Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The bill that I introduce today will enshrine an objective of superannuation in legislation, and I acknowledge the presence of the Assistant Treasurer and also Assistant Minister Leigh in the parliament this morning as we move this important legislation. I thank them for all the work that they do in these important areas.

This legislation defines the objective as: to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.

This simple and straightforward objective will serve as a guide for future governments, regulators, industry, and the wider community—instilling greater confidence in the system.

Australia has a world-class superannuation system that is the envy of countries right across the globe.

But for the last 10 years or so super policy has been costly, confused and chaotic.

Those opposite raided the superannuation system for their own purposes with a devastating impact on the retirement savings of millions of Australians.

Around $36 billion in savings that were meant to last a lifetime were drained out of super accounts in a matter of months.

Legislating an objective of super will help prevent this sort of short-sightedness ever happening again, making sure the focus of super is on the best interests of members, and not on those interested in ideological battles.

The objective will help ensure super delivers on its foundational promise of providing a dignified retirement for more Australians.

It will secure super's future by embedding its purpose into law.

This will ensure that any future changes to the superannuation system will support its objective, not supplant or undermine it.

The bill does this by requiring ministers to produce a statement to parliament explaining how any proposed changes to super are compatible with its legislated purpose. Policymakers will be held to account when considering changes that affect Australians' retirement savings.

The objective will not alter superannuation trustees' existing obligations.

Super funds will continue to be required to make investment decisions in the best financial interests of their members.

This legislation also doesn't change the ability of members to get early access to their super on compassionate grounds or in cases of genuine financial hardship.

For trustees, the objective will serve as a reminder of their role to support members during their working life and into retirement.

And with more Australians approaching retirement age than at any time in our history, delivering better retirement incomes has never been more important.

This bill is an important next step towards a stronger super system for a stronger economy and it has been met with strong industry support, and I want to thank the industry for their engagement.

We know that superannuation is a significant source of capital: it contributes to the strength of our financial markets and there are opportunities to leverage superannuation investment in areas of national economic priority where it aligns with the best financial interests of members.

Having a clear, legislated objective of super will help ensure these broader benefits of super can be maximised.

This will be a defining decade for our nation, and that demands defining the role of superannuation—to protect the gains that have been made and to pursue its greater potential as well.

We are very proud, as Labor people, that we built super. We will protect it and make it the best it can be to ensure that it continues to deliver dignity in retirement for generations of Australians to come.

Full details are contained in the explanatory memorandum.

Debate adjourned.