The Minister for Revenue and Assistant Treasurer, Senator the Hon Helen Coonan, said today Labor's decision to adopt the Government's longstanding policies of choice and portability in superannuation was welcome, but six years overdue.
Senator Coonan said Labor's policy turnaround, and Senator Nick Sherry's statement today that the ALP would support choice and portability, had wasted time and money in the industry and the Government, but more importantly the delay had been to the detriment of ordinary Australian workers.
"There are two and half super accounts for every worker, and if choice legislation was passed six years ago, these workers would have been better off through lower overall fees and more efficiency. In addition, workers may have been able to limit the number of their accounts," Senator Coonan said.
"Increasing consumer and industry pressure has finally brought Labor to its senses.
"The true test of their convictions will come on the floor of the Senate. Will Labor actually support the introduction of choice or will the trade unions pull them back into line?
"I call on Labor Senators to stand behind their acceptance of Choice and pass the Government's legislation rather than hold the freedom of Australian workers to ransom in the Senate. And I call on them to honour Senator Sherry's commitment to support the Government's superannuation co-contribution for low income earners."
Senator Coonan said the Government's Choice package would provide $28.7 million to the ATO to administer choice and to educate consumers about how to exercise informed choices under the new system. The Financial Services Reform Act that commenced on 11 March this year had already enhanced the disclosure obligations for superannuation funds and it was disappointing that Labor had moved a motion to disallow part of this enhanced regime.
"For Senator Sherry to assert that competitive pressures in the system will drive fees up, and that Australian employees can't be trusted to make intelligent choices is absurd," she said.
Senator Coonan said it was disappointing that Labor still failed to produce an actual policy, and was simply testing the water by putting up so-called "options".
"While the Government is in the process of implementing a package of meaningful reforms Senator Sherry is instead playing policy pick-a-box," Senator Coonan said.
"The public are still left guessing - which of the 29 policy options will the ALP pick?
"Labor has moved from being a policy no-show to a policy game show.
"We all know what the options are, isn't it about time Labor actually spelled out its policy?"
Senator Coonan said she hoped Senator Sherry was not simply putting forward ideas to generate some publicity before dropping them like a hot potato, as his colleague Mark Latham had done with his options for share ownership.
The Government has already implemented legislation to require employers to contribute superannuation guarantee payments on a quarterly basis from 1 July 2003. It also requires employers to inform employees of those contributions. This will act as a safeguard and reduce the incidence of unpaid SG, and enable the ATO to respond more swiftly to instances of unpaid superannuation.
When Parliament resumes it will debate important Government proposals to help those with the financial capacity to save for their own retirement as well as those who can not.
Senator Coonan said the Coalition's superannuation co-contributions for low income earners would see the Government paying up to $1000 a year directly into the superannuation accounts of low income earners to help improve their retirement savings.
"At the same time, as promised, the Government is moving to reduce the superannuation and termination payments surcharge rate from 15 per cent to 10.5 per cent over the next three years.
"This measure will encourage those who are financially able to make voluntary contributions to their superannuation savings and become more self-reliant in retirement.
"All our policies before the election were funded in the Budget and are now being delivered."