Michael Johnson (Ryan, Liberal Party) Share this | Link to this | Hansard source

I have a question that actually affects people’s lives.

David Hawker (Speaker) Share this | Link to this | Hansard source

Order! The member for Ryan will come to his question.

Michael Johnson (Ryan, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Revenue and Assistant Treasurer. Would the minister outline to the House how new measures will directly benefit low- and middle-income earners as they build their retirement savings?

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

I thank the member for Ryan for his question. He has a great capacity to represent well the people in his electorate who are on middle and lower incomes, as well as higher income earners. In fact, in the 2005-06 financial year, 8,189 people in the Ryan electorate received up to $3,000 as their co-contribution payment from the Howard government for their contribution of up to a $1,000 after-tax payment into their superannuation fund.

That builds on the policy of the Howard government which meant that, for 972,000 Australians who made a contribution into their superannuation fund in the financial year 2005-06, and because of the good economic management that we have enjoyed over the last 11 years, they will receive up to $3,000 into their superannuation. For low- and middle-income earners, in particular for those who are on incomes under $28,000 a year, that will have an incredibly compounding benefit into retirement.

For this government, when we talk about good, sound economic management over the last 11 years, we are talking about delivering better retirement incomes for older Australians. We are talking about delivering better retirement outcomes for younger Australians. We have created a system that could very easily be undone by the Australian Labor Party if they were elected at the end of this year and allowed the union movement to run this country again. If the union movement were in charge of this country again, if they run the businesses of this country into the ground again, if they increase unemployment, if they put upward pressure on inflation, that will mean bad outcomes not just for Australian families but for Australian retirees as well.

This government has worked hard to manage the Australian economy well so that we can support older Australians into their retirement. We do not want that hard work undone if the union movement get back in control of this country. They would be bad for business and that is bad for returns to people’s superannuation funds.

I say to all Australians that, as we approach 30 June and you are looking at your superannuation statements, and you are thinking about your financial position, know this: if the union movement gets back in control of this country, of this economy, and runs the economy down again, the returns to people’s superannuation funds will be equally diminished.

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.