Anne Urquhart (Tasmania, Australian Labor Party) Share this | Hansard source

I rise to take note of the answers to questions without notice today on this Labor government's superannuation reforms. It is fantastic that those opposite have actually raised superannuation as it is one of Labor's greatest achievements, but it is an achievement that those opposite only ever want to talk down. As Senator Conroy said earlier in the chamber, we are the champions of superannuation. Those opposite seek to create fear in the community about the superannuation system, a system that they see simply as a burden on business. In fact, it was this vital reform that was implemented in the 1990s that enabled working Australians to have enough money to enjoy a decent retirement, and, as our population gets older, ensuring a fair and proper superannuation system is vital.

That is why this government has implemented a range of reforms to the superannuation system over the past five years. At the centre of these is a commitment to increase the guarantee from nine per cent to 12 per cent over the coming years. Given life expectancy is increasing and retirement is more an experience of decades rather than a few years, as it used to be, we all know that nine per cent superannuation is simply not enough now. This is especially the case for women who have child-raising breaks in their career and have a longer life expectancy than men.

In the early 1990s the very idea of compulsory superannuation was denounced by the opposition and the business lobby as a 'company killer'. They said that unemployment would rise and that the economy would be damaged—all wrong of course. In fact, during those years nine per cent superannuation was introduced, unemployment fell, productivity was higher and more small businesses were started. We now see that further increases to this base guarantee are needed

This will be staggered in over the coming years in small increments that enable businesses to prepare for these increases. One reform from the past few years that I am particularly proud of is Labor's low-income security superannuation contribution. This measure, valued at $1 billion a year, gives each Australian worker who earns up to $37,000 a contribution from the government of up to $500. This benefits 3.6 million Australian workers, of whom 2.1 million are women and many of whom are working part-time. This reform provides a much needed boost to the retirement savings of Australia's lowest paid. And what would those opposite do with this reform? Well, of course they would scrap it, throwing over 3½ million Australians on to the scrap heap. On one hand, we have Labor seeking to make Australia a fairer place by seeking to ensure that Australians have decent retirement savings, and those opposite are more concerned about the big end of town.

We also have our MySuper reforms which we have been moving through this place over the last number of years. These reforms are seeking to make superannuation simpler and fairer for all Australians. MySuper is a new low-cost superannuation product that replaces existing default funds. It will begin to be offered from 1 July this year. Importantly, MySuper has new features that existing default funds do not have such as standardised disclosure of costs, fees, risks and returns, making comparisons easier; a ban on the payment of sales commissions and entry fees; and new standards for the payment of performance fees to fund managers. We have introduced this reform because superannuation funds do not send monthly bills. It does not mean that superannuation funds are not a significant family bill, just like any other. Every dollar that is saved in superannuation fees directly boosts their retirement savings, helping them to enjoy a comfortable retirement.

MySuper will save millions of Australians hundreds of dollars a year in fees by making it easier to compare funds to get the best value; by banning certain fees, such as entry fees and sales commissions; and by increasing the duties on superannuation trustees to make sure that they operate cost effectively. Together, these will exert downward pressure on fees and charges that, over a lifetime, will see an average Australian worker over $40,000 better off. Considering how much an average Australian needs per year to live on in retirement, $40,000 will go a long way to making the retirement of millions of Australians more comfortable.

Labor is incredibly proud of this nation's superannuation system. It is our desire to continually seek to improve it for the benefit of all working Australians. It is something that over the last 30-odd years, Labor has been proud to introduce to Australian workers.