Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

We had an indication this week from the Leader of the Opposition, ‘the member for Manly’, the Hon. Tony Abbott, that he was going to betray his Jesuit roots when he indicated that he was going to block our attempts to change the superannuation guarantee increase from nine per cent to 12 per cent. In a religious upbringing that talked about fairness for all and giving people opportunities, this would be one of the greatest sins that the ‘member for Manly’ could commit, if he were in fact to cut off our chances to increase the SGC.

As a member of the Howard government, Mr Abbott neglected infrastructure for nearly 12 years. He has shown time and time again that he does not take economics seriously and, in that, I could perhaps understand why he fundamentally does not get it about superannuation and how important it is for ordinary Australians. Not those people on a defined benefit scheme or a pension scheme like members elected to the federal parliament before 2004—

Mark Coulton (Parkes, National Party, Shadow Parliamentary Secretary for Regional Development and Emerging Trade Markets) Share this | Link to this | Hansard source

Mr Coulton interjecting

Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

I take the interjection from the member for Parkes. It is not that sort of thing, but for ordinary Australians superannuation is incredibly important. I am talking about ordinary Australians, not those on federal MPs wages. I did note that the ‘member for Manly’ complained about that. When the world was tightening its belt, he said that we too should tighten our belts. It would be a bit hypocritical for politicians to talk about belt tightening if we did not actually do something ourselves. Mr Abbott was saying: ‘Oh no, we shouldn’t do that. MPs are just like ordinary Australians.’ The reality is that our wages are much higher than most Australians.

Superannuation is incredibly important. I know the battles that went on way back in the nineties with the Hawke government and with Paul Keating as Treasurer. When we brought in this superannuation there was the trade-off for the three per cent wage increase. But since then the superannuation industry has taken off and the latest figures I have, from June 2007, show that Australia’s superannuation assets back in June 2007 were $1,153.3 billion—that is, about $1 trillion or 119 per cent of the GDP as it was back in June 2007. Obviously it would have increased since then.

The Labor government gets superannuation. We understand superannuation. We understand how important it is. So, for the coalition to stand against this government’s reforms to increase the superannuation guarantee and the incentives for lower income earners and those nearing retirement age would be reprehensible. Maybe those opposite just do not get it? Maybe they just do not understand compulsory superannuation? Because it would be Australians on lower incomes who would miss out, the people who have been given a great opportunity to save and invest for their own retirement. So that means the coalition is now the greatest risk to Australia’s national superannuation savings.

I will give you a couple of examples. If you are an 18-year-old—I know that is not that long ago for you, Mr Speaker—who entered the workforce today on average earnings, you would be $200,000 worse off when you retired. So, young people, the people voting for the first time at the next election, cannot risk their future savings on the coalition—on the Leader of the Opposition. Or, if you are an employee aged 30 today—which is closer to the age of the member for Rankin—on the average full-time weekly earnings, you would retire with $108,000 less in superannuation. If you are a female aged 30 today on average weekly earnings with an interrupted work pattern, you would retire with nearly $80,000 less in your superannuation kit. Young families cannot afford to risk their future savings on the coalition.

If the coalition blocks this reform package, it will mean that 3.5 million Australians on lower incomes will continue to receive little or no concession on their compulsory superannuation contributions. If they take this reckless approach and block these reforms, it will mean 8.4 million Australians will not receive an increase in their retirement incomes. The 275,000 individuals who would benefit from a higher concessional contributions cap will not be able to make additional savings for their retirement when they are most able. And the 33,000 employees aged 70 to 74 will continue to miss out on superannuation guarantee contributions while they are working. I will not say who in the House would be closer to those ages, Mr Speaker. (Time expired)

Question agreed to.