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

Thank you, Senator Urquhart, for your question. It is a very important issue, Australia's superannuation. The Gillard government is delivering on the promises it took to the last election and delivering better superannuation reforms and stronger superannuation reforms. My colleague the minister for superannuation, Mr Shorten, has announced the key elements of the Stronger Super reforms. They include creating a MySuper product, which is simple, low-cost default superannuation without commissions. The regulators will be given stronger tools to improve their oversight of our superannuation system and there will be improvements in the administration and the management of super accounts through what is known as SuperStream, which will use technologies to reduce costs and improve efficiencies.

What do these reforms mean for members? It is estimated that the reforms could reduce the fees paid by members by up to 40 per cent, a very significant saving in fees if you compound those savings over the long term. I will give you an example: a 30-year-old worker on a full-time average wage can expect to save up to $40,000 more in retirement after these reforms are implemented. As I have said, there will be commission-free superannuation for the first time. That is a very important reform.

These reforms come on top of other reforms that we have announced. We have announced the increase in the superannuation guarantee from nine to 12 per cent. We have also announced the effective abolition of the 15 per cent contributions tax on the savings of some 3½ million Australians. These particular savings will result in an increase in a member's superannuation balance on average of $110,000. So with these two sets of reforms we have savings of $110,000 and $40,000 over the long term. (Time expired)