Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Hansard source

I thank Senator Parry for his question and for his longstanding interest in superannuation policy. Senator Parry, together with everyone in this chamber no doubt, is aware that Australia is currently enjoying one of the longest sustained periods of economic growth in its history. Due to the Howard government’s management of the Australian economy, unemployment is at a 33-year low, real wages are growing and over two million new jobs have been created since 1996. We are now building upon Australia’s prosperity to lock in the gains for future generations. A key feature of locking in future prosperity is the superannuation reforms that this government have introduced to assist people to save for their retirement. The changes to superannuation will ensure that Australia maintains one of the most advanced and well-managed retirement income systems in the world. These changes in superannuation would simply not have been possible without the strong economic management of this government over the past 12 years. The reforms also boost incentives to work and to save. For example, by making superannuation payments tax-free for those aged 60 and over, a person’s assessable income will be lower—reducing the tax paid on their other income, including their employment income. Importantly the reduction in superannuation taxation increases the reward for making voluntary payments to superannuation. Under the superannuation co-contribution scheme, the government contribute $1.50 for every $1 of after-tax superannuation contributions made by employees earning up to $28,000 to a maximum co-contribution of $1,500 per year.