Thanks very much for that kind welcome. I'd like, in particular, to acknowledge the CEO of the SMSF Professionals' Association of Australia (SPAA), Andrea Slattery, and thank her for the invitation to come and speak with you tonight.
It's a great pleasure to join you for this gala dinner marking 10 years of SPAA. 10 years of important advocacy, achievement, commitment and professionalism for all your members. It's a history you can be very proud of.
Superannuation is a vital aspect of our economy, and by any measure, its value is only going to grow in the decades ahead.
Not only the value of the national savings pool, but the value to all Australians, as our population ages, of having a robust superannuation system they know they can rely on in retirement.
Labor the custodians and champions of superannuation
Last year we observed the 20th anniversary of compulsory super, which was introduced by a great Labor Prime Minister - in the face of some pretty fierce opposition, in and outside the parliament.
Before Prime Minister Keating introduced the Superannuation Guarantee in 1992, only about 40 per cent of employees had any superannuation savings, and they were in the public sector or the top tiers of industry.
In fact, Keating made the first move toward universal access to superannuation as Treasurer in the 1980s. It grew out of an accord between the Government and the ACTU, led by Bill Kelty.
The unions had shown they were willing to act on wage restraint and the Government wanted to ensure that workers had a lasting structural benefit.
So in February 1986, an agreement was reached that part of a wage increase would go to workers in cash, and the rest would go to employers towards superannuation.
Kelty and Keating worked together to fight for this agreement – a fight that employer groups took to the High Court. The High Court ruled in favour of super, and the way was cleared for a journey towards universal superannuation.
Keating's scheme, finally legislated in 1992, was farsighted policy, based on his perception of an approaching demographic bulge, still decades away.
It was a visionary Labor policy, based on an appreciation of the needs of individual workers, in the broader context of a sound and sustainable system.
In that sense the story of superannuation is the story of modern Labor – looking after individuals and families and at the same time putting in place big, structural reforms that enshrine equality, sustainability and prosperity.
Carrying the torch for superannuation
This Government has certainly carried Keating's legacy into the present day. Let me briefly run through some of the things we've done to make superannuation stronger and more sustainable.
Starting on July 1 this year we are increasing the Superannuation Guarantee rate from 9 per cent to 12 per cent. This is a historic reform that will benefit around 8.4 million Australian workers.
As an example, a 30-year-old on average full-time wages who retires at age pension age is expected to have around an extra $118,000 in superannuation in today's dollars from the increase in the Superannuation Guarantee rate.
When super was introduced, no-one over 65 was allowed to make Superannuation Guarantee contributions.
We've abolished that age limit, so that anyone still working can make contributions no matter what their age. In the 2013-14 income year, that change will boost the super savings of around 51,000 workers aged over 70.
This change reflects the broader change in our society. Our working lives look very different now than they did in 1992. We're living longer, so we can't rely on old assumptions about how our lives and careers will look after our 65th birthday.
We've scrapped the tax on Superannuation Guarantee contributions for low income earners who earn up to $37,000 a year.
That's 3.6 million Australians, including 2.1 million women, whose savings now go straight into their nest egg. Overall, that's a $1 billion boost to retirement savings every year.
We're also lifting the concessional contributions cap for individuals aged 50 and over with superannuation balances below $500,000.
From July 1 2014, you'll be able to make up to $25,000 more in concessional contributions than is currently allowed under the general concessional contributions cap.
We've created the SuperStream and MySuper reforms to improve the governance of the industry, and to make super more efficient and streamlined, so that fund members only pay for what they actually need and use. SuperStream alone will save fund members $2.7 billion a year in fees.
And as the Prime Minister has confirmed, Labor will not be implementing a tax on superannuation withdrawals for people over 60 – because we believe in encouraging people to save for their retirement.
As you can see, all of these reforms are grounded in a vision for a strong, stable, comfortable retirement income for all Australians.
Australians contributed a record amount to super over the past year and the outlook is strong thanks to the Government's reforms. Australia's total superannuation savings are projected to be $500 billion higher by June 2037 as a result of the Government's superannuation policies.
This strong outlook was acknowledged by the self managed superannuation fund (SMSF) sector recently in the SPAA and Russell Investments Annual Study of SMSFs which noted "growth in the SMSF sector shows no signs of abating".
And our vision for a sustainable superannuation system has seen our pool of managed funds grow to $1.5 trillion – the 5th largest in the world.
Labor reforms mean majority wins
As the architects of superannuation, we've continued to refine and reform it, in order to meet the changing needs of our society. The reforms we've put in place will benefit the majority of Australians.
There is no change for changes sake. Our approach is underpinned by some deeply held principles and values.
The principle of sustainability – so that a system that works for us can also work for our children and grandchildren.
The principle of concessionality – because we recognise Australians should be rewarded for saving for retirement, most of all those who can least afford it.
The principle of demographics – because we recognise that superannuation has to serve the people. It has to respond to who we are as a nation, and the reality that we're all living longer.
As system where people worked hard and retired poor does not represent who we are, nor who we want to be.
But above all, our approach is underpinned by the principle of fairness – so deeply rooted in our culture and our history.
This is underscored by lifting the super rate from 9 per cent to 12 per cent. This, along with increasing the age pension, continues Labor's history of ensuring that all Australians have a decent income in retirement.
We've scrapped the tax low-income earners pay on their superannuation.
We've scrapped the age limit for contributions because it is unfair to stop people still working from continuing to save for their retirement.
And we introduced SuperStream and MySuper to clear away unfair fees and costs.
Conclusion
The superannuation system in Australia is the envy of the world, it's growing and it will support millions of Australians in their retirement, because of Labor's vision and dedication to this policy. It serves the national interest both now and into the future, and we look forward to working with you to do just that in the months and years ahead.
Let me congratulate you once again on your 10-year anniversary, and thank you very much for having me tonight.