Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Wong. I refer the minister to the latest data on Australia's financial accounts by the Australian Bureau of Statistics which shows that the total real value of financial assets held by Australian households remains lower than the peak reached in late 2007, just before the election of this Labor government. Given that the growth rate of the real value of household financial assets remains so sluggish, can the minister explain why this Labor government has increased taxes on the retirement savings of Australians by $7.8 billion in its first four budgets?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

In relation to the question about household assets, it is the case that the global financial crisis has affected asset values. That is hardly news. If the senator believes that somehow he could find a way of ensuring that asset values here in Australia and on equity markets would somehow escape the sort of crisis that we saw, and the ongoing uncertainty in the global economy which he is so fond of speaking of, then perhaps he should tell us. But, newsflash: there was a global financial crisis. It has had an effect on asset values across the world. It has had an effect here in Australia as well. It has affected superannuation returns, and also the government revenues for similar reasons. I think the senator knows enough about matters financial to understand that is the case.

On the second point about retirement savings, I would make this point. It is interesting to be lectured about the importance of superannuation by someone from a party which opposed it. The only reason working Australians have superannuation on a widespread basis, as opposed to it simply being the preserve of the wealthy, is that Labor governments and the trade union movement built the system of compulsory superannuation, of occupational superannuation. And who did we have to fight every step of the way to have that system built?

There are people on this side who can give you a bit of a history on it, Mr President, because it preceded me coming into parliament. There are people who are part of that fight to deliver superannuation. Let me tell you, Mr President, those on the other side are no friend of workers when it comes to occupational superannuation. They have always opposed it. They opposed its introduction and now they come in here and try and pretend they are a great friend of— (Time expired)

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister rule out any further new or increased taxes on Australian superannuation savings to help the government pay for its $120 billion budget black hole?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

We can rule out ever taxing the economy and the people as much as those opposite did when they were in government. We know that when we came to government tax to GDP ratio was 23.7 per cent. We do not come close to that in the projections over the forward estimates. If the good senator believes that somehow he is from a low-taxing government, he ought to look at the history books, because the statistics clearly show the highest taxing government was in fact the government of Mr Howard and Mr Costello. So I invite the senator. He says he is a fiscal conservative. He can make sure that he can guarantee when he next stands up that the coalition will comply with Peter Costello's Charter of Budget Honesty. Where are your tax hikes, Senator? (Time expired)

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given the minister has again refused to rule out further increases in taxes on people's retirement savings, what will be the impact of any additional tax increase on superannuation on top of the $7.8 billion in Labor Party super taxes so far on the level of voluntary superannuation savings across Australia?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

This is from the senator who opposes the low-income super contribution. They no longer oppose the increase in the Superannuation Guarantee Charge. This is a government that has been a very strong supporter of superannuation. We are seeking to lift the minimum level of superannuation contributions. Recall that Senator Cormann and others opposed the MRRT, which assists in funding that and, most importantly, the low-income superannuation contribution, which millions of Australians on low incomes will need in order to ensure they can increase their superannuation in order to ensure they can get a similar level of tax break to high-income earners, was opposed by those opposite. And 2.1 million of the people projected to receive that are women workers. These are the sorts of policies you oppose—additional superannuation for low-income Australians. (Time expired)