Lucy Wicks (Robertson, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer outline to the House how the government is ensuring the economic security of all Australians, particularly older Australians in my electorate of Robertson, who have saved for their retirement? Is the Treasurer aware of any higher taxing alternatives?

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Robertson for her question. I know that she supports a strong economy, because a strong economy provides the services and the support for our senior Australians, including in her electorate of Robertson.

The Australian economy's growing strongly—3.4 per cent growth through the year, its fastest rate since the height of the mining boom, with unemployment falling to five per cent, its lowest rate since 2012. Wages are starting to rise, as the Reserve Bank of Australia predicted, with their biggest jump in three years. Australia's AAA credit rating was reaffirmed by the leading rating agencies, and the budget is on track to come back to balance. That doesn't happen by accident. The Australian economy doesn't operate by autopilot. It has been the difficult, hard decisions that the Liberal and National parties in government have taken. And this is enabling us to support senior Australians through the pension work bonus, which allows them to keep the pension but also to earn up to $300 extra a fortnight, and by allowing senior Australians to downsize their home and put additional money into super. That is what we are doing to support senior Australians.

But those opposite have a different plan for retirees and senior Australians. They have a plan to increase their taxes—a new retirees tax, a $45 billion tax grab from Australian retirees. As a result of Labor's policy, 900,000 individuals will be worse off, and 200,000 self-managed super funds and the holders of those will be worse off as a result of Labor's policy. On average, if you've got a self-managed super fund, you'll be $12,000 worse off under Labor's policy. If you're an individual with these franking credits, you'll be $2,200 a year worse off as result of Labor's policy. What's more, 84 per cent of those people who are currently getting the benefit of those franked dividends have a taxable income under $37,000—under $37,000! There are 300,000 of those people in Labor-held electorates. What about the 8,000 in the seat of Canberra, the 7,900 in Jagajaga, the 7,600 in Melbourne Ports and the 7,400 in Cunningham? They're all going to be worse off as a result of Labor's policy.

Simon Crean, who was the then shadow Treasury spokesman for Labor, said of the government's changes, back in 2000:

… it improves the current taxation situation faced by low income investors …

These people have now been ignored by the Labor Party and left out of the benefits that they should enjoy.