Sam Rae (Hawke, Australian Labor Party) Share this | Hansard source

Listening to the contributions of those opposite to this debate on superannuation tax, it is clear that the Liberal Party is clutching at straws, frantically scrambling to maintain a misplaced sense of economic superiority. After inheriting $1 trillion of Liberal debt as well as growing spending pressures in defence, health, aged care and the NDIS, the Albanese Labor government has been up-front about the economic challenges we face. Unlike the Liberals opposite, we are taking a responsible approach to these challenges. We aren't trying to rort our way to re-election and we aren't ignoring the need to secure our nation's economic future. Labor's economic plan is about repair, restraint and targeted relief, after almost a decade of economic mismanagement at the hands of the Liberal Party.

This change to superannuation tax breaks is a small part of that. Despite the agitation from those opposite, the adjustment being made to superannuation tax breaks is very modest, only affecting earnings on balances above $3 million, a figure that represents just half of one per cent of Australians—the top half of one per cent of Australians. It is also entirely in line with existing norms not to index the threshold. We don't index the tax-free threshold, the personal tax thresholds or the corporate tax thresholds. Instead, the parliament sets a threshold, and the parliament decides to change it in line with community expectations from time to time. This is a modest change to superannuation tax breaks, to be implemented in line with existing taxation practice after the next election.

Yet somehow those opposite have decided that this is the silver bullet to their political woes. They gamble that this is the point that demonstrates that Australians should put their economic faith in the people who gave us $1 trillion of Liberal debt rather than in the government that delivered the first surplus in 15 years. Those opposite are suffering from an identity crisis. For years they have tried to fool Australians into believing that they are somehow superior economic managers, repeatedly assuring the public that only they could get the budget back in black. Now, we may not have the mugs to prove it, but the Albanese Labor government has returned the budget to surplus after just 12 months in office. So, I understand why the Liberals opposite are clutching at straws like this. But unfortunately they just don't get it.

Treasury projects that only the top 10 per cent of earners retiring in 2052 will have a superannuation balance of $3 million or more upon retirement, demonstrating that the $3 million threshold strikes the right balance between providing incentives to save for retirement and strengthening the super system by making it more sustainable over time. However, if they had it their way—the mob that gave us $1 trillion worth of Liberal debt—we'd be borrowing even more money to subsidise people who already have millions of dollars in their super accounts so they could continue to enjoy the privileged economic conditions they find themselves in.

The opposition have no integrity or principle to stand on, when you think back to their changes in 2017. On introduction, the coalition's change was estimated to impact about one per cent of people who had a superannuation account in 2017-18. That is twice the proportion of those affected by this very modest adjustment. Treasury projects that at least the top 30 per cent of earners retiring in 2052 will have paid additional tax contributions in their working life under the threshold legislated by the coalition—three times the proportion affected by our change. For all of the bluster coming from those opposite, it is absolutely clear—crystal clear—that they just do not know how to effectively manage the superannuation system, let alone the economy that their egos are so invested in.

Labor built the superannuation system, a superannuation system that serves working people and provides for comfort and dignity in retirement. Only a Labor government can be trusted to protect this system and make it stronger. This budget and the changes that are contained within it are focused on making life letter and more secure for Australians, for working Australians, while those opposite will continue to dither as they try to protect the privileged interests of the top half. (Time expired)

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