Melissa Price (Durack, Liberal Party) Share this | Hansard source

I rise today to speak, yet again, on another promise this Albanese Labor government has broken. This time it relates to superannuation. This is the money that Australians are forced to set aside for their retirement. Well, Labor have now decided that they want to get their hands on this money.

With this legislation, the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 and the Superannuation (Better Targeted Superannuation Concessions) Imposition Bill 2023, the Albanese government seeks to reduce the tax concessions on total superannuation balances that exceed $3 million. This package of legislation has three major flaws that must be discussed. The first flaw is the fact that these bills, as I've mentioned, represent another broken promise from those opposite. Those opposite went to the election in 2022 promising zero changes to Australia's superannuation framework, yet with this legislation they are proposing to double the superannuation taxes on one in 10 Australians by the time those people retire.

Those opposite will pretend that this policy change will impact only the very wealthy—who, ironically, they now plan to help with energy price relief; maybe they do like the wealthy after all—but that couldn't be further from the truth. These tax hikes will affect people across so many professions—and these are people who are just starting out in their professional career—including tradies; police; nurses; accountants; FIFO workers, many of whom live in the Pilbara region in my electorate; and farmers. Maybe that's not today. It's maybe not today that they will have $3 million in their superannuation fund, but there is a possibility they will do, without a doubt.

From a government that campaigned at the last election on a platform of trust and transparency, this package stinks of gross hypocrisy. But no-one around Australia should be surprised, as this is just the latest in a long line of broken promises. As we know, the mob opposite have got form. On over a hundred occasions prior to the last election, the Labor Party promised to follow through on the already legislated stage 3 tax cuts, yet according to recent reporting the Treasurer asked his department for advice on changes to the stage 3 tax cuts as early as June 2022, one month after the May 2022 election. So it appears those opposite were preparing to break this promise to the Australian electorate just one month after they'd made it.

This Labor government wants taxpayers across the country to believe that the revised tax cuts are monumental and will make a real difference in helping to change and manage the cost-of-living crisis that those opposite are responsible for. Well, it's a nice story but it's a real shame for those opposite that the facts always get in the way of their rose coloured narrative. In reality, an earner on an annual wage of around $85,000 will receive just $15.46 more a week under the reforms. It might make a difference for some, but I don't think that it will make a huge difference to a lot of people. The OECD also recently released their Taxing wages 2024 report and, sadly, Australia's personal income tax burden grew faster than in any other advanced economy last year. How embarrassing is that? Funnily enough, Labor members failed to mention that to their constituents when highlighting their tax policy.

Of course, the central message that Labor used at the last election was that life would be cheaper under them—that life would be better under a Labor led government. I'll admit that some of those on Labor's frontbench are pretty good spinners—they may be better than, or maybe not worse than, Shane Warne—but even they couldn't possibly say that Australians are better off than before they came to office. You would have to ask the average Australian on the street, 'Are you better off since May 2022?' Those opposite can't hide from the fact that everything has gone up under them: housing, rent, electricity, gas, insurance, petrol—you name it, and it's a fair bet that it costs more under those opposite. Of course, mortgage stress is causing massive pain for so many Australian families, including in my electorate of Durack. Despite promising cheaper mortgages, the typical mortgage for Australians is now more than $35,000 worse off. Getting homegrown inflation down and providing the conditions to enable the Reserve Bank to reduce interest rates should be the highest priority for this government. However, sadly, it looks like last night's budget won't deliver any lasting relief for mortgage holders.

Steven Hamilton, an economist writing in the Australian Financial Review, described last night's as the most irresponsible budget in recent memory. He went on to say that during an inflation crisis, with the Reserve Bank on the precipice of a further rate increase, it was 'downright reckless'. Last night, the Treasurer announced $315 billion in new spending. That's $30,000 in extra spending for every Australian household. Not only will this be reckless spending which will keep homegrown inflation higher for longer but their spending addiction is the reason that Labor need to introduce legislation like this, which increases superannuation taxes.

Here's another quote that no one will soon forget: 'My word is my bond.' Remember that? I'm sure everyone in this place and around Australia remembers that gem from the Prime Minister. Those opposite must absolutely cringe when they hear that. It pains me to say that the Prime Minister's word and bond are, sadly, about as reliable as my dear Freemantle Football Club! You really want to trust them; you wake up in the morning and you think, 'Today is going to be a good day,' but, unfortunately, they just keep failing to deliver on their promises.

The second major flaw with this superannuation legislation is the disastrous impact it will have on younger Australians. The Albanese government has failed to index this superannuation penalty. According to analysis conducted by the Treasurer's very own department, a 20-year-old today who earns an average income will pay higher taxes under this scheme. Up to two million Australians could be captured by this by the time they retire. Why has Labor decided to harm so many younger Australians with this legislation? These are people who are just starting out on their careers today. To cut a long story short, Labor believe that they can take the youth vote for granted. That's why they can raise their taxes and not address the issues that matter to them the most. You could go out and ask any random group of young Australians what their priorities are and I think we all know we can guarantee that housing is right up there. And yet entering the market has never been harder, and those opposite have absolutely no credible plan to help our young people achieve the Australian dream of home ownership. I say that they have stolen that dream—those opposite have stolen the dream of home ownership.

Last night's budget confirmed Labor are planning a migrant intake of 1.67 million people over the next five years. Young people are already struggling to find affordable housing, with rental vacancy rates across the country reaching record lows under this government. Labor's grand plan, however, is to continue their failed policy of immigration fast outpacing new builds. It's clear Labor is committed to a big Australia policy, no matter the consequences.

Once we are back in government after the next election, we will return migration to sustainable levels and provide support for first home buyers to enter the market and finally achieve the Australian dream. One of the ways we are going to do that is through allowing access to superannuation. Our super home buyer scheme will allow first home buyers to invest up to 40 per cent of their superannuation, up to a maximum of $50,000, to help with the purchase of their first home, and there stands a huge contrast between the approach of the coalition and those opposite. The coalition is open to allowing young people to access their superannuation to give them the best form of security for their retirement—that being, owning their own home.

Meanwhile, the Labor Party is steadfastly opposed to this proposal but is instead fine with increasing taxes on those superannuation savings. The Labor Party should not count on the youth vote at the next election if they continue to fail to deliver on their main priorities.

The final aspect of this legislation which deserves condemnation is the fact that unrealised capital gains are captured. What this means in practical terms is that many retirees and superannuants will face tax bills on money they haven't even earned yet. The concept is truly bizarre. This is, of course, going to disproportionately hurt Australians with self-managed superannuation funds. The Australian this week posed an interesting scenario that will be of particular interest to farmers within my electorate of Durack. Imagine a farmer whose super fund owns the farm. There are many thousands of families set up in such a way. He has a couple of good years, so he pays the unrealised gains. Then a five-year drought hits—not such a weird and wacky idea; it's possible in our country—and his enterprise is essentially worthless. Do you think Labor will support returning the unrealised gains to him, return them back to the farmer who is battling to feed his animals? Of course not.

The National Farmers' Federation have raised their concerns, expressing:

These reforms could be like a sledgehammer to succession planning for family farms.

The nature of farming means the businesses are structured differently, so rather than making regular superannuation contributions, many farmers hold their homes and businesses in Self-Managed Superannuation Funds (SMSFs).

In many cases, older farmers will hold their farm in an SMSF and lease it to their children, providing both retirement income for them while giving the next generation an opportunity to start farming.

It's clear, between this targeting of self-managed super funds and the refusal to allow young people to use their super to purchase their first home, Labor is simply trying to bolster the industry super funds, the same funds that donate millions to unions across the country and ultimately to the Labor party. How are these donations supporting people in their retirement?

To conclude, I will not be supporting these bills—how could you possibly? They do nothing to combat the cost of living, which is what the government should be focused on, and will disproportionately impact younger Australians—as if they are not doing it tough enough. They represent a terrible betrayal of trust and only serve to fuel Labor's unhealthy spending addiction. Things never change. Remember, when Labor run out of money they come after yours.

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