The Australian Democrats will back moves by the Australian Labor Party to close down the existing superannuation schemes covering Federal parliamentarians, judges and the Governor-General.
The Democrats in late December challenged the ALP to move on the controversial parliamentary superannuation scheme and in early February backed the declaration by Opposition Leader Mark Latham that he would close the schemes “consistent with existing practice”.
However, the leader of the Australian Democrats, Senator Andrew Bartlett, says the changes can be implemented by joint action in the Senate before the forthcoming Federal election.
“Labor and the Democrats can make the changes pass the Senate now, not after the next election. This will put strong pressure on the Prime Minister,” Bartlett says. “That way, it could apply to new parliamentarians elected at the next election, bringing forward the final expiry date of the excessive current scheme.”
“If the Prime Minister really wants to defend the outrageous payouts, he and his Party can cast their votes and show the public they wish to maintain their own generous entitlements. There’s no need to wait around until we see what the election result is. Politicians’ super has been obscenely generous for far too long,” he says.
In declaring the ALP’s new policy, Latham says Parliamentary superannuation has become a major source of public dissatisfaction and cynicism.
“That is why a Labor Government will pass legislation closing the scheme to new entrants,” he says.
Latham says both the Governor-General’s Pension scheme and the Judge’s Pension Scheme would also be closed to new entrants.
He says the $830 million unfunded accrued government debt of $830 million resulting from the three schemes will be paid off over time as the schemes wind down.
Latham says that having made the policy decision, he will also be reducing his own superannuation arrangements if elected Prime Minister.
“If elected Prime Minister, I will ensure my superannuation benefits are reduced to those of a Cabinet Minister — cutting the salary of office super loading for the Prime Minister from 160 per cent to 72.5 per cent, with a similar cap also applying to all future Deputy Prime Ministers, Treasurers, Senate Leaders, Leaders of the House, House Speakers and Senate Presidents.”
