Interview with Sarah Abo - Channel 9 Today Show

E&OE TRANSCRIPT

SARAH ABO, HOST:   Well, former Prime Minister and the architect of superannuation Paul Keating is casting doubt this morning over Labor's new superannuation tax plan, saying it might impact many more people than the government is letting on. Joining us to discuss today's headlines is Employment Minister and Workplace Relations Minister Amanda Rishworth, and Deputy Opposition Leader Ted O'Brien. Good morning to you both. Amanda, let's start with you. So, to have the father of compulsory super take a public swipe at his own party, that has to hurt.

AMANDA RISHWORTH, MINISTER FOR EMPLOYMENT AND WORKPLACE RELATIONS:   Well, first I would say that Paul Keating is a great Labor person and was the architect of superannuation, and that's why he is absolutely cheering on us getting to 12 per cent superannuation guarantee. That's happening today.

SARAH ABO:   That's not the question I asked, Amanda.

AMANDA RISHWORTH:   Well, finally we're getting there. In terms of the superannuation proposals that we have put forward around people with very large balances of $3 million, of course, we listen to different views, and we listen to Paul Keating respectfully, as we do others.

SARAH ABO:   So, are you dismissing what he says? Because you're right that he's championing the 12 per cent increase. He's on campaign for that and it's coming into effect today. But he reckons that, that 12 per cent extra in the contribution to super might actually mean that workers starting out now, like tradies, for example, could be in that savings bracket that's captured by your unrealised gains tax. Let's not forget it's unrealised.

AMANDA RISHWORTH:   Well, firstly, I would say that 0.5 per cent are currently affected…

SARAH ABO:   Currently.

AMANDA RISHWORTH:   I think a lot of Australians feel that they are very far off from a balance of $3 million. I think if people checked their super balances today, they would feel very far off, going to 12 per cent helps with that. But of course, what we're doing is a very modest change for those that have very large balances of $3 million. It is 0.5 per cent of account holders. This is a modest change. And it is about sustainability in our super system.

SARAH ABO:   What about indexing it? We had Sally McManus on the show earlier saying that might be a good idea to do.

AMANDA RISHWORTH:   Well, I have to say that in our taxation system automatic indexation is not a feature. It's not a feature for the increased contributions required by high-income contributors when they go over that threshold. And it's not a feature of our taxation system. So, it's not a built-in feature of our taxation system currently as it stands.

SARAH ABO:   Alright. Ted, is Paul Keating right?

TED O'BRIEN, DEPUTY LEADER OF THE OPPOSITION:   Sarah, I can't believe I'm on national television as a Liberal defending Paul Keating against the Labor Party. I mean, Paul Keating is dead right. Labor's new superannuation tax is super big, it's super bad, and over time, millions of Australians are going to be captured. Paul Keating has belled the cat. And I don't blame him for being upset. I mean, this is the Prime Minister who did establish the scheme, which was meant to be a retirement-saving scheme so families can go into retirement with wealth. Labor today, under Anthony Albanese, is turning it into a scheme for revenue collection. This is a blatant tax grab. And the younger you are as an Australian, the higher the chances are that you are going to be stung by Labor's new super tax. Which is why it's super big, super bad, and Paul Keating is dead right. He's belled the cat, and Labor has no explanation. Even Amanda's explanation there was, people don't feel as though they've got $3 million.

AMANDA RISHWORTH:   Excuse me, Ted.

TED O'BRIEN:   It's not about feelings. This is about arithmetics.

AMANDA RISHWORTH:   No, no, I didn't say that, Ted. Let's be really clear.

TED O'BRIEN:   Without indexation, you are going to see more and more younger Australians stung by Labor's super tax. The Minister himself says it's over a million.

AMANDA RISHWORTH:   Let's be really clear. There are very generous concessions for tax in the superannuation scheme. All we are suggesting is those.

TED O'BRIEN:   How many people will be stung? How many people will be stung?

AMANDA RISHWORTH:   With very, very large balances will get a smaller concession.

TED O'BRIEN:   How many people?

SARAH ABO:   Well, Amanda, it starts at 3.8 in the first financial year, and then it boosts to 8.2 by 2035-36. But we need to move on, because I want to ask you about this as well in the Financial Review this morning. It's been revealed Defence Minister Richard Marles didn't receive formal updates from military chiefs for almost two and a half years. I mean, this includes reports on the readiness of our ADF to be deployed to missions. Amanda, how could something like that happen?

AMANDA RISHWORTH:   Well, I have to say that our Defence Minister and our Government has been absolutely focused on preparedness and readiness. That's all what we've been doing.

SARAH ABO:   But you don't get briefed for two and a half years?

AMANDA RISHWORTH:   We have undertaken the Defence Strategic Review. Then we have the new Defence Strategy. And our investment, which is at a record high, has been all about preparedness. It's all about being ready. It's all about having the capabilities we need to address the strategic circumstances we find ourselves.

SARAH ABO:   But how do you know if the ADF isn't telling you how ready they are?

AMANDA RISHWORTH:   We have a strategic defence plan. I think it is ridiculous. One of the examples that we are looking towards is acquiring long-range missiles sooner. That's one example which we have taken to prepare us and make sure we're ready.

SARAH ABO:   We do have to go. Just very quickly, Ted, is that a bit of a governance failure in your eyes, just very quickly?

TED O'BRIEN:   It's ridiculous. We've got the Defence Minister out there the last few days saying Australia doesn't need to invest further on defence. And now we find out, in fact, he's actually not even getting reports on defence. So, he's making it up as he goes. He hasn't got a clue, which is why the Labor Government is making Australia not just poorer, but also weaker at a time when we must be getting stronger.

SARAH ABO:   Alright, a few questions to ask the Prime Minister when he joins us after seven. Thanks guys for your time this morning.

[ENDS]

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