Bill Shorten (Maribyrnong, Australian Labor Party, Minister for Financial Services and Superannuation) Share this | Link to this | Hansard source

I move:

That the amendments be considered immediately.

Question agreed to.

I move:

That the amendments be agreed to.

On 3 November 2011, I introduced the Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2012. Australia's superannuation savings pool stands at nearly $1.46 trillion and it grew 13 per cent over the year to September 2012. You hear a lot of doom and gloom in some parts of the Australian media about our superannuation, but the fact our retirement savings grew at a double-digit rate should give Australians confidence.

Last week ANZ launched its new Smart Choice superannuation product, which has been designed with the government's MySuper and Stronger Super reforms in mind. This, together with the ING Living Super launch I attended in September, gives a clear signal that the industry is embracing the MySuper reforms and launching new simple and affordable products.

A bill that provides tax relief for fund mergers—the so-called roll-over relief—has also passed the parliament. This will benefit millions of Australians because it removes a tax barrier that could have prevented otherwise viable fund mergers from proceeding. Again, another win in terms of cost and efficiency.

This was soon followed by the passage of a very significant reform for trans-Tasman relations that will establish trans-Tasman retirement savings portability. New Zealanders who move to Australia will now be able to consolidate their New Zealand retirement savings with their Australian superannuation benefits. Similarly, Australians moving to New Zealand, and New Zealanders returning home, will be able to take their Australian benefits with them, to consolidate with their New Zealand retirement savings. This reform will help the thousands of Australians and New Zealanders who move across the Tasman Sea each year. They will be able to consolidate their retirement savings in their country of residence and avoid paying fees and charges on accounts in the two countries. This will help literally tens of thousands of New Zealanders who moved to Australia in the last year and the 14,000 Australians who have moved to New Zealand.

The Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2012 delivers the government's 2010 election commitment to introduce a new simple, low-cost default superannuation product called MySuper. The MySuper reforms will put downward pressure on superannuation fees and they are a significant step towards enhancing the arrangements for workers' retirement savings. It reflects the Gillard Labor government's commitment to improving the efficiency, competition, transparency and governance arrangements for the superannuation industry.

The bill amends the Superannuation Industry (Supervision) Act 1993 to provide that trustees are able to apply to the Australian Prudential Regulation Authority for authorisation to offer a MySuper product. The bill passed the House on 22 August 2012 and the Senate passed this bill on 22 November 2012, after making some technical amendments to the commencement provisions.

When the bill passed the House it provided that the provisions allowing funds to apply for authorisation for a MySuper product would commence on 1 January 2013, unless an earlier day was fixed by proclamation. In other words, the bill allowed applications to offer a MySuper product to commence from no later than 1 January 2013. However, key requirements for an application to offer a MySuper product are contained in the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012. Applications to offer a MySuper product should not commence until that bill has passed. Therefore, the amendments agreed to by the Senate are important as they change the day on which the bill commences to a single day fixed by proclamation, which will ensure that applications for a MySuper product will not commence until those key requirements of a MySuper application in the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012 have also come into effect. I commend the bill to the House.

Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

One of my favourite movies is The Hunt for Red October. There is a great scene at the end of the movie—and Dr Jensen would appreciate it, given his understanding of military issues—in which the Soviets have lost a new class of submarine, which is what The Hunt for Red October is all about. In the scene at the end of the movie the Soviet ambassador goes to the office of the Secretary of Defense, I think it was, and says, 'Mr Secretary, we have lost another submarine.' The Secretary of Defense says, 'Mr Ambassador, are you telling me we have lost another submarine?' and so the conversation goes. Well, here we have another amendment by the government to its own legislation. It is like The Hunt for Red October; it is the search for yet another mistake by the old Soviet Empire—not much different from the current equivalent we have on the Treasury benches today.

The government said that the commencement provisions within the bill state that it will start no later than 1 January 2013, but now they are changing it again; and when the bill becomes an act it will be on the day of proclamation. This is all pretty embarrassing for the government, but it is no surprise really.

I am a little disappointed in the performance of the Minister for Financial Services and Superannuation. It is not the first time we have had trouble with commencement dates, as we did with FOFA. Now we know that the Minister for Financial Services and Superannuation has failed to track his own legislation. He is now creating last-minute amendments in the Senate to a bill that relies on the passage of a bill currently before the House. All of this is to prevent industry from having to rely, for its guidance, on the passage of legislation that is yet to go through this hung parliament. So this is another example of the shambolic nature of the passage of legislation through this place.

I am glad the parliamentary secretary is at the table. He has just put out a media release in relation to unclaimed money. The Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012 was a bill which, according to him, was absolutely urgent—which had to be rushed through the House of Representatives on the Thursday of the last sitting. On the floor of this House, members clearly illustrated their discomfort with rushing it through. But now the parliamentary secretary has said that the government are making a huge number of changes to the unclaimed money and other measures bill and that they are going to try and ram those changes through. So you can see that the government are a shambolic mess when it comes to legislation. They are constantly amending their own legislation in the House of Representatives and in the Senate. They state to the Australian people that certain legislation must be dealt with urgently and then we find, as a result of the most cursory consideration of a bill before the chamber, that the government have to make further amendments simply to tread water in the passage of their legislation. In relation to the unclaimed money and other measures bill, we will look very closely at the proposed amendments and we will reserve our position.

On this one, however, we are going to save the minister from himself. He tries hard, the Minister for Financial Services and Superannuation. He really does put in a sterling effort. He gives it his all. He does not quite cut the mustard, but we in the coalition are feeling exceedingly generous today. We try to help this minister through all of these problems. We know that he does not understand.

Bill Shorten (Maribyrnong, Australian Labor Party, Minister for Financial Services and Superannuation) Share this | Link to this | Hansard source

That is very generous of you. I will try to improve.

Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

I see it as to our advantage to make him look good at the moment. I am on the 'Bill for leader' campaign and I am trying to do my level best to try to help him look a little bit better. So the coalition is not going to oppose this. No matter how flawed it may be, we think we can live with a change to the commencement date in order to help this minister through yet another bungle which is going to have an impact on Australian business.

Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

I thank the member for North Sydney. I call—

Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

It is he who should be thanking me.

Bill Shorten (Maribyrnong, Australian Labor Party, Minister for Financial Services and Superannuation) Share this | Link to this | Hansard source

I thank the member for North Sydney for getting up this morning, I thank him for being here and I thank him for the efforts he makes on his side. The reason we are putting this amendment forward is because we continue to consult with industry—

Bob Katter (Kennedy, Independent) Share this | Link to this | Hansard source

Would the member for North Sydney describe himself as a kind and generous person?

Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

Yes, I would.

Bill Shorten (Maribyrnong, Australian Labor Party, Minister for Financial Services and Superannuation) Share this | Link to this | Hansard source

I will return to the bill. I am sorry to interrupt the—

Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

On a point of order, Mr Deputy Speaker—

Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

Please do not abuse it.

Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

I thought the member for Kennedy was very fair and I wanted to make sure his comment was properly recorded in Hansard.

Bill Shorten (Maribyrnong, Australian Labor Party, Minister for Financial Services and Superannuation) Share this | Link to this | Hansard source

The government is committed to reforming superannuation and we continue to do that. The member for North Sydney, in speaking against the amendment, has challenged the government's bona fides in superannuation. Thank goodness Labor are in government in Australia, because we are the ones lifting superannuation from nine per cent to 12 per cent. Thank goodness Labor are in government, because we are the ones reforming financial planning laws so that people can have greater confidence in the advice they are getting. Thank goodness Labor are in government, because we are the ones who abolished the discrimination against people over 70 who are employees—they will be able to get superannuation. Thank goodness Labor are in government, because we are the ones abolishing the tax on superannuation contributions made by people who earn less than $37,000 a year. This last issue falls into the coalition's Bermuda Triangle of policy, where ideas mysteriously disappear into the opposition's policy think tank—if that is not a tautology. What is the opposition's policy on abolishing the 15 per cent tax paid by people who earn less than $37,000 a year?

Perhaps it is the member for North Sydney's personal philosophy not to always be mindlessly negative, given that they are not opposing this amendment. Perhaps we do see the hand of Hockey here—the hand of North Sydney—cooperating on policies which make sense, which this one does. We will continue to negotiate with industry, we will continue to negotiate with the opposition and we will continue to make our superannuation system the envy of the world.

Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

The question is that the amendments be agreed to.

Question agreed to.