Trish Crossin (NT, Australian Labor Party) Share this | Link to this | Hansard source

My question is to Senator Sherry, the Minister representing the Assistant Treasurer and Minister for Financial Services and Superannuation. Can the minister outline to the Senate how many Australians in each state and territory will benefit from the government's reforms to superannuation—in particular from the tax concessions for low-income workers—to be funded by revenue from the minerals resource rent tax? How will the government's use of the proceeds of the minerals resource rent tax deliver the benefits of the mining boom to Australian superannuation fund members and improve the superannuation outcomes of, in particular, female workers?

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

Thank you for your question. As I have mentioned, this government is very proud to present to the Australian parliament a minerals resource rent tax, which will raise approximately $11 billion. All of this money will be used in a number of ways, but particularly in superannuation tax cuts, to help pay for the increase in the superannuation guarantee and to provide tax cuts for small business. It will be used for a range of other measures as well. In the context of superannuation, as I have mentioned, and as we now know, the Liberal opposition for the first time ever has done a backflip and will support the increase in the superannuation guarantee.

There are three other measures in this package which is funded by the mining tax. The measure that I particularly want to draw to the Senate's attention is the current taxation arrangements for superannuation. There is a 15 per cent contributions tax that applies to all Australians contributions, regardless of their income level. This is particularly unfair for low-income and low-middle-income earners, who either pay 15c in the dollar on their income tax or, in some cases, pay no effective tax on income tax but pay a 15 per cent contributions tax. The government has announced as part of this package that is funded by the mining tax that it will rebate the contributions tax on superannuation for low-income and low-middle-income earners with salaries up to $37,000.

This is a very important equity measure. It will benefit some 3.6 million Australian workers who contribute to superannuation, of whom 2.1 million are females. It is paid for by the mining tax. In fact, this measure effectively removing the contributions tax from low-income earners' superannuation will effectively cost more than increasing— (Time expired)

Trish Crossin (NT, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Would the minister please outline what calculation the government has used to define what a comfortable retirement is for Australia's superannuation fund members?

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

There are a range of measures and advice from actuaries—for example, the recently published Melbourne Mercer Global Pension Index. This measure of effectively removing the contributions tax from some 3.6 million low-income earners will benefit, for example, over a million low-income Australians in New South Wales and some 93,000 Australians in my home state of Tasmania. There are a range of other figures. The opposition, at a somewhat shambolic and well-leaked leadership group last Friday, have agreed to support the superannuation guarantee. But will they support and maintain the tax cut on 3.6 million low-income earners' superannuation? Will they support that important part of— (Time expired)

Trish Crossin (NT, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Is the minister aware of any alternative policies and do these alternative policies pose obstacles or risks to the Gillard government's historic reforms of the superannuation system?

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

(Tasmania—) (): The particular measure that I have been outlining, which is effectively a tax cut—a very substantial tax cut—for 3.6 million low-income Australians, will cost $830 million, so it is a substantial cost to the budget and is funded by the mining tax. Where do the Liberal opposition stand on this measure? They have agreed to support the increase in the super guarantee but they have not agreed to support the tax cut for 3.6 million low-income-earning Australians. If by chance they decide to support this tax cut, they have one problem: they have no money to pay for it, because they have committed to reverse the mining tax. How will they pay for this particular measure? Or are they going to go to the next election arguing for a tax increase on 3.6 million Australians' superannuation? (Time expired)

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.