George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

My question is to the Minister for Finance and Deregulation and the Minister representing the Minister for Financial Services and Superannuation. Will the minister rule out making any changes to the taxation treatment of superannuation funds or superannuation income which would disadvantage superannuants and self-funded retirees?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I apologise—I may not be quite as loud as I usually am, which is probably something Senator Brandis will be very happy about. Through you, Mr President, I thank Senator Brandis for the question. I am not surprised that Senator Cormann does not want to ask this question.

Mitch Fifield (Victoria, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

He's feeling neglected.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I am sure he is not feeling neglected. As the senator knows there is always, in the lead-up to budget updates, speculation about matters that government might or might not be considering. A lot of that speculation is not correct. As was the case under Mr Costello and as remains the case under us, the government is not going to—

Senator Abetz interjecting—

I will take the interjection from Senator Abetz that Mr Costello has become a precedent. Let me tell you, Mr President, the only party in this chamber that is saying, 'We will comply with Peter Costello's Charter of Budget Honesty' is the Labor Party. The only party which will comply with Peter Costello's Charter of Budget Honesty is the Labor Party. I wait for the modest members, those Costello acolytes and all of those who think fiscal credibility is so important, to stand on their feet and say that I am misrepresenting them—that they too will ensure that they comply with the Charter of Budget Honesty that Peter Costello introduced.

When it comes to super I would make this point: we are the party of superannuation. We built occupational superannuation against the opposition of those opposite. If anybody ever wants to see the credibility—or lack thereof—of the Liberal Party when it comes to super, go and have a look at the debates when the SGC was first introduced and see how bitterly and vehemently they opposed it. (Time expired)

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given that the minister has conspicuously failed to rule out any changes to the taxation treatment of superannuation funds and superannuation incomes which would disadvantage superannuants and self-funded retirees, is it the case that Australia's superannuants and self-funded retirees are going to be paying the price for this government's $120 billion budget black hole?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

Oh dear, Mr President. I note that Senator Brandis is not on the shadow ERC, and so he would not understand a couple of things. One is that you do not budget over 10 years; second, if you are going to budget the spend you probably should budget the saves as well—which I am sure he will not do. If he is worried about black holes he should have a chat to his mate Senator Cormann about the fact that the coalition have made very clear that they are going to cut services. They are going to cut services to Australians to fill the $70 billion black hole that they themselves have admitted to. This is not my figure; this is Mr Robb's figure and it is Mr Hockey's figure. If Senator Abetz cannot recall the shadow Treasurer and the shadow finance minister actually referring to that figure, I am very happy to come in here and table the transcripts of the interviews in which they did so.

When it comes to superannuation I would remind those opposite of this: we are the ones, on this side of the chamber— (Time expired)

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Is the minister aware of reports that the government is currently considering cutting tax concessions for self-managed superannuation funds and raiding $1.4 billion from retirement savings? Are those reports true?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I refer to my answer to the primary question, because it was the same question, but I would also remind the chamber of this in response: we on this side are increasing the superannuation guarantee from nine to 12 per cent. Who voted against that? Those opposite. We on this side have reduced taxes on low-income earners—the one in three who earn under $37,000—

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. The answer is not directly relevant to the question. In both the primary question and the two supplementary questions I have asked specifically about the taxation treatment of superannuation funds and superannuation income. On three occasions I have given the minister the opportunity to rule out the changes that it has been suggested the government intends to the taxation treatment of superannuation funds and superannuation income. The question is about the taxation of superannuation and on the third go it is time for you, with respect, Mr President, to ask the minister to direct herself to the question asked.

Jacinta Collins (Victoria, Australian Labor Party, Parliamentary Secretary for School Education and Workplace Relations) Share this | Link to this | Hansard source

Mr President, on the point of order: the question I heard was much broader than just the tax treatment. He was talking about superannuation changes, and the minister has been addressing the question.

John Hogg (President) Share this | Link to this | Hansard source

I believe the minister is answering the question and the minister has 39 seconds remaining.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

As I was saying, if we want to talk about tax treatment of superannuation, those opposite have voted against the tax break for low-income workers when it comes to super. You voted against it, so do not come in here and say you care about superannuation when you know you have opposed the tax cut for those in Australia earning under $37,000 a year. On this you are completely hypocritical.

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

It has nothing to do with tax.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

Senator, it has everything to do with tax because you are the ones who voted against this tax break. You voted against this tax break on super for low-income workers in Australia. Everybody knows what your priorities are.