement. It's the recognition that Australians who have worked hard should be able to enter later life with a decent standard of living. This is, of course, the goal of all retirement income systems, but our Australian way has unique advantages. Savings mandates and concessional tax treatment are prudent mechanisms to encourage self-responsibility. It is Labor that built modern superannuation in this country. In 1991, Paul Keating introduced the legislation underpinning Australia's world-class superannuation system. Our superannuation system is one of the great success stories of the modern Australian economy. It has meant that successive Australian governments have spent less on retirement payments than other countries as a share of GDP, while supporting higher quality of life for older Australians.

Not only does superannuation provide a dignified retirement for individuals; it also benefits our economy. Over the decades since its introduction, contributions have deepened Australia's pool of investment capital over time, reducing the risk premium faced by Australian companies. It has improved our balance of payments when funds invest overseas, and spending out of income derived from superannuation is a large source of demand, powering around five per cent of GDP. Apart from their home, super is often the largest investment that an individual will make over their lifetime.

It was a Labor government that created superannuation, and this Labor government understands its critical importance for individuals and for the broader economy. That's why we've acted to strengthen superannuation, supporting a secure retirement for millions of Australians. The Albanese government is introducing mandatory enforceable service standards for all large APRA regulated superannuation funds. The focus of these standards will be on the areas families rely on during some of the most difficult times in their lives, including timely and compassionate handling of death benefit claims. The government is preparing to release draft legislation for public consultation this year.

We're making sure that super is paid at the same time as wages, closing loopholes that denied workers their entitlements and allowing workers to benefit from more frequent compounding. We have increased the superannuation guarantee to 12 per cent, a milestone for workers decades in the making, boosting retirement savings for millions of Australians. This government is also boosting the low-income superannuation tax offset to raise eligibility from July next year. This will give low-income workers a fairer tax concession on their super contributions and help deliver a more secure retirement for 1.3 million Australians, and we're improving the sustainability of concessional treatment for very large balances.

These reforms build on a strong record of action to strengthen and modernise Australia's superannuation system. This is work that the opposition neglected to do for years.

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