Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

I thank Senator Williams for that question. It is of course very important that we make our superannuation system fairer, more flexible and more sustainable. We did take a very comprehensive package of reforms to the last election, designed to ensure that superannuation tax concessions are fairer, more sustainable and fit for purpose. Of course, the purpose of the superannuation tax concessions is to encourage Australians to save, to generate an income in retirement to replace or supplement the age pension.

That was a $6 billion package, and the conversation that has been taking place in recent weeks and months has focused on less than 10 per cent of that package. Five hundred and fifty million dollars was the expected revenue from the introduction of the non-concessional $500,000 lifetime cap. We have listened to the feedback from the community and in particular we have listened to the feedback from our Liberal and National Party members and senators, and we have done after the election what we said we would do before the election: we have consulted on the very substantial package of reform. But I would say to you again: we as a government have made a judgement on flexibly making improvements that make our reforms even better, having taken on board legitimate and genuine feedback. The changes that we are announcing today, that the Leader of the Government in the Senate has gone through for you today, impact on less than 10 per cent of the overall reform package that we announced at budget time.

Let me also say that this question by Senator Williams and the supplementary questions that I expect will be coming will give me the opportunity to dismiss the absolute falsehoods and misleading statements that are at the basis of the questions that we were asked by Senator Gallagher. You do not have to take every question that your tactics committee gives you, Senator Gallagher. That is just my gentle advice to you.