Shayne Neumann (Blair, Australian Labor Party) Share this | Hansard source

I speak in support of the Superannuation Legislation Amendment (Early Release of Superannuation) Bill 2011. About 20 years ago, the Keating Labor government introduced one of the most significant economic reforms in the history of this country, the superannuation guarantee, which started at three per cent. It increased progressively to the current level of nine per cent, where it has stayed since 2003.

I was listening to the member for North Sydney's contribution in relation to this bill. It took me back. His forebears used the same arguments opposing Labor's reforms with respect to superannuation. In fact, all the way through, the idea of compulsory superannuation was denounced by the coalition as a job-destroying, antibusiness measure and a damaging, economy-destroying measure. Compulsory superannuation was opposed fiercely even though it would create financial security and dignity for older Australians. These are the same sorts of arguments that we hear today: 'We're all ruined,' is what they say—constant fear and smear.

That is all wrong, of course—wrong, wrong, wrong. In fact, in the year the nine per cent superannuation was introduced and in the years since, unemployment fell, productivity was higher and small businesses were started and prospered. The truth is that we have a superannuation sector worth about $1.4 trillion in retirement savings, which means that Australians will be able to enjoy income security in their retirement.

(Quorum formed) The coalition are truculent, obstinate and belligerent with respect to superannuation. All they do is oppose every reform. They took no policy into the last federal election campaign to increase superannuation from nine per cent to 12 per cent. The shadow Treasurer comes in here today and says that they will find it through savings. They could not find the savings to rebuild Queensland. It took them weeks to do that. Then they ended up with the One Nation playbook in relation to foreign aid to find it, which would have left a black hole of $1 billion in the budget if their policies on the flood levy had been adopted. That $1 billion black hole would have been on top of the $11 billion black hole they took to the last election. They reckon they will find the savings for it. They will not find the savings for it. They should be supporting Australians in their retirement. They have opposed every superannuation reform we could possibly have.

The shadow Treasurer does not even know why we are doing this. The review of this matter undertaken by the Treasury, by the Australian Prudential Regulation Authority and by the Department of Human Services found Medicare Australia to be the agency best placed to carry out this function. He does not even know that. He has not even looked at the review. He says, 'We are not opposed to it.' We know that some opposite are in support of an increase in superannuation for Australian workers. Federal politicians get 15.4 per cent. Why shouldn't the Australian public get an increase? Some 43,500 people in my electorate of Blair in South-East Queensland would get an increase in superannuation. They would get more money when they retire. This is important.

This reform comes as a result of a review. We are undertaking significant reviews in relation to these matters. This is a two-stage process. Since 3 February 2011 Medicare Australia has been performing this function under delegation from APRA. That was the first stage. The second stage will take place when this bill is given effect to and formally transfers the functions from APRA to Medicare Australia. This is an important reform because there are efficiencies here and we have customer service obligations. It will assist in better managing electronic business transactions.

Over $122 million was released on compassionate grounds in the year 2010-11, with an average of $11,316 being released on compassionate grounds. The circumstances in relation to compassionate grounds include: medical treatment, medical transport, modifications necessary for the family home or a motor vehicle due to severe disability, palliative care and funeral expenses. Funds can also be released to prevent the foreclosure of a mortgage or exercise the power of sale over the member's principal place of residence.

In relation to self-managed funds, the Commissioner of Taxation is the appropriate person. What is happening here is that, in relation to other superannuation, the general administration of superannuation funds on compassionate grounds that currently resides with APRA will be transferred to Medicare Australia. I think that is an appropriate reform because we have seen the benefit of Medicare Australia and the Department of Human Services in my electorate of Blair. When Australian people go through hard times they need to access some of the funds in their superannuation. In January 2011, when my electorate was devastated by the floodwaters from the Wivenhoe Dam, the Lockyer Creek, the Brisbane River and the Bremer River, my electorate office had numerous requests from residents to get access to their superannuation to assist them to move back into their homes and to help them to rebuild their homes. I had dozens of calls and requests from residents who wanted assistance through their superannuation funds. There were families and individuals who lost their homes in the floods—there were 3,000 homes in Ipswich and about 600 in the Somerset—and 279 agribusinesses were also damaged. They had been fighting insurance companies for months and had often been rejected. They needed a bit of a helping hand.

When dealing with the emotional trauma of evacuating their families and wondering how they could rebuild and move on they had to deal with myriad bureaucracies with various requests for information and different conditions of assistance and support. It was traumatic and it traumatised those people yet again. I know the benefit of the Department of Human Services. The Green Army was so important. The flood recovery people who wore dark green T-shirts and the people from Centrelink were symbols of hope for people. They were giving a helping hand and providing financial assistance. Most of those who turned to their superannuation funds for assistance either were declined or simply gave up because the process of applying on compassionate grounds was anything but compassionate. I need to stress that those residents in flood affected Blair would not necessarily have been able to access their funds courtesy of these amendments. The criteria for assessing early release of superannuation on compassionate grounds will remain the same. But putting this responsibility into Medicare Australia in the Department of Human Services I think creates a compassionate response. These are people who know how to deliver services and whom people who have been flood affected and are in hardship can identify as the people who provide help to them every day, every week, every month and every year.

This is not to say that APRA has not been an effective prudential regulator. But it does not have the support platform that Medicare Australia does to deal with clients—the shopfronts, call centres, customer support professionals and the like. And Medicare is more effective at dealing with people. This is why on 1 July 2011 we formed a new Department of Human Services—and it really is a new entity in many ways—to integrate Medicare, Centrelink and child support services. This is a key component of the federal Labor government's commitment to and focus on delivering services efficiently and effectively and making the whole service more client focused. I think that is good for people in my electorate. In Ipswich we are very fortunate to have a one-stop human services shop, effectively combining Medicare and Centrelink with the Local Connections to Work. I have seen firsthand the benefit to individuals and families as a result of this focus on clients rather than bureaucracy.

As a function of the Department of Human Services, it is my hope, and it is certainly my expectation, that Medicare will take a more benign and charitable approach to those wishing to access their superannuation early on compassionate grounds. Medicare personnel are already dealing with Australian Taxation Office and Centrelink personnel. They have better access to information to assess the needs of people. There are structures, systems and personnel in place to deal with them. Medicare has the experience, as I said, in electronic business transactions, and there is considerable technological infrastructure to process claims, and I saw that firsthand in January with the floods. There is significant potential to streamline this procedure, with the ultimate beneficiaries being people across the country, and certainly people in cyclone and flood affected Queensland.

Superannuation has been a concern of the Labor Party for 20 years. We have been strongly committed to compulsory superannuation. Those opposite mouth the words, but we have seen the history of the coalition parties: they have been opposed to superannuation reform, from their forebears in the 1990s all the way through. The key reform to increase superannuation from nine per cent to 12 per cent will make a very big difference. With an ageing population it is vital to ensure that Australians have enough money to retire on in the future. And, given that life expectancy is increasing and retirement is more an experience of decades rather than of just a few years, nine per cent is simply not enough and we need to go to 12 per cent. This is especially the case for women, who often have child-rearing breaks in their careers and have a longer life expectancy than men.

It is simply a shame and a disgrace that the coalition had no policy in the last election with respect to increasing superannuation and have steadfastly opposed, for 20 years, increases in superannuation. They have put the retirements of millions of Australians at risk and forced taxpayers to pay more for the aged pension.

We believe that this is an important reform. This amendment is just one of the steps that we are taking to make sure that superannuation continues to meet the needs of Australians in the future. It should be welcomed across the country and will certainly be welcomed in my community.

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