Jane Hume (Victoria, Liberal Party, Assistant Minister for Superannuation, Financial Services and Financial Technology) | Hansard source

Forgive me, Senator Gallacher, I thought you said 13½ per cent, not 3½ per cent, so I didn't mean to correct you there. I re-emphasise that we're not denying anybody insurance. Anybody who wants insurance can get insurance. Anybody who thinks they need insurance can get insurance through their superannuation fund. Of that 3½ per cent, the trustees will approach them and say, 'Do you want insurance?' It is opt-in; it's not opt-out. That's all we're trying to do here. In fact, the average premium at the moment is not $80 a year—it's $340. For people on balances that are low or for people under 25, that $340 a year, average, insurance premium is enough to eat away at the fund growth, so it can never get above that critical mass. What we're trying to do is help them get above that critical mass so that compound interest can take effect, and then insurance premiums can be applied appropriately without it eroding their retirement savings.