Scott Buchholz (Wright, Liberal Party) Share this | Hansard source

Absolutely. It is strange to hear the words 'efficient' and 'infrastructure' used in conjunction with this government, because to date its record has been one of inefficiency almost across the board. From the pink batts debacle all the way through to the NBN, this government in all cases has managed to take the most inefficient approach possible.

While there are special circumstances in which superannuation can be accessed, including medical conditions and severe financial hardship, the Australian tax office has recently noted that a number of schemes are promising customers that they can help access super for reasons such as paying off credit card debt, paying bills, buying new cars or even going on holidays. Last year around 1,300 people were sprung by the Australian Taxation Office for participating in such schemes. I would like to remind anyone considering involving themselves in one of these dodgy schemes that not only are the schemes illegal, but they will also cost you a whole lot more than you expect and you could even potentially end up in jail.

In the current economic climate, while we remain vulnerable to the tremors and quakes currently disrupting global markets, while cost-of-living pressures are squeezing every last spare dollar out of ordinary hardworking families, while the government is planning on adding to the pain with the introduction of its illegitimate and pointless carbon tax—in times like this—it is no wonder that more and more people would be looking to get hold of their super. That is the point I was making earlier with reference to cost-of-living pressures. That was the point I was making about people wanting to get access to their superannuation just to make ends meet. I make the point that electricity prices are up 16 per cent, after going up another 10 per cent from the year before; gas is up 18 per cent, after a 13 per cent jump last year; and water is up 16 per cent, after another 13 per cent last year; and it just goes on and on.

In Queensland, power bills alone have increased by more than 60 per cent in less than five years. That is the point I was making earlier. What do you reckon will happen when the carbon tax kicks in? Is it any wonder that we are seeing more shonky operators out there trying to take advantage of people who are looking at the smashed remnants of their piggybanks and wondering what they are going to do next? Things are undoubtedly tough at the moment and when times are tough people want to know that their government is exercising the same sort of restraint and fiscal responsibility that they are having to undergo in their household budgets.

I also want to bring your attention to a case that we are dealing with in our electorate office at the moment that is relevant to the early release of superannuation. I am fearful that we will continue as a nation to see more and more examples like this as people try to get access to their savings funds. One of my constituents is a lady who has a small marketing business based in a regional part of the electorate. Regretfully, our constituent—and a wonderful woman she is—is suffering from cancer. Her illness takes her away from her business, and like most small businesses, as we on this side will understand, often you are the CEO as well as the truck driver, the sales team, the marketer, the accounting department and customer service. One- and two-man-band teams have huge pressures on them. Because of her illness, she has been unable to work, but the cost pressures still land at her feet. The cost pressures of the tenancy agreement that she has for her building, the cost pressure of leases on vehicles, and the cost pressures of the continuing commitment for photocopiers, fax machines and phones still exist. Often when these small businesses enter the market to try to contribute to the economy of the nation they also have to service a business loan. Often that business loan is secured by the family home, the very home which they have worked their entire lives for. So illness has grasped this lady, and she is struggling to get access to her superannuation.

As I alluded to in my opening comments, this bill does not inhibit this case because the loopholes in this legislation are not touched. The bill only speaks to the transfer of the administration. The point I make is that I am very fearful that there will be many more Australian small businesses—many more mums and dads—who, as cost-of-living pressures are put upon them, will be drawn to try to access their savings from their superannuation.

Under circumstances such as these, I believe it is worth while to reflect on the ways in which members of the public can gain early access to their superannuation. The circumstances under which benefits may be released are, quite rightly, extremely limited. The first of these, and one covered by this bill, is an early release on compassionate grounds. In most cases, compassionate grounds refer to an applicant who needs the money to pay for medical costs associated with life-threatening illnesses and/or acute chronic pain and/or acute or chronic mental illness. However, these grounds rely upon the necessary treatment not being readily available through the public health system and not being covered by any applicable private health insurance or workers compensation.

Compassionate grounds may also be considered to prevent the family home being sold by the lender with whom the applicant has a home mortgage. There are numerous further conditions, chief among which is that the applicant's mortgage must be sufficiently in arrears for the lending institution to have decided to sell.

In some circumstances provisions can also be made for assistance to meet palliative care costs and for the costs associated with funeral, burial or cremation. There are of course other circumstances under which people can apply for the early release of superannuation, including severe financial hardship. However, as they are not part of this bill, I will not go into them today.

Nevertheless, the rules and regulations surrounding the early release of superannuation are fiendishly complex and there is no guarantee of success. In fact, of the approximately 16,000 applications received in the 2009-10 financial year, only 10,000 were approved. Approval ratings over the past three financial years are somewhere around 65 per cent. That is why we on this side of the House are pleased that this bill will finally allow applicants to deal face to face with professional customer service staff who will, hopefully, make the process significantly less arduous and significantly less stressful than it previously has been. As I said in my opening comments, the coalition does not oppose the bill. The bill deals with the administration of the early release of superannuation on compassionate grounds, and we support it.

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