Ross Vasta (Bonner, Liberal Party) Share this | Link to this | Hansard source

My question is addressed to the Minister for Revenue and Assistant Treasurer. Would the minister outline to the House how the government is encouraging low- and middle-income earners to build their retirement savings? Is he aware of any alternative policies? What is the government’s response?

Peter Dutton (Dickson, Liberal Party, Minister for Revenue and Assistant Treasurer) Share this | Link to this | Hansard source

That was a hard act to follow from the Treasurer. I say to the member for Bonner: thank you very much for the question. He has a very important role in this government in making sure that we continue to provide assistance to low-income people. That is one of the proud policies of this government. We have delivered not just to people on middle and low incomes but particularly to people in small business as well. In the honourable member’s electorate, in the last three years 20,675 co-contribution payments worth a total of $21 million have been made to his low-income constituents.

This is part of a $3 billion strategy to help people on low incomes get more money in their superannuation accounts. The problem is that not enough Australians know about the way in which we are helping people through their superannuation. The way in which the scheme works is that for people on low incomes we will, as a government, on behalf of taxpayers, contribute up to $1.50 per dollar that low-income people put into their superannuation funds. That makes a world of difference for people in their retirements. It makes a world of difference because of the effect of compounding, and there is a stark contrast in the way in which this government continues to provide assistance to low- and middle-income earners as opposed to that which sits today as an alternative.

Australian people and the members of the public in the gallery today would ask themselves: why, in this question time, has the Australian Labor Party not taken the opportunity to ask one question about policy that this government has put in place to help Australian families in this country? The reason is very clear. At the last election, the Labor Party opposed lock, stock and barrel this government’s co-contribution scheme. They opposed it because they had no understanding of how to help Australian families. The second point is that they oppose policy and they oppose good policy discussion in this country because they, as an alternative government, have in mind a policy which will see small business put people out of work.

This week they have secretly put something on their website; there have been no press releases, no grand statements and no public statements by any of their shadow ministers. It has just appeared on their website. There has been no grand speech by the shadow Treasurer or the shadow Assistant Treasurer. It has just mysteriously appeared on their website. It says to Australian small business that they want to increase the contribution from nine per cent to 15 per cent and they want small businesses in this country to pay for at least a good part of it. They have not told Australian small businesses this, but it has appeared magically on their website and they are going to say to Australian small businesses, ‘Not only are we going to slug you with a wind-back of the Work Choices legislation, not only are we going to have small businesses run by union thugs in this country, but we are going to increase the nine per cent contribution possibly to 11 or 13 or 15 per cent,’ which will result in people in this country being put off by small business.

The third point that needs to be made—and it needs to be made very clearly to Australian small business—is that the Labor Party, if they are elected at the next election, intend to have as part of their policy platform an obligation on businesses in this country to have a union backed fund as their default superannuation fund. That is what also mysteriously appeared on their website this week. Put into awards, they want the default position for employee superannuation in this country to be an industry fund, most of which are dominated by unions. If people in small business have any doubt about the stranglehold that the union movement has around the throat of the Leader of the Opposition, they need look no further than superannuation.

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

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