Dennis Jensen (Tangney, Liberal Party) Share this | Link to this | Hansard source

My question is addressed to the Minister for Revenue and Assistant Treasurer. Would the minister inform the House of new measures to help low- and middle-income earners build their retirement savings and secure their future prosperity?

Peter Dutton (Dickson, Liberal Party, Minister for Revenue and Assistant Treasurer) Share this | Link to this | Hansard source

I thank the member for Tangney for his question. In Tangney, as a result of the Howard government’s budget this year, 5,121 people will receive up to $3,000 in co-contribution payments, paid directly into their superannuation accounts. That is a return of up to $3,000 because of the good economic times that we are in at the moment which have been brought about by tough decisions by this government. We are contributing up to $3,000 for their $1,000 contribution. That is a great outcome, particularly for low-income Australians. In the honourable member’s electorate, just over 5,000 people will see $3,000 go into their super account to compound and, by the time they get to retirement, it will make a big difference to them in retirement. The co-contribution scheme introduced by this government, opposed by Labor at the time of its introduction, is a great way of helping middle- and low-income Australians put more money into their superannuation funds.

There is a lot of press around at this point in time about the returns from superannuation funds, with returns of up to 17 per cent on people’s investments in their superannuation funds. Do you know why that is? It is because the economy is in good shape. When people look at their superannuation statements—and they will be getting them between now and 30 June—they will see their balances rising because companies are earning profits, employing people and making good returns on their investments. That will make a big difference to people in retirement.

But there is a great threat to people’s retirement savings in this country. There is a great threat to the people who, when they look at their balances at the moment, see their balances going up. They know, as we do, that that threat is the Australian Labor Party. The Australian Labor Party are the greatest threat to the Australian economy and Australian business, and, if they are elected at the next election, that will be a bad outcome for people who are looking at accumulating wealth into retirement. It will be a bad outcome for young families who want more money in their pocket each fortnight, which is what this government has been able to provide. This government, through managing the Australian economy well, will help people save for their retirements and enjoy a much better lifestyle than Labor could ever promise.

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

Mr Speaker, I ask that further questions be placed on the Notice Paper.