Jerome Laxale (Bennelong, Australian Labor Party) Share this | Hansard source

This motion, while wrapped in concern for young Australians and their financial future, is nothing more than another example of the Liberal Party's ongoing attack on our superannuation system. It's an affront to the principles underpinning the security and dignity of retirement for millions of Australians. But, to be honest, it shows the consistency of the Liberals' attitude towards super and its purpose.

Labor built the superannuation system. We have always been, and will always be, the party that stands for a fair and secure retirement for all Australians through a fair system of compulsory savings. The superannuation system was created by Labor in 1992. It is one of the great economic and social success stories of our nation. It has grown into a nearly $4 trillion pool of savings, making it one of the largest pension funds in the world. This system is not just a collection of individual accounts. It's a collective promise that every Australian should have a dignified retirement.

The member for Groom's motion notes the importance of superannuation, especially for young Australians. I couldn't agree more. However, the actions of those proposing this motion speak louder than their words. Time and time again the Liberal Party have shown that their true intent is to undermine the very foundations of what makes our superannuation system great. The Liberal Party's track record speaks for itself. They opposed super when it was first brought into this place, arguing that higher contributions would reduce take-home pay and burden employers. They have opposed increases to the superannuation guarantee rate. They've frozen it, and they've delayed planned increases. They have continually tried to undermine and interfere with industry super, attacking its governance and fund arrangements, all while industry super outperforms its competitors.

Then, during the pandemic, they allowed the early release of super—against advice—resulting in around $36 billion being withdrawn from super accounts in a matter of months. They let young people raid their retirement savings to underpin their flawed response to the pandemic. It will cost these young people, and it will cost our country in due course. A young person who took advantage of Scott Morrison's scheme is estimated to be $120,000 worse off in retirement. But what those opposite failed to acknowledge is that these contributions are essential for ensuring that workers have enough savings to retire comfortably. They suggest that we should allow first home buyers to do the same—to use their superannuation savings to purchase property—which sounds like a nice idea on the surface, before you take a second to look at the facts.

Analysis has shown that such a policy not only would fail to increase housing affordability but would likely inflate median city property prices by around $75,000. This would make homeownership more out of reach for many young Australians—the very opposite of what the policy claims to achieve. Moreover, and most importantly, it would erode the retirement savings that these young Australians will rely on in the future. This is not a solution. It's a disaster in making both housing affordability and retirement security even harder. It would strip away the future financial security of young Australians under the guise of homeownership. Instead of creating a pathway to owning a home, it would drive up house prices and deepen the housing affordability crisis. If the coalition were serious about housing affordability, they would support measures in the parliament aimed at increasing supply. Instead, they propose this reckless policy time and time again, one that they took to the last election, which they were defeated at, that seeks to attack compulsory superannuation.

Our government, on the other hand, is acting to protect the integrity of the superannuation system for all Australians. We want to protect and strengthen it. We are focused on legislating the objective of super to ensure that it remains a robust system that can't be dismantled in short-term political interests. We are committed to policies that support Australians in both their working lives and their retirement. The superannuation system is not just a financial mechanism; it's a cornerstone of social equity in Australia. It ensures that people from all walks of life can build a nest egg that supports them in retirement.

The Liberals' repeated attacks on the system are not about protecting young Australians; they are about undermining a collective system that they have historically ideologically opposed. This motion is just a thinly veiled attempt to justify policies that would harm the long-term financial security of Australians, particularly the young. Their continual attacks on super, where they want Australians to raid their balances, must be opposed at every turn.

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