Glenn Lazarus (Queensland, Palmer United Party) Share this | Hansard source

I rise today to let all Australians know that the Palmer United Party supports the abolition of the mining tax, but we do not and cannot support the removal of three key low-income support measures contained within the bill that the government is seeking to abolish simply to save money. Therefore, the Palmer United Party will only support the abolition of the mining tax on the condition that the three key low-income support measures are retained, as these allow for the provision of vital support to Australian low-income earners. These are the low-income superannuation contribution, the income support bonus and the schoolkids bonus.

While my Palmer United colleagues and I support the repeal of the minerals resource rent tax—commonly known as the mining tax—because it is an unjust, anticompetitive and malicious tax which only serves to hurt the Australian resource sector and, more broadly, the economy and social wellbeing of our country, we will not allow the removal of vital support from many Australians who most need our help. Therefore, as leader of the Palmer United Senate team, I propose and have circulated an amendment which will ensure the retention of the low-income super contribution. My Palmer United Senate colleague and deputy leader of the Palmer United Senate team, Senator Lambie, has proposed and circulated amendments to ensure the retention of the schoolkids bonus and income support bonus.

The Palmer United Party is committed to reuniting the nation and supporting all Australians to live a full, secure, productive and meaningful life. The Palmer United Party is determined to ensure all Australians have the opportunity to retire without fear of poverty and neglect. The low-income super contribution is a prudent, meaningful and well-thought-out initiative which helps the most needy in our community to plan and to save for their future. Low-income earners have their superannuation taxed at 15 per cent, even though they do not earn enough to be taxed on their income. This makes it very difficult for low-income earners to save for retirement.

The low-income super contribution helps low-income earners to save for their retirement by providing a payment of up to $500 a year which is paid directly into their super account. The low-income super contribution initiative recognises that we must help the most vulnerable in our community to live a decent, fulfilling and rewarding life in retirement by helping them to save for their retirement. When the low-income super contribution was introduced, it was estimated that the program would benefit some 3.6 million Australians on low and modest incomes, including 2.1 million women.

While a maximum super contribution of $500 does not sound like much, it can add substantially to the final super balance accrued at the time of retirement. For example, according to the Australia Institute, a low-income earner of 25 years of age who receives $500 per year and retires at the age of 65 will accrue additional super of $37,700 on retirement due to the low-income super contribution. If the low-income super contribution is repealed the eventual super payout will be $37,700 less. If the low-income super contribution is repealed, women across Australia will be negatively impacted and will lose vital financial security for their future. The Palmer United Party cannot and will not support such reckless, callous, ruthless and thoughtless harm being imposed on Australian women and low-income earners.

The government should be introducing and maintaining measures to enhance the involvement and contribution of women to Australia's economy, not creating barriers to their participation and financial wellbeing. In particular, the government should be supporting those who are working hard to support themselves and their families without relying solely on the financial assistance of others, not penalising them. Every Australian deserves to retire with dignity and to enjoy life after many years of hard work. Retaining the low-income super contribution will enable many low-income earners who are desperately struggling to pay even the most basic of bills day to day like food, power and petrol, let alone saving for retirement, to look forward to retirement and a future which offers hope, security, happiness and independence without financial    reliance on others. I am at a loss to understand why the government would want to remove a program which provides such vital support to Australians most in need—honest, decent Australians who work hard, raise families, endure challenges and hardships, volunteer their time, support their local community and care for others.

If the low-income super contribution is removed, in my home state of Queensland alone some 22,947 people in the federal seat of Wide Bay will be affected. That is 44.4 per cent of working people in this part of Queensland, which takes in iconic towns such as Gympie and Maryborough, who will lose up to $500 in superannuation each year. A further 27,568 people in the federal seat of Maranoa will be affected. That is nearly 43 per cent of working employees in this part of Queensland who will lose up to $500 in superannuation each year. Hardworking Queenslanders in this area, which includes iconic towns such as Kingaroy, Longreach, Roma, Warwick and Charleville, will be needlessly affected. And it gets worse. If the low-income super contribution is removed, in the federal seat of Hinkler the number of people affected will be 19,800. That is 42.3 per cent of the working population in this part of Queensland, which includes iconic towns such as Bundaberg, Hervey Bay and Childers, who will be hurt.

Regional and rural Australia is already on its knees. Much of my state of Queensland consists of regional and rural areas, and people in these areas are doing it tough. They are hurting. Suicides are a regular occurrence among our farmers. I find it extraordinary that the government would want to remove the low-income super contribution, given the financial harm this will cause to regional and rural Australia. The Palmer United Party will not allow the government to hurt regional and rural Australia by ceasing the low-income super contribution. The Palmer United Party cares about regional and rural Australia.

We as representatives of the Australian people and I as a senator for Queensland have an obligation to take care of our people, to treat our citizens with respect, decency and kindness and, above all, to help those who need assistance to help themselves. The low-income super contribution must continue. I cannot allow so many Australians, so many Queenslanders, to be hurt by this government's ruthless, unnecessary and unAustralian attempt to penny pinch and remove the low-income super contribution. Australia needs real leadership, and the amendments we will propose provide us with the opportunity to deliver on this need. The low-income super contribution is an investment in our people's future and it must be retained, so I commend the essential amendments to the Senate.