Luke Howarth (Petrie, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Revenue and Financial Services. Will the minister please update the House on the importance of providing economic flexibility for all Australians in retirement? Is the minister aware of any alternative approaches?

Kelly O'Dwyer (Higgins, Liberal Party, Minister for Revenue and Financial Services) Share this | Link to this | Hansard source

I thank the member for Petrie for his question. Like the member for Petrie, the government recognises how important it is for people to have flexibility to be able to choose how they save for their retirement. We on this side of the chamber recognise it is, after all, their money, and they should be able to decide where they put it.

Ms Husar interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The Minister for Revenue and Financial Services will resume her seat for a second. I refer members to my earlier remarks, particularly about members who have been warned. The member for Lindsay will leave under 94(a).

The member for Lindsay then left the chamber.

Kelly O'Dwyer (Higgins, Liberal Party, Minister for Revenue and Financial Services) Share this | Link to this | Hansard source

I know it upsets them to remind them that it is, in fact, members money and they should be able to choose how, in fact, they save for that money and how they ultimately spend it. The government believes it's important to have flexibility in superannuation. Right now, we have legislation before the Senate that will allow around one million Australians the freedom to choose where to direct their superannuation contributions. It will allow people, regardless of an enterprise bargaining agreement or a workplace determination, to make an active choice as to where they put their money. It probably won't shock you to learn that this is bitterly opposed by the CFMEU, the ACTU, the Industry Super Funds and, of course, the Labor Party who want to restrict that choice, presumably so they can continue to see the kickback arrangements that currently occur where union officials are paid money as superannuation liaison officers. But their contempt for people making choices about their own money and their own savings does not stop there.

The shadow Treasurer has done away with all pretence, and he has made it clear that their retiree tax 2.0 is a policy that is designed to crush self-managed superannuation funds. That's right. Their retirement tax 2.0 will not only hit those people with low incomes—85 per cent of whom have a taxable income of less than $37,000—not only will it bring back double taxation, it is designed to make SMSFs less competitive. We learn that 350,000 members across 190,000 SMSFs will lose the ability to have their own taxes refunded to them as a result of Labor's latest tax grab. Based on Labor's own material, it appears that any pensioner who chooses to set up an SMSF from Thursday this week will also be hit. Their so-called 'pensioner guarantee' is good for less than 48 hours. Why is it that they want to hit people in SMSFs? After all, the ATO figures show the median SMSF balance per member is a touch over $360,000. They are hardly the millionaires that those opposite claim, and that the Leader of the Opposition would have you believe. We've heard that Mr Bowen has said that their measure is well targeted. Well, it is a well-targeted strike against SMSFs. (Time expired)

Tony Smith (Speaker) Share this | Link to this | Hansard source

I remind the minister to refer to members by their correct titles.