I rise to support the motion moved by the Treasurer, the honourable member for Rankin. I'm very happy to talk about superannuation. The superannuation guarantee was passed through this House in 1992 by the Keating Labor government. It was introduced because the Keating government, like all Labor governments, was forward thinking, and it was presented with the fact that Australia would experience a major demographic shift in the following decades—an ageing population—and that this would result in increased age pension payments that would place an unaffordable strain on our economy.
The concept of superannuation, or super, as it's called, is pretty simple. The Australian Taxation Office website describes it this way:
Superannuation … is money put aside by your employer over your working life for you to live on when you retire from work.
Super is important for you, because the more you save, the more money you will have for your retirement.
The savings in a person's super account generally cannot be accessed until they reach retirement age, and it helps workers transition from earning a regular wage into retirement. Australia's superannuation system has now become a national treasure that has delivered generations of workers a decent and secure retirement, and millions of Australians are retiring with more wealth than ever before. We now have nearly $4 trillion in funds, working daily to support future retirees.
The success of superannuation cannot be understated. For its reach to millions of Australians, it is perhaps the most significant public policy of the last 30 years. I wonder if the assistant minister might comment on that—someone who understands it a bit more closely than me. Superannuation has been a life changer for workers and a game changer for the nation. Superannuation gives working Australians peace of mind. They can enjoy their well-earned retirement. It also helps give a solid backbone to our pension system. It also aids in promoting economic growth for the Australian economy, with large capital investments giving the economy that strong foundation. Capital promotes growth. Superannuation is a win-win-win. It's good for workers, good for bosses and good for the economy.
Despite this benefit to Australians, those opposite have taken every opportunity to attack and denigrate that great institution of Australian super. They never go and talk to bosses about it. They don't believe in consultation. They believe in dictation. They're little dictators. Their policy development is incredibly simple. They look at what the Labor Party is doing and then just say, 'We're saying no to that.' I cannot imagine any policy from the coalition that has produced such a nation-changing benefit as superannuation. In fact, they've done their best to pillage and destroy the superannuation system at every turn.
One of the first things the Howard government did in 1996 was cancel planned increases in superannuation—all that compound interest thrown away, sacrificed on the altar of Liberal pride and arrogance. At every stage, the coalition has seen fit to attack the ability of Australians to live a happy, dignified retirement.
More recently, during the pandemic, instead of giving good government support, they more or less forced Australians into raiding their future in order to stay afloat—private stimulus delivering public benefit. During the pandemic, the coalition, rather than putting forward strong economic stimulus, allowed Australians to withdraw money from their own super in order to make ends meet. Figures from the Australian Prudential Regulation Authority reveal that workers withdrew more than $36 billion from their retirement savings after being forced to fend for themselves, and way too many people spent it on bull bars, lap bands, back decks, Bali or boob jobs. Now, I'm no financial planner, but not all of those will necessarily deliver a good return on investment.
More than 700,000 workers completely emptied their super accounts, with over 80 per cent of those being under the age of 35. This lack of savings will have huge compounding impacts when it comes to retirement for these people. It will mean that these Australians, who were abandoned by the Morrison government, will be far worse off in the future. They miss out on that magic of compound interest. This unprecedented, short-sighted political attack is a catastrophic blow to the retirement prospects of a whole generation of Australian workers, engineered by a visionless, lazy former coalition government. You can be sure that, if the coalition come for our superannuation once, they will do it again and again. That $4 trillion nest egg is too big a lure. It's like bovine faeces to blowflies. The coalition's premise is that the only way to make sure young Australians can afford a home is by raiding their superannuation. That's their only policy. It's simply unacceptable. To do that would be like squirting lighter fluid on a housing bonfire.
For those opposite to have the gall, after 10 years in power, to give young workers an ultimatum that to live the Australian dream they need to sacrifice their retirement is disgraceful and lacking vision. Shame on them for trying to push workers into a corner and force them to choose between having a home of their own or having superannuation savings. Former prime minister Morrison also tried to start a scare campaign about the war on the weekend, but, under his leadership, a brutal war on the workforce sought to attack the retirement plans for so many Australians, forcing Australians to make that horrible choice between their home and their future. This put some Australians into a mindset of looking at their superannuation—which is being held in trust for them—as if it were actually a second bank account, but it is not. This is a worrying siren song and would see Australians' retirements wrecked.
That's why the Albanese government is acting to ensure superannuation is never treated by a policy-lazy coalition as a public piggy bank. This bill will legislate the objective of superannuation by ensuring that it's a true north for our super system and by making sure that, when those opposite seek to denigrate such an institution, they must explain to the public why they're doing so. This bill provides that the objective of superannuation is to preserve savings to deliver income for a dignified retirement alongside government support in an equitable and sustainable way. This objective will serve as a reminder that achieving better living standards for Australians in retirement is at the heart of our superannuation system.
The bill also enjoys strong industry support and will make for a sustainable, strong relationship between government and superannuation providers. You might recall that there was a bill in this House back in 2016 that attempted to create a set of objectives for the superannuation system. However, it did not encompass a solid set of principles that could be agreed on by all stakeholders. This government has ensured that proper consultation has occurred and that this bill enjoys strong industry support. We do consult. We do the hard yards. As I said, those opposite merely consult the Notice Paper to see what they're opposing today, and then they calibrate how loudly they will whinge in doing so.
This bill will ensure that the responsible ministers will be required to complete a statement of compatibility where their legislation or amendment is expected to have a material impact on the superannuation system. The statement of compatibility includes a qualitative assessment of the bill's or regulation's compatibility with the objective of superannuation detailed earlier. This will strike the right balance on accountability to ensure that changes to the superannuation system are consistent with the objective. This also makes sure that the coalition cannot play politics by the back door and that, when they try and rob the future of hardworking Australians, they will have to face the music. Improving the retirement phase is a natural progression of the government's priorities to strengthen the superannuation system, as more members transition from the accumulation phase to the decumulation phase of superannuation.
This bill will complement but not change the core trustee obligations under superannuation law. Trustees must continue to make investment decisions in the best financial interests of members. Superannuation is an institution we can all be proud of. Australia manages the fourth-largest pension pool in the world. This represents just how important it is to protect its stability. Legislating an objective for our superannuation will ensure that this institution remains strong and that, when politicians on any side of the House in the future seek to make changes, the objectives stay front and centre. The Albanese government doesn't play politics with your savings. A Labor government legislated compulsory super way back in 1992, and we will always defend it against raids from those opposite. Labor governments are dedicated to protecting working Australians, and that starts with making sure that your super is safe and stable. The former government attempted to privatise their policy problems by forcing Aussie workers to take from their future in order to survive.
This bill is a vital step in continuing to protect our great Australian institution of superannuation and to stand up for what the Labor Party is all about: the rights of workers and their ability to enjoy retirement. This government will never stand idly by and let those opposite pillage the superannuation system.
