Cassandra Fernando (Holt, Australian Labor Party) Share this | Hansard source

It has been a year since the Albanese Labor government was voted into power by hardworking Australians, and what a fantastic year it has been. Despite inheriting $1 trillion of debt accrued as a result of a decade of the coalition's mismanagement, the government has got on with fixing our nation. It has been honest and upfront about the challenges we as a nation and as an economy face. This is a stark departure from the landmark 'cover-up upon cover-up' style that characterised the coalition government. Besides the $1 trillion of Liberal debt, these challenges include global economic pressures and growing spending on defence, health, aged care and the NDIS. This government's ability to deliver a surplus for the 2022-2023 financial year, for the first time in 15 years, in spite of these challenges demonstrates its commitment to delivering a better future for every single Australian.

While we are starting off in a good position, thanks to the leadership of the Prime Minister, Anthony Albanese, Treasurer Jim Chalmers and Assistant Treasurer and Minister for Financial Services Stephen Jones, our work on fixing the debt we inherited and restoring sound economic management does not end there. A part of this includes modest adjustments to superannuation tax rates for earnings on balances above $3 million. This adjustment will not come into effect until after the next election. This change will not affect 99.5 per cent of Australians with super accounts, who will instead continue to receive the same generous tax breaks. The 0.5 per cent of Australians with super accounts above $3 million that are affected by this change will continue to receive tax breaks, although slightly less than before.

But this point doesn't seem to be understood by those opposite, which is not surprising considering the coalition was a government for the few and not for the many. The coalition continue to be working in the interests of 0.5 per cent of Australians, among the wealthiest in this country, and are not concerned about the welfare of the 99.5 per cent. What the opposition is asking is for a break from standard practice of non-indexing thresholds. We do not index the tax-free threshold. We do not index the personal tax threshold. We do not index the corporate tax threshold. It is a custom for parliament to fix the threshold and respond to community expectations by changing it from time to time. This is what the parliament of Australia, the country's peak representative body is for: to give effect to contemporary community expectations in the present and in the future.

I joined the Australian Labor Party because, among other things, Labor built the superannuation system. It was the Keating Labor government that introduced the compulsory employer contribution scheme, and successive Labor governments have strengthened the system, despite continued attacks by those opposite.

A $3 million threshold strikes the right balance between incentives to save for retirement and strengthening the superannuation system by making it more sustainable over time. The 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. The opposition have no integrity or principle to stand on when we remember the changes they introduced in 2017. On their introduction, the coalition's changes were estimated to impact about one per cent of people with a superannuation account in 2017 and 2018. The Treasury projects that at least the top 30 per cent of earners retiring in 2052 will have paid additional contributions tax, in their working life, that is under the threshold legislated by the coalition. Yes, that's right—thrice the amount of Australians affected by our change.

When Australians are doing it tough, this government's principal priority is targeted cost-of-living relief through a responsible and supportive budget. On the other hand, the priority of the Liberals is bigger tax breaks for the people who already have $100 million in superannuation. Indeed, the mob that gave us a trillion dollars in debt wants Australia to borrow even more money to provide subsidies for the richest 0.5 per cent of Australians. (Time expired)

See this speech in context