Kevin Hogan (Page, National Party, Assistant Minister to the Deputy Prime Minister) Share this | Hansard source

Firstly, I'd like to thank all members who have contributed to this debate. The Superannuation Amendment (PSSAP Membership) Bill 2020 extends membership of the Public Sector Superannuation accumulation plan to certain current and former Commonwealth employees who are not otherwise eligible to continue making contributions to a fund run by the Commonwealth Superannuation Corporation. The bill will ensure that the choice-of-fund principle extends appropriately to Commonwealth public sector schemes. It allows current and former PSSap members to avoid paying multiple fees to maintain separate funds under different trustees. This bill will support them in saving for their retirement.

The bill allows former PSSap contributory members to use their existing PSSap accounts in respect of any employment, like self-employment, and not just employment that attracts a superannuation guarantee obligation. To make their other contributions, such as non-concessional contributions, PSSap contributing members will also be able to make contributions to their account in respect of any non-Commonwealth employment that they undertake concurrent with their Commonwealth employment—for instance, where they work part-time for the government and part-time for a private employer.

The bill also allows certain members of the main Australian government civilian defined benefits superannuation schemes, the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme, who currently are contributing or preserved benefit members, to establish PSSap accounts where they choose to also have future superannuation contributions held by the Commonwealth Superannuation Corporation. The reforms contained in this bill are consistent with the government's broader superannuation objectives to lower the cost that members incur for the administration and management of their superannuation accounts.

The opposition has moved a second reading amendment related to the super guarantee rate and the age pension, neither of which is affected by the current bill. The opposition have low credibility on retirement issues, given their continued commitment to a $57 billion retiree tax that would hit almost one million Australians' self-managed super funds and some larger super funds. This is still Labor policy.

On the age pension, I note that, since the coalition was elected in 2013, pensions have increased by $135.90 a fortnight for singles and $204.80 a fortnight for couples combined—and, to help manage the impact of the coronavirus, pensioners have received two $750 economic support payments. We also reduced social security deeming rates in May.

To return to the bill before us, I note that it relates to specific Commonwealth public sector super schemes and not to general superannuation law. The bill, in short, facilitates the continuity of superannuation arrangements as workers move in and out of Commonwealth employment as they pursue diverse careers. These are sensible modernising reforms. I commend the bill to the House.

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