Rowan Ramsey (Grey, Liberal Party) Share this | Hansard source

I believe that the subject of today's MPI is that the government is undermining superannuation of working Australians. Aside from the fact, of course, that this is a totally faulty premise, I am just amazed that the Labor Party would bring this particular subject into this chamber today, after the scurrilous, low-grade, reprehensible and ill-fated attack on the Prime Minister and his investment decisions. They have just displayed their ignorance in their questioning of the Prime Minister today. It is unbelievable, because this totally ignorant attack on the Prime Minister has been led by none other than the assistant shadow Treasurer and the assistant finance minister. Their ignorance in the way international managed funds invest—and why they invest—in certain places has been manifest today. It has been unbelievable, really, because many of them have money invested in superannuation funds that also have investments in the Cayman Islands. Their attack today is unbelievable, because their own leader has sat on a superannuation board that had and continues to have investments in the Cayman Islands.

Why do they bring this subject to the parliament today? I think it is because they are desperate to turn the spotlight off themselves and on to something else, and they do not really care what it is. They do not want to talk about the royal commission into union corruption, for instance. They particularly would not like to speak about their baseless attack on ChAFTA. And they certainly do not want to be talking about their scurrilous and low-grade attack on the Prime Minister today and yesterday. So they turn to superannuation, and their government's attempt to bring world's best practice to bear on this industry. It has been brought up before that there is $2 trillion invested in Australian superannuation schemes today. That is expected to lead to a $9 trillion investment by 2040.

One of the most important things that Australian investors in superannuation funds must have is trust. After their family house, the biggest investment they are likely to have in their life is their investment in their superannuation fund. They deserve superannuation funds that are transparent, open and do not have an implied conflict of interest—hence the government's move to make one-third of superannuation fund board directors independent, an action based on the advice of the Cooper review and the Financial System Inquiry. The government's motives are above board and clearly apparent and certainly do not undermine the superannuation of working Australians. In fact, they are ensuring their future.

Another issue raised here today is the low income superannuation offset. Once again we have seen the Labor Party's ignorance about the way that financial payments and systems work. A tax deduction is one thing; a cash payment is another—and that is what a taxation offset becomes. At a time when the government is borrowing to meet day-to-day expenses, courtesy of Labor's last stint in government, the Labor Party is suggesting that the government should borrow money for individuals to put in their superannuation accounts so that they will not draw on the pension as much later on. That makes about as much sense as trying to get water to run uphill. We would be borrowing off today's taxpayers to try and fund some kind of superannuation break for people in the future who would otherwise be on the pension. Either way they would be relying on the taxpayer of the day to meet that expense. It just makes no sense at all.

When you are talking about taxation relief, you are providing an incentive to people to put their own money into a superannuation scheme, which will relieve the burden on the taxpayers of the future. This government is working to ensure that superannuation is a sound and just system in the future for the Australian workers of today.

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