Jane Prentice (Ryan, Liberal Party) Share this | Hansard source

I rise to speak on the member for Greenway's motion on superannuation policy. The Australian people do not deserve this government. They do not deserve a government that has increased taxes on superannuation by $8 billion. They do not deserve a government that has attacked the voluntary savings of low-income earners by drastically cutting the super co-contribution scheme. Nor do they deserve a government that continually ignores self-funded retirees, who are facing the prospect of their hard-earned money being stripped away from them because this government cannot manage the economy.

What this motion does not mention is what this incompetent Labor government has done since it got into power. True to Labor form, it has increased taxes on superannuation time and time again, reducing the ability for Australians to save for their retirement. Quite simply, this government cannot be trusted on superannuation. After years of reckless spending and racking up $172 billion in debt, the Treasurer has come to the point where he has increased taxes so much on current income that he has run out of ideas on how to extend the ATM of Australian workers that he treats as his own personal cash cow. Not content with slugging the Australian economy with more than 25 new taxes, hurting industry in Australia and damaging the hip-pocket of Australian households, and so incompetent is this Treasurer that he is looking to further tax the savings of Australians. The Treasurer has not ruled out that the Labor government will increase income tax rates, nor has he ruled out that the Labor government will increase tax rates on legitimate withdrawals from superannuation funds. The Treasurer is now turning towards the money which people have already earned, on which they have already paid tax and, quite legitimately, thought would be there to serve them in their retirement.

Furthermore, this government has increased taxes on voluntary savings by slashing concessional contribution caps from $50,000 and $100,000 down to $25,000. We in the coalition believe that Australians who are saving for their retirement and putting up to $25,000 into their superannuation per year at a 15 per cent tax rate are not rich. They represent the families playing catch-up with their retirement savings after their children have grown up and they have paid off most or all of their mortgage. Added to this, anyone contributing more than $25,000 per year in pre-tax income to superannuation is already taxed at the top marginal tax rate of 46.5 per cent. Given that people are required to lock up their super savings until retirement, if the tax rate on contributions or earnings is not more attractive than that on take-home pay we will see people start to minimise their superannuation savings.

This motion also mentions the importance of the low-income superannuation co-contribution—a very important policy implemented by the Howard government. Again, this motion does not mention that, since 2007, Labor has cut the government's super co-contribution benefits for lower income earners by more than $3.3 billion by reducing the government's super co-contribution for lower income earners from $1,500 under the Howard government to just $500.

Should the Coalition form government at the next election, we will revisit concessional superannuation caps and super co-contribution benefits when the budget is in a strong enough position. The Leader of the Opposition has already announced that there will be no more unexpected detrimental changes to superannuation. This is because we support all Australians who want to make responsible savings for their retirement. We do this not just because it makes sense for every Australian but because it makes perfect sense for the future affordability of serving older Australians in the years ahead. It is absolutely crucial that we get every aspect of our retirement income system functioning as efficiently and sustainably as possible. Encouraging voluntary savings is an integral part of that.

We must make ensure that the system of compulsory contributions to superannuation that employers pay—not government, employers—is as straightforward as possible. We must also ensure that there is sufficient incentive for workers to donate above and beyond the compulsory contributions. The coalition is committed to the most efficient, transparent and competitive superannuation system, and that is what we will keep working towards in government. We will restore hope, reward and opportunity to Australians who are saving for their retirement, because Australians deserve a government that will protect the future of all Australians.

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