Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

It is funded by the government, Senator Abetz, because it is a cost to budget. You do not understand tax, Senator Abetz, through you, Mr President. In estimates, from which you were absent for most of the period, the evidence given was that the cost to government of the superannuation guarantee will be about $3.6 billion. That is the cost to revenue as a consequence of the superannuation guarantee change, so there is a cost to government and that is what in part the resource super profits tax is to fund.

It will also fund a tax cut on superannuation for 3½ million low-income earners. Low-income earners at the moment pay a contributions tax of 15 per cent; many do not pay any effective income tax. So we are going to cut the tax for 3½ million low-income earners. We are extending the $50,000 superannuation contribution cap for those with a balance below half a million dollars who are over 50. Also, we will be ensuring that older workers currently in the workforce over the age of 70 and up to the age of 75, for the first time, will receive superannuation. At the present time, it is not a requirement that they receive superannuation. Thirty-three thousand employees will benefit. (Time expired)