Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Hansard source

I thank the honourable member for Makin for her question. I can inform her that the constituents of Makin, like other Australians, will benefit from the largest superannuation reform in at least two decades and, if you exclude bad reforms like the big one two decades ago, one of the best that has ever been made in respect of superannuation in this country. This is a plan to radically cut through the complexity of the superannuation system. It is a plan for no tax on end benefits: no tax on end benefits for lump sums and no tax on end benefits for pensions if you are in a taxed superannuation fund and you take your earnings after the age of 60.

As a consequence of that, we will now no longer need different rates for pre 1983 and post 1983, for pre 1994 and post 1994, for capital gains exempt, for getting the rebate and for a whole host of other complexities currently in the system. We will now no longer need reasonable benefits limits or age based limits because we will have one standard, universal limit. This will make superannuation an attractive savings vehicle for all Australians, and it will give people certainty in their retirement as a consequence.

The reform of the Australian superannuation system is broad-ranging reform and it is being undertaken by this government as part of its major tax reform in relation to income tax and business tax. It is a reform that will make retirement easier to understand. It will boost standards of living in retirement and it will boost Australia in a way in which we want to build our country into the future.

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