Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Prime Minister. Why is the Prime Minister so determined to make Australians work longer and receive less from the age pension at the same time as making it harder to save for their retirement?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I will get to the question that has been asked by the shadow Treasurer, but I would like to begin by acknowledging the gracious words of the Leader of the Opposition a few moments ago. I know the phrase has been criticised but let me use it again—team Australia. We have worked very effectively as a parliament and as a nation to do what we can to help people in the most difficult circumstances imaginable—and that work will go on.

What the government is attempting to do with the budget is ensure that our economy is strong for the future. Yes, it was a tough budget—there is no doubt about that—but it was a necessarily tough budget to address the debt and deficit disaster that we inherited, to ensure that over time there was less spending on short-term consumption and more spending on long-term investment so that we could build our economy for a safe and secure future for our country.

Yes, over time we do want the pension age to increase. Just as the former government raised the pension age, with the support of the then opposition, from 65 to 67, we are proposing to raise the pension age from 67 to 70 by 2035. Let's never forget that, when 65 was proposed as the pension age 100 years ago, the average life expectancy of Australians was 58. Today the average life expectancy of Australians is over 80. A healthy life expectancy has increased even more. That is why we think it is important to increase the pension age appropriately and reasonably over time, building on the work that the former government did.

We all know that, without change, the ratio of working Australians to pension age Australians will decline from five to one now to three to one by 2050. Thanks to the changes that the government is proposing to put in place, it will remain at four to one. This is important if our social security and social service system is to be sustainable over time. As for the superannuation system, we propose to raise the superannuation guarantee levy to 12 per cent.

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

When?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

By 2025—well in time to deal with the increase in the pension age that we are also proposing.

Rick Wilson (O'Connor, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer outline how abolishing Labor's mining tax will assist to repair the budget and grow the economy?

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

I thank the honourable member for the question. I can now advise the House, all members, that the Senate has just repealed the mining tax. The mining tax is now gone. It is testament to a failed Labor government, failed economic policy, failed taxation policy and a failed Treasurer.

The fact is that we promised we would set about fixing the economy and fixing the budget, and that is exactly what we are doing. We are getting on with the job. When we first came to government—

Honourable Members:

Honourable members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

We will have silence on both sides, thank you.

Mr Perrett interjecting—

The member for Moreton can remove himself under 94(a).

The member for Moreton then left the chamber.

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

When we first came to government we identified 93 announced but unlegislated taxation changes which occurred under Labor and previous governments. We got on with the job of clearing the decks. We promised the Australian people that we would in our budget collect less tax than would have been collected under Labor if they were re-elected. We delivered in full. We said that we would get rid of the carbon tax—and we delivered in full. We said that we would get rid of the mining tax—and we have delivered in full. We said that we would get on with a financial system inquiry, and we have done that. We said that we would get on with a competition inquiry, and we have done that. We said that we would have a commission of audit, and we did that. We said that we would build infrastructure for the 21st century, and we are doing that.

Mr Shorten interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The Leader of the Opposition will desist.

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

We are building the equivalent of eight Snowy Mountain schemes in additional infrastructure over the next eight years. The Labor Party are opposing that because they are in denial.

Mr Brendan O'Connor interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Gorton is warned.

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

The Labor Party is in denial. The Labor Party still believes in a 1980's Australia. The problem is that a 1980's Australia cannot compete with the rest of the world in the 21st century.

Mr Champion interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Wakefield can remove himself under 94(a).

The member for Wakefield then left the chamber.

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

We are building a 21st century economy, despite the opposition of Labor. Be sure of this: what hurts Labor the most out of the decision on the mining tax today is that it shows how irrelevant the modern Labor Party are. The Labor Party did not want to deal with the deficit and the debt limit that they created and they were dealt out. They did not want to deal on FoFA and they were dealt out. They did not want to deal on the carbon tax and they were dealt out. They did not want to deal on the mining tax and they were dealt out. The modern Labor Party are irrelevant. The only reason the Palmer United Party are relevant in these discussions is that the Labor Party and the Greens are voting for them. That is the only reason. And you know what? The only way the Labor Party will ever be relevant is if they start to believe in something—but don’t hold your breath.

Bernie Ripoll (Oxley, Australian Labor Party, Shadow Minister Assisting the Leader for Small Business) Share this | Link to this | Hansard source

My question is to the Prime Minister. Because of the government's changes to the superannuation guarantee, a 25-year-old Australian earning $55,000 a year will be over $9,000 worse off by 2025. Prime Minister, why should every Australian with superannuation pay for your broken promise?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The best thing that we can do for all Australians, including the Australian the honourable member asked me about, is build a stronger economy. If we want a stronger economy, we have to have a stronger budget and that is exactly what we will have as a result of the changes which have passed through the Senate today—no thanks to the Labor Party, which has dealt itself out of responsible government in this country—thanks to the crossbench senators; I do acknowledge the help they have provided to the government in this respect.

We are determined to build a good and decent retirement income system. We are determined to have a strong and decent social safety net and that is exactly what will happen as a result of the changes that have passed through the Senate today, and it will be sustainable.

Members opposite are waxing indignant about changes to superannuation. Let me remind them what happened when they were in charge. During Labor's time in office, there were increased taxes on superannuation of almost $9 billion including cutting super benefits for lower-income earners by more than $3.3 billion.

This is a government which is doing the right thing by the people of Australia because the right thing by the people of Australia is to build the strongest possible economy.

Rowan Ramsey (Grey, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Would the Treasurer outline how getting rid of the mining tax will boost competitiveness and help create jobs in South Australia and elsewhere?

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

I thank the honourable member for Grey for his question. We have from the very beginning opposed the mining tax and now we have delivered on getting rid of it. And that is all because the mining tax cost jobs. There is no doubt about that. It had an impact on investment, it had an impact on jobs. There are 3,800 jobs in mining in the member for Grey's electorate but there are hundreds of thousands of other jobs around Australia that rely heavily on the mining industry, and the mining industry did some heavy lifting for Australia over the last few years. But there is no doubt in my mind, no doubt in the mind of the coalition and no doubt in the minds of anyone involved in business that the mining tax was a handbrake on further investment in mining.

Andrew Mackenzie, the CEO of BHP Billiton said:

What I would say to the Senate is, ‘you are destroying huge amounts of potential inward investment that ultimately will pay a lot more tax in a much more stable way … if you do not get rid of the mining tax

Well, they have got rid of the mining tax. Sam Walsh, The chief executive of Rio Tinto said:

We need a measure of certainty in terms of the investments we make … Australia needs to recognise stability and security are exactly what we are seeking.

The coalition is delivering that stability. The coalition is delivering that security because we got rid of the carbon tax and we got rid of the mining tax. That is all about delivering on what we promised. And as we build momentum in this economy—momentum that was actually praised by Stephen Koukoulis today, the chosen economist of the Labor Party and former economic adviser to Julia Gillard. He praised the fact that expectations are in some cases at an 11-year highs.

Pat Conroy (Charlton, Australian Labor Party) Share this | Link to this | Hansard source

Only because you were sick yesterday!

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Charlton will remove himself under 94(a).

The member for Charlton then left the chamber.

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

It was just one day, mate, unlike you. I have not got a permanent ailment. The bottom line that we are delivering for Australia is a stronger and more prosperous economy. That is what we promised the Australian people and it comes on the back of all the other economic decisions we have made, from fixing the taxation system to delivering a stronger budget. By getting rid of the debt limit, we are focusing on getting rid of the debt. By getting rid of the debt, we are ensuring that Australia starts to live within its means. And we will not saddle Australians with $25,000 of debt for every man, woman and child in 10 years.

But it goes further. We have delivered two free-trade agreements with Korea and Japan. We have got on with the job of making sure that environmental approvals are accelerated. The Minister for the Environment has done just that. The Minister for Industry has got on with the job of helping industry. This is a team effort. We are focused on delivering.

Tanya Plibersek (Sydney, Australian Labor Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Can the Prime Minister advise the House how many more Australians will be reliant on the aged pension if the increase to the superannuation guarantee is frozen for six years?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I want to see more self-reliant Australians. I want to see a more self-reliant country and the best way to do that is to ensure that our economy is as strong as possible. The stronger our economy is, the more sustainable a generous social security system will be and the more sustainable a generous and appropriate retirement income system will be.

So I am very proud of the work that the government, particularly the Treasurer and the finance minister, have done to deliver on our commitment to get rid of the mining tax because the mining tax was possibly the most stupid tax ever devised.

It was a tax that destroyed jobs, it damaged investment and it did not raise a cent— (Time expired)

Tanya Plibersek (Sydney, Australian Labor Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

Speaker, I rise on a point of order.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The Prime Minister has completed his answer.

Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

Without an answer!