Tony Smith (Casey, Liberal Party, Deputy Chairman , Coalition Policy Development Committee) Share this | Hansard source

This matter of public importance really sums up the essence of this government. This matter of public importance highlights the government’s record of broken promises. This matter of public importance highlights the government’s monumental budget failure. This matter of public importance highlights Labor's absolute hatred of aspiration, self-reliance, choice and reward for effort.

Five years ago this week, it was the first sitting of a new parliament with a new government. The member for Griffith, who now sits over there, was sitting here at the table. His loyal deputy was sitting behind him. In the first week of 2008, a new Prime Minister had been elected and the government had changed on the back of a litany of specific promises. Think back to that time. In the days leading up to the election, the then Leader of the Opposition had declared himself to be a fiscal conservative and had declared that reckless spending must stop. That was more than $190 billion ago.

My colleagues behind me look back on that period and say that there was not a single Labor statement made in the lead-up to the 2007 election that has not been breached. If we were to mention every solemn promise, every declaration and every guarantee across every portfolio area, we would need an entire day of parliament.

When it comes to superannuation, we all remember—and, more importantly, the self-funded retirees of Australia remember—a cast-iron, solemn guarantee made on 12 November 2007 by the then Leader of the Opposition, the member for Griffith. It was a promise that there would be no changes whatsoever to superannuation if Labor were elected. That is the version in English. Here is the exact quote from the member for Griffith and then Leader of the Labor Party in an interview on Radio 4BC: 'What I find around the country is there's a whole lot of what I describe as whispering campaigns by the Liberals. I discover them here, there and everywhere. Absolutely not, there will be no change to superannuation laws, not one jot, not one tittle.' That solemn declaration was made 12 days before the election. It could not have been clearer.

Along with that solemn guarantee, the people of Australia can remember other solemn guarantees in every portfolio area. Whilst I said before that my colleagues and I would say that every single promise Labor made before the 2007 election was a broken promise, I have to say there is one exception. That was a statement made by the member for Kingsford-Smith about 10 days before the former Prime Minister's statement, and it is the only statement the Australian people can look back on and say, 'That was a true promise.' It was made in a moment of candour to radio journalist Steve Price when he had a conversation with the member for Kingsford-Smith at Melbourne Airport. Steve Price bemoaned the fact that the election campaign was turning into 'me-too' politics and that Labor was copying the coalition’s election promise. Steve Price said, 'I said to Garrett that it was turning into the me-too election. With a straight face, he replied that it would not matter because "once we get in, we'll change it all".' Hasn't that been the only true statement? 'Once we get in, we'll change it all.'

Superannuation is an area where they could not have changed it more from day one—not one jot, not one tittle. And they have changed it by $8 billion of new taxes—eight billion jots and tittles, to use the member for Griffith’s language. It did not take very long. In the 2009 budget, the Treasurer announced that the government would lower the cap on concessional super contributions and that it would reduce the superannuation co-contribution scheme. Let me deal with the second of those first. I know the member for Wentworth will know where I am going on this. At that time, it was said that the reduction in the super co-contribution would be temporary, because this was the time that temporary deficits entered the Australian language, more than four years ago. What turned out to be temporary was made less temporary the following year, then it was made permanent. That $1,500 co-contribution first reduced to $1,000. Then, finally, in the MYEFO of 2011, it went down to $500. It was a tax rise and a hit to the low-income workers that those opposite seek to preach about.

And then the concessional caps, the money that people could put into their superannuation, will go from between $100,000 and $50,000, depending on your age, down to $25,000.

Let us have a look at how those policies are impacting. In Labor's world they say they are attacking the rich. Everyone out there in the Australian public knows they are attacking everyday Australians. You could not get a clearer example than the super co-contribution—'not one jot, not one tiddle', from $1,500 down to $500, and the indexation removed to boot. Think of low-income workers trying to get ahead, making their contributions and getting a matching contribution. It was not anything that was criticised by those opposite during the Howard government but it was something they always had on their secret hit list. When it comes to the concessional caps, what about those in their 50s and 60s who might be in small business and want to save for their retirement? If they put in more than $25,000 a year, they get hit with the highest tax rate. This government is so ignorant it assumes they have an even income every year; it assumes their costs are the same every year. It is ignorant of the resources needed to build up a small business. They have been penalised and hit by this government. And what about a single mother who, in the years leading up to retirement, might want to put significant amounts of money into superannuation? That can no longer happen, because of this government.

Of course, it is only the beginning. We have seen in the last week Labor's determination to hunt around for even more taxes from superannuation. Last week we even had Labor figures warning against this attack on superannuation, and today we have had the news that private super is in the frame for a tax hit on self-funded retirees, those with self-managed funds. 'Not one jot, not one tiddle'? What we know is that, if this Labor government is ever re-elected, what they have done with superannuation in the last five years, to paraphrase Deborah Conway, will only be the beginning—because they have self-funded retirees in their sights just as they have those with private health insurance in their sights. All of this has come about, as I said at the outset, because of this government's monumental fiscal failure: 'Once we get in, we'll change it all.' And haven't they changed the budget in Australia! After saying reckless spending must stop when they had $45 billion in cash in the bank and a $20 billion surplus, they have now reached the point where they are scrambling around for more taxes to fill in the budget holes that they have dug as a result of their utter fiscal incompetence.

We have seen it on display right through this term and at the start of this final year of this term. You need only look at the Treasurer's failure on the mining tax as a subset of his failure on the budget—$126 million in half a year, when he is meant to be collecting $2 billion in the full year. I said the other day it was about $5.50 for every Australian. As someone pointed out afterwards, when you take into account the administration costs and the fact that that $126 million means company tax was not paid, I regret to say that I was exaggerating. It will work out something closer to a gold $2 coin—if someone can do the maths.

We can look at the temporary deficits that were announced back in 2008 and 2009, and at Treasurer Wayne Swan's accuracy. Look at last year's budget outcome. As I have said before in the House, back in December 2010 he said that the deficit would be $2 billion. By budget day 2011, he was saying no, it will be $22 billion. By the MYEFO in December 2011, he said it would actually be $37 billion. By budget day last year, it was $44 billion. Let us be generous and take out that first MYEFO after the 2010 election, and we have had a blow-out from $22 billion to $44 billion in one year.

I have said before in this House that, if Wayne Swan was competing in archery, the only safe place to be watching would be via your television. As I said the other day, the member for Bennelong also pointed out that it would be equally safe to watch standing directly in front of the target. Australian humour is a wonderful thing. We call people by nicknames. We call extremely tall people' Shorty' and we call short people 'Stretch'. I think we should call this Treasurer 'Bullseye' because of the number of targets he has missed. But the serious side is that it is the Australian people who are paying the price with higher debt and the $7 billion it costs just to keep that debt, not to pay a dollar off. And of course they are paying the price of the Treasurer's incompetence with higher taxes.

When they look back over the last five years and when, later on this year, they look back over the history of this Labor government, they will know that, for a re-elected Labor government, the history is the future. As far as superannuation goes, there is absolutely no doubt that this government will leave no stone unturned to jack up taxes.

We also know that every solemn guarantee is just a guarantee that they will break their word. 'Not one jot, not one tittle'—those solemn guarantees will be made again, only to be broken if Labor are re-elected.

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