JOSH FRYDENBERG:
It’s great to be here at the G’ for that one day in September and I wish both teams, GWS and Richmond, all the best for what is a very special day in the national sporting calendar.
Yesterday, the Government announced a retirement incomes review to be chaired by former senior Treasury official, Mike Callaghan, and with Carolyn Kay from the Future Fund, as well as Professor Deb Ralston, an experienced person in finance at Monash University.
This will be the first holistic review of our retirement income system since compulsory super came in in the early 90’. And it will be very important in helping to determine future policy positions by creating a fact base of what is happening in the system, particularly as we have an ageing population, people are living longer and our superannuation pool is growing dramatically over time.
I also want to make a couple of comments about Jim Chalmers and what appears to be his speech on the front page of the newspapers today saying that Labor needs to learn the lessons of its defeat at the federal election. Well, it’s hard to take Labor seriously and you have to look at what Labor does, not look at what Labor says because Jim Chalmers was the co-architect of nearly $400 billion of new taxes that Labor took to the last election which is still on their books. Indeed, Jim Chalmers has said that he was “proud and pleased” of Labor’s retirees and housing taxes. And Labor and Jim Chalmers have said that our tax cuts, which have passed the Parliament, were “offensive.”
Well, again, you can’t take Labor seriously, they will always be the Party of higher taxes to chase higher spending.
QUESTION:
Getting back to the review, Labor says the review could be the stalking horse for cutting the pension. How concerned should Australians be that the pension could be cut in any way?
JOSH FRYDENBERG:
Well, the first thing to say is that this is a recommendation of the Productivity Commission, which the Government has accepted to do this review. So, unless Labor is saying that we shouldn’t be listening to the Productivity Commission and holding an independent review, I actually can’t understand their position on this and, indeed, on many other things. This review is an important opportunity to develop a fact base, to inform future policy decisions in areas which are changing quite dramatically with the changing demographic shifts across the economy. There are three pillars to our retirement income system. There is the Age Pension, there is voluntary savings and there is compulsory super. We need to understand how they interact together.
QUESTION:
So pensions are not under threat?
JOSH FRYDENBERG:
Well, the pensions are going up, as you know they are indexed. And, of course, our focus is on putting more money into the pockets of not only hard-working Australians, but indeed, retired Australians and senior Australians and it was Labor who took to the election a retirees tax which was going to punish senior Australians, particularly those who had provisions for their own retirement.
QUESTION:
Is lifting the pension age to seventy something that is back on the cards again?
JOSH FRYDENBERG:
No, it’s not. What we’re focusing on is, again, developing an evidence-based approach to future policy decision.
QUESTION:
So, the retirement age won’t be lifted to seventy is that what you are saying?
JOSH FRYDENBERG:
We haven’t changed our position. Our position still remains.
QUESTION:
The review is looking at voluntary savings, correct? Does that mean the Government is wedded to the idea of compulsory superannuation?
JOSH FRYDENBERG:
Well, as you know there is a legislated increase of compulsory super to 12 per cent and that remains the Government’s position and policy. Superannuation is important in our system. It has provided for a retirement income for people who have contributed throughout their working life and that grows over time. Currently, it’s $2.8 trillion and it will more than triple in the decades ahead.
QUESTION:
The compulsory super guarantee increase is due to come in towards the end of this term. It’s already been pushed back once, can you guarantee that it will come in in 2021?
JOSH FRYDENBERG:
Well, the Prime Minister and I have already commented on that. Our position hasn’t changed. It’s legislated and we continue to support that.
QUESTION:
It was legislated before, though.
JOSH FRYDENBERG:
Well, it’s been legislated. We continue to support that. I’ve spoken in the Parliament, the Prime Minister has spoken, you know, Labor can try to set off all of these distractions but the reality is the Productivity Commission recommended that we conduct a review. We are going ahead with this review. We have a top panel led by Mike Callaghan, including Carolyn Kay and Professor Deborah Ralston and we look forward to receiving their report in June.
QUESTION:
What about the idea that the family home as an asset test for the pension, would that be part of the review?
JOSH FRYDENBERG:
Again, I’ve commented on that today. Our position hasn’t changed and that will never be part of our policy.