Claire Chandler (Tasmania, Liberal Party) Share this | Link to this | Hansard source

It is an honour to ask this question of the Minister for Superannuation, Financial Services and the Digital Economy, Senator Hume. Can the minister inform the Senate why the Morrison government is modernising and improving—

Opposition Senators:

Opposition senators interjecting—

Senator Ayres interjecting—

Scott Ryan (President) Share this | Link to this | Hansard source

Order on my left! Senator Ayres, you're not being helpful. It is only our first day back. If we waste time, we're costing the opposition time.

Opposition senators interjecting—

We are going to continue to waste time that is traditionally considered to be of value to non-government parties if I don't have silence for a colleague to ask a question. It is our first day back; can we try a little harder? Senator Chandler.

Claire Chandler (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Can the minister inform the Senate why the Morrison government is modernising and improving—

Opposition senators interjecting—

Scott Ryan (President) Share this | Link to this | Hansard source

Order! I'm happy to do this until three o'clock. It is not particularly of concern to me how I spend the next 23 minutes.

Senator Wong interjecting—

Minister Birmingham, on a point of order?

Simon Birmingham (SA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Mr President, since you called for order, Senator Wong hasn't ceased speaking. The opposition have had their bit of fun. All interjections are disorderly, as you rightly pointed out. You grant a degree of tolerance, but I think the tolerance is being stretched now.

Scott Ryan (President) Share this | Link to this | Hansard source

I don't particularly want to commence the first day back by threatening to name anyone, but this is question time, not a session of Gregorian chanting. The opposition will have time to make its point at three o'clock when we take note of answers, so I would ask that we hear Senator Chandler and her question in silence.

Claire Chandler (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Third time lucky. Can the minister inform the Senate why the Morrison government is modernising and improving Australia's superannuation system?

Jane Hume (Victoria, Liberal Party, Minister for Superannuation, Financial Services and the Digital Economy) Share this | Link to this | Hansard source

I thank Senator Chandler for her question and her ongoing commitment to a more efficient and more cost effective superannuation system in Australia. The Australian superannuation system manages around $3 trillion in retirement savings on behalf of around 16 million Australians. While the system has grown significantly, it does need to adapt to better meet the needs of Australians.

The Your Future, Your Super package, announced in the 2020-21 budget, is the Morrison government's next step in modernising and improving the Australian superannuation system to ensure that it is working harder for all Australians. This is part of the government's plan to make the Australian super system more competitive, more transparent, more efficient and better governed and ensure that Australians can reap the full benefits of compulsory superannuation.

The Treasury forecasts the Your Future, Your Super package will save Australians around $17.9 billion over the next decade in reduced fees and better performance of the super system. Young Australians entering the workforce could be up to $98,000 better off at retirement because of these reforms. At present, Australian households pay around $30 billion a year in superannuation fees, and that excludes insurance premiums. That's more than the $27 billion that households spend on energy bills and the $12 billion they pay on water bills. This government's measures to date have gone a long way to combating the inefficiencies and anomalies, but more must still be done. The question must be asked: will Labor again oppose the legislation that will make Australia's system more competitive, transparent and efficient?

Scott Ryan (President) Share this | Link to this | Hansard source

Senate Chandler, a supplementary question?

Claire Chandler (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Can the minister advise the Senate—

Opposition Senators:

Opposition senators interjecting—

Scott Ryan (President) Share this | Link to this | Hansard source

Order! I really don't want to feel like I'm in a classroom. I know there are people in here with a lot more experience than I have in that—as teachers I was referring to. We don't need chanting, quite frankly. The point has been made—

Senator Keneally interjecting—

It's not particularly amplifying, Senator Keneally, because I can't hear Senator Chandler clearly, and I would like to. Senator Chandler.

Claire Chandler (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Thank you, Mr President. Can the minister advise the Senate how Australians will benefit from an improved superannuation system?

Jane Hume (Victoria, Liberal Party, Minister for Superannuation, Financial Services and the Digital Economy) Share this | Link to this | Hansard source

Thank you, Senator Chandler. The reforms announced in the 2021 budget the Your Future, Your Super package will create efficiencies, reduce costs and reduce duplication through four measures. First, that's done by ensuring that superannuation follows you when you change jobs. This will stop the creation of unwanted multiple accounts that reduce retirement savings through duplicate fees and insurance premiums. Second, it's done by introducing a new and interactive online YourSuper comparison tool. This will empower members to make better decisions about who manages their retirement savings. The YourSuper tool will help members compare and select MySuper products that best meet their needs. Third, it's done by holding funds to account for underperformance by introducing an objective performance test. Funds that fail that test will be required to inform their members. If they fail in two consecutive years, they will be stopped from taking new members. And, fourth, it's done by increasing transparency and accountability, ensuring that trustees act in the best financial interests of members to maximise their retirement savings. (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

I'm going to ask senators to my left to restrain themselves. Make a special effort for the first day back. Senator Chandler, a further supplementary question?

Claire Chandler (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Can the minister outline the importance of a superannuation system that holds funds to account for underperformance?

Jane Hume (Victoria, Liberal Party, Minister for Superannuation, Financial Services and the Digital Economy) Share this | Link to this | Hansard source

We in this government have steadily raised the bar on superannuation performance expectations and governance structures since we came to power. Our focus has squarely been on ensuring superannuation delivers for members, for consumers and for everyday Australians. The Your Future, Your Super package will protect members from poor outcomes and encourage funds to lower their costs. The Morrison government want, and they expect, superannuation to deliver more for Australians. The Your Future, Your Super reforms will do just that.

It wasn't until we, on this side of the chamber, came to government that the superannuation system had a light shone on underperformance and inefficiencies. We know this because our changes to the super system to make it more competitive, transparent and efficient have had great effect: 800,000 Australians who were locked into a fund by their employers now have the choice to choose their own fund, $760 million was paid to 700,000 employees through our amnesty measures and $3.7 billion in unintended accounts have been consolidated. (Time expired)