Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

Indeed, the Labor government’s introduction of the nine per cent compulsory superannuation payment has made some contribution to this great outcome. We are a generous government; we give credit where it is due. We also attribute blame where it is due. Also, the value of assets under management has risen because of changes in asset values, because of the extraordinary growth in the Australian Stock Exchange, which is a function of the strong economy, for which I think we can take credit, and because of unprecedented corporate profitability. We have assisted this growth in funds under management by bringing in the super co-contribution arrangements and by abolishing the superannuation tax surcharge. We are encouraging savings through superannuation now by abolishing the tax on retirement benefits, which in addition to cutting the tax burden will massively simplify the current complex arrangements. Very significantly, the federal government will be directly adding to the stock of funds under management with the first $18 billion now transferred into our Future Fund to be complemented by further deposits from future surpluses and asset sales. So the prospects for what is now a truly great Australian industry—the managed funds industry—are very bright.

I was asked about alternative views, and I remind the Senate that, although the Labor Party can take credit for the nine per cent compulsory super levy, the Labor Party went to the last election promising that, if they were now in government, they would by now have scrapped the co-contribution arrangements and restored the super surcharge. They also had a policy of raiding the Future Fund to spend on their pet projects. Just yesterday we saw the CFMEU promoting a plan to raid the Future Fund and team up with other funds to pour money into projects of one kind or another. We are not surprised, of course, that the CFMEU and the Labor Party have a similar view on this. We saw 10 days ago just how close the Labor Party and the union movement really are, but it is outrageous and irresponsible for both the Labor Party and the CFMEU to put forward policies that involve raiding the Future Fund, which will obviously compromise its ability to achieve commercial returns and reinvest them so as to grow and meet this massive unfunded superannuation liability which this country still faces. With $1 trillion under management, there is clearly plenty of capacity in the Australian economy to fund infrastructure without the CFMEU and the Labor Party raiding the Future Fund. That is a dreadful policy and one that we will resist and oppose right through to the next election.