John Murphy (Reid, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Employment and Workplace Relations and Minister for Financial Services and Superannuation. Minister, how have the government's policies consistently supported giving Australians a stronger retirement? Minister, what other policies are there? Minister, what would be their impact?

Bill Shorten (Maribyrnong, Australian Labor Party, Minister for Financial Services and Superannuation) Share this | Link to this | Hansard source

I thank the member for Reid for his question and I know he is very interested in making sure that all Australians have a decent retirement income. I can report to him and members of the House and people listening that the Labor government has done much to improve the retirement savings of all Australians. We have increased the superannuation payment from nine to 12 per cent for 8½ million Australians. We have increased the concessional cap so people over 60 and over 50 can pay more money into their super to support them in retirement—half a million winners in that policy. We have abolished the age limits so people of any age can get superannuation. There are 50,000 of these people working who this year will get more superannuation. And I think, very significantly, Member for Reid, we have abolished the 15 per cent tax paid by 3½ million people who earn less than $37,000. I think by any reasonable measure these changes are not detrimental; they are positive. They are not adverse consequences; they are positive consequences.

But I am asked by the member for Reid what are the alternative policies and what are the other ideas around. I think when evaluating policies I might do what I do not often do. I will borrow from the filter used by the Leader of the Opposition. The Leader of the Opposition on occasions says things which attract attention. At the National Press Club he said on 31 January this year, 'There will be no unexpected changes that are detrimental to people with superannuation.' Not content with saying it once, he crowed again, on 28 March: 'There will be no unexpected adverse changes.' And on 6 April he repeated this promise. So you can imagine my surprise and disappointment when, in the reply to the budget, none other than the Leader of the Opposition said, 'Well, in fact, we will confirm our big new tax on 3½ million Australians. We, the coalition—the worst friend that the low paid have ever had in Australia—we will make every person who earns less than $37,000 pay not five per cent more tax and not 10 per cent more tax.' This mob opposite, if elected, want every poor worker, every poor employee and every part-time employee in Australia to pay 15 per cent. That is even bigger than the GST they have got in their back pocket.

And it gets worse than that. Those opposite want to freeze the increase in superannuation from 9¼ to 10 per cent. Under the opposition that will cost a 30-year-old earning average weekly full-time wages, man or woman, $20,000. So, Member for Reid, what I can tell you to say, when you are talking to your constituents about superannuation, is that we in government are increasing superannuation, we are increasing concessional caps, we have got rid of the discrimination, we are looking after the low paid. But be very careful of those opposite, Member for Reid, if they freeze the increase to super—because they do not like compulsory superannuation. There is no doubt in my mind that apart from the big new tax they will freeze super forever. (Time expired)