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

Successive Labor governments over a 20-year period have long recognised that compulsory superannuation was very necessary to strengthen our economy and to boost private retirement savings. We held a view that nine per cent was not enough, and we have announced an increase in the superannuation guarantee from nine to 12 per cent, which is to be phased in gradually over six years. The government have always been very clear about how this would be funded: at least part of the funds from the minerals resource rent tax would pay for this and other very important superannuation reforms. I might point out that a 30-year-old will be able to retire with an extra $108,000 in superannuation.

Until about a week ago, the Liberal-National Party was strongly opposed to compulsory superannuation and increasing it. We heard from Senator Cormann and others that compulsory superannuation would wreck the Australian economy, it would decrease real wages and it would harm small business—very similar to arguments they have advanced with respect to the carbon tax. However, they have now changed their minds. As of Friday, the Liberal Party has changed its mind. Increasing compulsory superannuation is no longer going to wreck the Australian economy, it is no longer going to decrease real wages and it is no longer going to ruin small business. They have decided to support Labor's policy to increase compulsory superannuation. However, the Liberal Party have one major problem: they have no way of paying for it, because it is to be paid for by the minerals resource rent tax. The problem the Liberal Party have is—