David Littleproud (Maranoa, National Party, Shadow Minister for Agriculture) Share this | Link to this | Hansard source

My question is to the Assistant Treasurer. Can the Assistant Treasurer clarify how Labor's super tax on unrealised capital gains would operate for a farmer who has their farm held in a self-managed superannuation fund, when they've had a failed season with no income?

Daniel Mulino (Fraser, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

I thank the Leader of the National Party for the question. I would like to firstly state that it is important, I think, to go back to the purpose of superannuation when we consider this important reform. Superannuation was a very important reform brought in in the early 1990s. It was for the purpose of providing dignity and certainty in retirement for people across the Australian population. That is an extremely important piece of context, because this reform that we are talking about is very important in improving the sustainability and the fairness of the superannuation system.

I would like to add that this reform will apply only to around half a per cent of member balances. It is going to apply only to balances of $3 million or more—balances that are well above what is needed for people to achieve dignity and certainty in retirement. I also want to stress that this reform will still provide concessional tax treatment for that part of the balances over $3 million.

Milton Dick (Speaker) Share this | Link to this | Hansard source

The Leader of the Nationals on a point of order.

David Littleproud (Maranoa, National Party, Shadow Minister for Agriculture) Share this | Link to this | Hansard source

It is a point of order on relevance. There's been a preamble, but the question was very specific, about how a farmer would pay for this tax—very specific. We've been very fair, but I think we need to get to the crux of the answer.

Milton Dick (Speaker) Share this | Link to this | Hansard source

Yes, and as I indicated when the Leader of Opposition took her point of order, the question was specific. And we're not getting into a situation where, when a minister or the Prime Minister, whoever's directed the question, is on the policy topic and is explaining to the House about, in this case, the tax, we get up every time and disrupt question time. And this is a warning to everyone. Otherwise, I won't take the points of order.

I can give you loads of examples of where this has happened before. But we're starting on the right foot. Just because a minister isn't giving a fact, a figure, a yes or a no—as I was clear in the last parliament—we're not simply going to get people up to say, on points of relevance, that he's not answering the question, or she's not answering the question. If you need further information, go to page 567 of Practice, which clearly articulates the area of relevance. The minister is talking about the tax. He's explaining to the House the details of the tax. I can appreciate that it's not the answer that you want, but I can't direct him to answer it in a way that you would like. I can only direct him to make it relevant. If he strays into other policy, he'll be called to order.

Daniel Mulino (Fraser, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

So, can I just reiterate that this is a very modest measure which is well targeted at supporting the fairness and sustainability of the superannuation sector. Can I also say, in relation to the specific question that was raised, that it is important that all superannuation funds are designed so as to take account of diversification requirements and liquidity requirements. That is an obligation under the current law on all superannuation funds. That is something that is very important to bear in mind. It is important also to bear in mind that, if an SMSF has a farm or a business within the fund, it should be receiving commercial, arm's-length payments from that business or from that farm.

Can I conclude by saying that this is a very modest measure. This measure has been on the public books for well over two years. It was consulted on very broadly, and we took this measure to the last election. I certainly won't be taking lectures on the fairness of the superannuation system from a party that has opposed every single increase in the superannuation guarantee over the past 25 years.

Milton Dick (Speaker) Share this | Link to this | Hansard source

The member for Cunningham will cease interjecting.

And the member for Gippsland can give it a rest, too.