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First State Superannuation Amendment Bill 2008
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Wednesday, 04 June 2008 |
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Mr MIKE BAIRD (Manly) [12.13 p.m.]: I lead the debate for the Opposition on the First State Superannuation Amendment Bill 2008. I say at the outset that there are times in this House when one must take significant time to go through a bill or the State budget in forensic detail. We will do that in regard to the budget. There are other matters, such as electricity privatisation, that will take many more hours in this House to consider. In relation to this bill I am pleased to report to the House that the Opposition strongly believes it is a commonsense measure in all its parts.
The bill will enable New South Wales employees in the following groups to receive their 9 per cent superannuation payment as part of their salary rather than as a contribution to superannuation: firstly, public sector employees who earn less than $450 a month, and, secondly, public sector employees over the age of 70.
The First State Superannuation Act 1992 governs superannuation arrangements for New South Wales public sector employees recruited since 1992. First State Super is the default superannuation fund for these employees. Following the last State election, polling staff suggested that their 9 per cent superannuation contribution should be paid as part of their salary instead of a small payment going to a super fund and being eroded by fees. The interesting aspect is that the Iemma Government has decided to consult on this matter. For me that is the highlight of the bill. I think it is a very positive measure. Speaking from experience, having been through university and having had a number of jobs during that time, there is nothing more disturbing than to have small amounts of money disappear into superannuation funds never to be seen again. It creates a significant burden and I think we all understand the polling staff seeking full payment for their work on polling day rather than having part of those funds disappear into a super fund.
Under Commonwealth legislation superannuation funds make contributions only for employees earning more than $450 a month. Commonwealth legislation also prevents superannuation funds from accepting employer contributions on behalf of employees over the age of 70. As a result the New South Wales Government has had a policy of paying these employees their superannuation payment as part of their salary. This bill formalises that policy under the Act. Again, we think that is sensible. The legislation aligns with Commonwealth legislation, which makes sense. It will prevent the erosion of small superannuation payments. I think the amount involved is about $30 for polling staff, but it also applies to the broader public service.
Anyone who receives less than $450 a month will be in the same position as the polling staff, but the polling staff are the main drivers of the bill. It does not make sense to lose $30 from the money earned on polling day to superannuation. The bill will reduce the administrative costs for the First State Superannuation Fund, which again makes sense. It will also ensure that public sector employees over 70 have immediate access to their full salary. We have concerns about superannuation but we will not use debate on this bill to discuss those matters. We do not want to waste the time of the House time debating any issues outside the leave of this bill because we support it. We think it is common sense.
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