Matt Thistlethwaite (Kingsford Smith, Australian Labor Party, Shadow Assistant Minister for Financial Services) Share this | Hansard source

The Liberals are undertaking a double-barrelled attack on superannuation in Australia. Firstly, they're encouraging Australians to raid their superannuation savings, to raid their retirement savings, and take that money out, and we've seen evidence of people doing that in circumstances where they haven't had reductions in their income. Unfortunately, the evidence has indicated that in some respects the money's being wasted. We know people are spending it on gambling. We know people are spending it on alcohol. The comeback from those opposite is: 'It's their money.' It is their money, but it was established to ensure that they had dignity in retirement, not to waste on gambling during their working years. And that's the problem with what this government's implemented when it comes to the early release scheme.

The second barrel of the attack on superannuation is that it appears government backbenchers are being encouraged by members of the executive to say that the government shouldn't meet the commitment they delivered to the Australian people prior to last election—an iron-clad promise they made to increase the minimum contribution to superannuation from 9½ per cent to 12 per cent. This represents a breach of trust with the Australian people. They committed to that superannuation increase and now they're beginning the process of moving away from it and dumping it. Those opposite will say: 'It should go into wages. During a pandemic, during this period, it should go into people's wages so that they can save for their own home and the like.' As we've seen in the past, the problem with that philosophy is that, when you stall or you cut out increases in compulsory superannuation, the money doesn't go into people's wages at all. It goes into the pockets of businesses and into profits for big companies. That's where the money goes—it doesn't go to increasing the incomes of Australian workers. That's why the government are wrong about what we anticipate they're going to do in the coming months in again halting increases in superannuation savings. It's true to form for this government, and that is why the second reading amendment moved by the member for Whitlam should be agreed to. Every single government MP should come into this chamber and explain to the Australian people, who elected them, why they're going to break the commitment they made to them prior to the last election to increase compulsory superannuation so that Australian workers could have dignity in retirement.

In terms of the substantive bill, the Superannuation Amendment (PSSAP Membership) Bill 2020, Labor will be supporting this element of the bill. We're supporting it because it's a sensible amendment. The bill allows former Public Sector Superannuation accumulation plan members to use their PSSap accounts for contributions in respect of any employment, including employment that does not attract a superannuation guarantee obligation. If they wish to make other contributions, such as non-concessional contributions, it means that, if they get a job outside of the public sector, they can still contribute to their public sector account. Current PSSap members can use their PSSap account for contributions from non-Commonwealth employers that they're working for at the same time. The Commonwealth Superannuation Scheme and Public Sector Superannuation members can establish a PSSap account for contribution from non-Commonwealth employers they are working for at the same time.

The CSS and PSS members who cease being members and become pensioners, in the superannuation sense, or take a lump sum benefit to establish a PSSap account for contributions from non-Commonwealth employers or from other contributions, such as non-concessional contributions, can also use their PSSap account for that. CSS deferred benefit or PSS preserved benefit members can establish a PSSap account for contributions from non-Commonwealth employers or for other contributions, such as non-concessional contributions. Around 10,000 individuals would be able to utilise these new arrangements, with most of them being former PSSap members using their existing accounts for future super contributions. These are sensible changes to a legislative framework which allows for the continued use of PSSap accounts as well as for members of the old defined benefit scheme who want to use their PSSap account system.

Whilst these are sensible amendments, I again go back to the comments that I made earlier, and those are to encourage the government to abandon this disastrous proposal that we all know is coming. They're laying the groundwork for it now. First, you get a few from the backbench start to make noise about it, and then you get the odd minister. Now the minister's saying she's agnostic about it. The Prime Minister's saying, 'I'll wait until the review comes down'—the review of the retirement income system that was handed to the government a month ago and that they won't release to the Australian public. The groundwork is being laid for this government to walk away from its commitment to the Australian people to increase compulsory superannuation contributions to ensure that people do have dignity in retirement and that, through that important tax concession that exists around superannuation savings, Australian workers get the support from the Australian government that they deserve for the contribution that they've made to our economy over their whole working lives. Increasing compulsory superannuation contributions, in line with actuarial advice, will ensure that people have a reasonable income to retire on, particularly low-paid workers and women. I urge those opposite to support this amendment moved by the member for Whitlam and come into this chamber and be frank and upfront with the Australian people. Tell your constituents what you are going to do with this particular proposal to stop the increase to compulsory superannuation in Australia.

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