Natasha Griggs (Solomon, Country Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister please outline to the House the coalition government's response to the Murray financial system inquiry? And will the Prime Minister also explain how these reforms will strengthen and secure the banking system, protect consumers and provide greater choice to Australians planning for their retirement?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the honourable member for her question, and I want to thank at the outset—

Mr Champion interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Wakefield has been warned. You will cease interjecting immediately.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

the great work done by David Murray in heading this panel, and the other members of the panel. This has been a very important piece of work, commissioned by the government, commissioned by the then Treasurer, Mr Hockey. It is building on the work of previous inquiries, such as the Wallis inquiry, whose recommendations were implemented by the government of John Howard, with Peter Costello as Treasurer. Over many years—generations, in fact—the coalition, the Liberal and National Party governments, have been constantly improving the prudential management, the security, the choice and indeed the flexibility of our financial system. Our financial services system is absolutely fundamental to our prosperity and the prosperity of our children and grandchildren in the future.

The initiatives that have been announced today and this response will ensure that Australians can have full confidence in our financial system and greater choice and control over how they spend and save their own money. All Australians will appreciate the importance of one of the key measures announced today to ensure that surcharges imposed on customers by business for use of cards, especially credit cards, are limited to no more than the actual cost to the business itself of that card being used. This is a measure to ensure transparency and to ensure that consumers get a fair deal.

These common-sense reforms that have been part of our parties' tradition have delivered one of the world's strongest and most effectively regulated financial systems. We should not forget that one of the reasons Australia did not fare as badly during the global financial crisis as other countries was because of the strong financial services system that we had in place.

Ms Plibersek interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Sydney!

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

Our banks were and are among the best in the world, and it is a consequence of good management.

Mr Brendan O'Connor interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Gorton will cease interjecting.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

It is not an accident. It is a consequence of good management. The domestic assets of our banking institutions alone have increased from $560 billion to $3.5 trillion. The superannuation system, from the times of the Howard government, has increased from $300 billion of assets to around $2 trillion today. This is a vitally important industry. The work of the Murray review has been critical in ensuring its continued health. And the response the government has made in accepting almost all of the recommendations is going to ensure that we remain with the best financial services system in the world. (Time expired)