Kelly O'Dwyer (Higgins, Liberal Party, Minister for Revenue and Financial Services) Share this | Hansard source

I thank the member for Chisholm very much for her very first question in the House. She delivered a brilliant maiden speech just before question time today. I know that she has a number of supporters in the gallery—and that is because she is a very proud advocate for her community. She is someone who has lived the mantra of aspiration. And this is why we are making some modifications to our superannuation policy to make sure that it is fairer for all Australians, to make sure that they can achieve their aspiration to provide more for their retirement balance so that they can live a great retirement.

We have made some changes by not proceeding with the $500,000 non-concessional lifetime cap and instead taking it back to a reduced annual cap that will have an eligibility attached to it that means that they can only contribute those non-concessional or after tax amounts at a point where they have less than $1.6 million in superannuation. The reason we have done that is that we do not want to put a handbrake on their aspiration to get to the transfer balance cap.

Unlike those opposite, we on this side still believe in aspiration. We also believe in flexibility. We believe it is very important that we help and encourage people to provide for their retirement. We give them a level playing field for them to be able to make concessional contributions to their retirement. We do not think it is right that somebody who is employed by a small business that does not offer salary sacrificing cannot take advantage of their full concessional contribution. We do not think it is right that somebody who might have a part-salary income but also might have a small business also cannot contribute fully to their concessional contribution.

Those opposite would stamp out their aspiration and their flexibility to be able to contribute. We on this side believe it is important to make that contribution and to give them that aspiration. But we also think it is very important for working mothers—like Julie Banks, the member for Chisholm, who has lived this—to be able to have catch-up contributions. For those people who have spent time out of the workforce caring for their children and come back into the workforce, we believe it is important that they can catch up on their concessional contributions. So, from 1 July 2018, they will be able to do that on a rolling five-year basis.

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