David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance and Minister representing the Treasurer, Senator Cormann. Can the minister advise the Senate what the government is doing to reverse the former Labor government's disgraceful raid on the savings accounts of everyday Australians?

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

I thank Senator Bushby for that question. I also thank Senator Williams, who has shown a lot of interest in this particular policy issue. Back in 2012, the now Leader of the Opposition, Mr Shorten, as the minister for financial services at the time, was responsible for what was arguably the greatest Australian bank robbery of all times. Today this government is reversing the disastrous, outrageous attack on people's bank accounts that was imposed on them by none other than Mr Shorten. Remember, this was a pre-Christmas raid on people's bank accounts back in 2012. Who was there at the scene of the crime? It was none other than the former finance minister—

Senator Wong interjecting—

Senator Wong—the first finance minister in the history of the Commonwealth to do that. Here they were: they had promised a surplus in 2012-13. Remember that? In fact, some of them said they had already delivered the surplus. And here they were, before Christmas, worried it was not going to happen. So let's come up with some smoke and mirrors. Let's come up with some cash flow tricks. Let's go after people's bank accounts in order to try and make it look like we have got a surplus. So they said, 'We've got to have a $1.1 billion surplus.' Where did half of it come from? Other people's bank accounts. Unbelievable! I still remember sitting in my office in Perth, looking at the television, watching Senator Wong at the scene of the crime, watching the then Treasurer, Mr Swan, and watching Mr Shorten, the now Leader of the Opposition, as they were putting their hands into people's bank accounts—right into people's bank accounts. It was Mr Swan's Christmas. Here they were with $550 million in one year. They knew it was not the government's money. (Time expired)

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Will the minister advise the Senate how the previous approach hurt Australians and penalised people who saved for their future.

Opposition Senators:

Opposition senators interjecting—

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

That is a very important question. I see that people on the Labor side are laughing about the inconvenience they caused people across Australia, because they imposed on people across Australia. The Labor government went after money that they knew was not theirs. They went after money that they knew they would have to pay back. They went after money which they knew people would be forced to claim back through ASIC. In fact, that generated an industry of businesspeople who are now charging people 25 per cent commissions on money which is their money, out of their own bank accounts, in order get their own money back. Of course, 156,000 bank accounts worth around $550 million were raided. That money is not our money. It is not the government's money. It is people's own money. It has serious consequences in terms of imposing costs and inconvenience on people across Australia essentially to try and create the false impression that the government had more money than it actually did. (Time expired)

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister give examples of how the previous government scheme harmed people.

Senator Cameron interjecting—

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

This is where Senator Cameron should listen, because, as I said yesterday, if we don't learn from history we are condemned to repeat it. The rules Mr Shorten wrote had harsh and unfair consequences. Community groups trying to access emergency accounts were slowed down by up to six months. A farmer was unable to sow his crop after years of drought because money in an emergency account, literally for a rainy day, was not available to him. It had been seized by the Labor government. There are farmers around Australia who, when they are experiencing drought, who are waiting for a rainy day, do have cash in a bank account which they might not touch for two or three years—and in comes Bill Shorten, who puts his hand in their pockets. A mother and son were unable to visit a dying relative overseas because they could not get access to a bank account which Labor had seized. These are real live examples— (Time expired)

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I raise a point of clarification. Am I allowed to move an extension of time for the minister to answer the question?

Stephen Parry (President) Share this | Link to this | Hansard source

You can do anything by leave, Senator Williams. I do not think leave will be granted—but I cannot pre-empt the Senate.