Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Hansard source

I thank Senator Singh for her first question—on superannuation, of all issues. This week is the 20th anniversary of the announcement of the introduction of compulsory nine per cent super­annuation. We on the Labor side are very proud of the implementation of this policy. It has led to the creation of a savings pool of some $1.3 trillion, which is particularly important in these uncertain economic times. It is also particularly important for the stability in investment and savings that it provides to our economy. Of course, there were many critics 20 years ago. In fact we hear the same sorts of criticisms today of the mining tax and the carbon tax that we heard of the superannuation guarantee all those years ago. In 1985 Mr Downer said about compulsory superannuation:

It casts aside the Government's concern that it once said it had for the business community and the capacity of the business community to create wealth in the economy … this whole superannuation deal is one of the most underrated threats to the future stability of Australia's economy, and indeed to the capitalist system … This is a dramatic leap towards the objective of socialism…

That is what we heard from those opposite and they have not changed their view. They have the same dire warnings on the impact of the mining tax and the same dire warnings on the impact of the carbon tax. Of course, in time they will also be proven to be untrue. Indeed, those measures will strengthen the Australian economy, just like compulsory superannuation has done for this country. We propose to go further with superannuation. We propose to cut the contributions tax— (Time expired)