Shadow Assistant Treasurer Mathias Cormann has questioned why Assistant Treasurer Bill Shorten said he was abolishing the age limit for superannuation guarantee (SG) contributions when the new superannuation amendment bill itself states the limit will only be raised by five years.
"Is Bill Shorten dishonest or just incompetent?" Cormann asked in a statement.
"The legislation he introduced into the Parliament is clear. It is not removing the age limit at all. Instead Bill Shorten’s legislation only increases the superannuation guarantee age limit from 70 to 75."
Cormann said this was in line with Labor’s policy at the last election, but has now been tied to "the deeply flawed, unfair and ill-conceived mining tax," which was never a part of Labor’s SG age limit policy prior to the election.
In the relevant section of the Superannuation Guarantee (Administration) Amendment Bill 2011 posted on the Treasury website, the bill proposes to: "Omit ’70’, substitute ’75’" from the passage relating to the age limit for SG contributions.
The bill also states that the amendments apply to superannuation guarantee: ‘for quarters starting on and after 1 July 2013’.
But in his speech to parliament, now posted on the Treasury website, Shorten stated, "…this bill abolishes the superannuation guarantee age limit."
Cormann said that Shorten’s speech misled parliament, and created the impression that he was acting to implement Coalition policy to abolish the age limit which the Coalition took to the last election.
In an explanation to parliament, Shorten claimed to have been misrepresented, and insisted the government is "firmly committed to abolishing the Superannuation Guarantee age limit for all Australian workers".
"My second reading speech for the Superannuation Guarantee (Administration) Amendment Bill yesterday states that the bill will lift the SG limit to 75. It also states that after strong representations from the Labor backbench and the crossbench – the member for Lyne and the member for New England – the government has decided to remove the age limit for superannuation contributions altogether," he said.
"The government will introduce our own amendments to the bill to achieve this in a sustainable and prudent way that provides sufficient lead time for employers and older Australians to adjust," he said.
In a later Treasury press release Shorten is quoted as saying, "As a result of strong representations from members of the Labor caucus and cross-bench, including Yvette D’Ath, Shayne Neumann, Deb O’Neill, Michelle Rowland, Rob Oakeshott and Tony Windsor, I have decided there will be no age limit for superannuation guarantee contributions. These changes will start on 1 July 2013."
Money Management sought clarification from Treasury but did not receive a reply by deadline.
Update
A representative from Shorten’s office contacted Money Management and said the reference to the age limit being abolished in the bill was an error in the speech writing process that was clarified in Shorten’s second reading of the speech, which stated: “However, as a result of strong representations from members of the Labor caucus and cross-bench – including the Member for Petrie, the Member for Blair, the Member for Lyne and the Member for New England – I have decided to remove the age limit for superannuation guarantee contributions altogether.”
This would take place via an amendment to the bill, the representative said.
