E&OE..................
Well thank you very much John, Jan Herron, my parliamentary colleages, Bob Carroll, ladies and gentlemen. As John said we are in the home stretch, which is probably the appropriate sporting analogy this week. We';ve got the last days of a very tense test match to use a sporting analogy with which I';m even more familiar. And can I say to you very directly and very genuinely I think this election is anything but over. I think we do face a very tough fight, the preference deal that';s been made between the Labor Party and the Australian Democrats, which has involved an enormous amount of compromising of policy, particularly in relation to the deal with the Greens. That particular preference deal is going to mean that the Coalition will on this occasion be required to drive its primary vote to a much higher level than we achieved in 1998. But although the result is I believe still very much in the balance the issues in this campaign could rarely have been more clear cut or more compelling.
There are two overriding questions that undecided voters must ask themselves. The first of the overriding questions is who as Prime Minister and which people as a team are better able to lead Australia and to guide Australia at this time of particular challenge on the national security front? And the second overriding question is that of economic management, who is better able at a time when through no fault of our own we are going to face some challenges next year, who is better able to lead and manage the Australian economy through that very difficult and challenging period? Because in the end my friends you can propound a set of policies, you can promise to put more resources into areas like health and education and aged care but unless you have a functioning growing economy you do not have the wherewithal to deliver on those commitments.
And that is really the core of the Labor dilemma so far as their programme is concerned. Everybody';s in favour of making more provision when you can afford it for necessary social services and social infrastructure, providing the money is properly targeted and properly directed. And in fact because of our good management of the Australian economy that is what we have been able to do over the last five and a half years. I don';t want to besiege you with a lot of statistics at a lunch like this but one issue that the Labor Party has talked incessantly about is our alleged discrimination about government schools throughout Australia. Can I just say to you as a great believer in freedom of parental choice in education, a great believer in it, can I say to you that over the last five and a half years we have increased federal government spending on government schools by 43 per cent, even though the enrolment in government schools over that period of time has only risen by 1.8 per cent. Now that hardly represents discrimination against government schools, it hardly represents the alleged trashing of the public education system that we have been constantly accused of by the Labor Party. But the point I make is that because we have run a better economy we have been able to do that. When we became the Government in March of 1996 and we became that Government by courtesy of a tremendous Liberal Party result here in the state of Queensland, an absolutely tremendous result, when we became the Government in March of 1996 the accumulated Federal Government debt was $96 billion. The Labor Party had run five successive budget deficits and they gave us an accumulated government debt of $96 billion. By the end of this financial year we will have repaid $58 of that $96 billion of Government debt, we were opposed every inch of the way by the Labor Party in our attempts to repay it.
But the good news out of that is not only the strength it gives us for the future but also by repaying debt we have a lower interest bill and that lower interest bill has meant that we have had $4 billion a year more available to spend on things like hospitals and roads and schools. And what it means ladies and gentlemen is that we go into this time of international economic challenge stronger and better able to face it than we would have been if the government had not undertaken the changes and the reforms to the Australian economy over the last five and a half years.
We are as a nation better prepared than most, we have probably the lowest interest rates in 30 or 40 years, we have the lowest debt to GPD ratio of just about any western country in the world. We have reformed our industrial relations system, we have reformed our taxation system, we have put in place a better system of commonwealth state financial relations with the states getting all the proceeds of the Goods and Services Tax and thereby having the capacity as our population ages to fund the services that an ageing population needs, and I';ll come to that issue in a moment in the context of superannuation policy and I haven';t forgotten that I';ve got to launch it. I haven';t forgotten that I';ve got it here, it';s a very good policy and you';ll love it but there are just a few of the fundamentals that I want to touch on about this election campaign. Because the last thing Australia can afford at the present time going into a period of international economic difficulty, the last thing we can afford is to elect a government that proved when they were last in office that they were hopeless economic managers.
Now we haven';t been perfect, we';ve made a few mistakes, I acknowledge that there were some transitional difficulties in relation to the implementation of the new tax system and we endeavoured to respond to a number of those. But that taxation system has helped make the Australian economy stronger and better able to withstand the challenges ahead. And I guess of all the things that would grieve me most if we were to lose at the weekend, of all the great policy changes the one that would really be at total risk, of total repudiation and total change, it would be the reforms that we have enacted in the areas of workplace relations. Because if Mr Beazley wins on Saturday you will have a federal Labor government and you will have state Labor governments and territory Labor governments everywhere except South Australia. You will have wall to wall, coast to coast, one end of the country to the other end of the country Labor governments. And can you imagine the outcome, it would be an industrial relations and economic diaster because what you would have - it would be a capacity for the ACTU and the trade union movement to reassert its authority.
Now if we had in the course of introducing our industrial relations policy, if we had visited unimaginable evil on the average working men and women of Australia the Labor Party would have an argument. But the reality is that our industrial relations policy and our economic management has delivered a trifecta to the working men and women of Australia. To start with their real wages are higher. Real wages under my prime ministership have risen by nine per cent, in five and a half years. They rose by 2.3 per cent under Hawke and Keating. Interest rates are vastly lower, I mean interest rates are now $350 at least a month on an average mortgage lower than they were in March of 1996. We';ve generated 830 000 more jobs, we have more than doubled the number of apprenticeships in this country.
When the Labor Party talks about higher education and tertiary education they only ever talk about universities. Now universities are very important but 70 per cent of people who leave school don';t go to universities, they want a traineeships or they want an apprenticeship, and apprenticeships were languishing under Labor, they were about 135,000 for 15 or 20 years. And we have lifted them to a figure of 310,000 a year and I am really proud as a Liberal Prime Minister of Australia that we have done more to provide opportunities and apprenticeships and traineeships than a Labor Prime Minister in 20 years even dreamt of.
But the threat of a total rollback of industrial relations if Labor wins is quite real. They will abolish workplace agreements, they will rip the secondary boycott protections out of the trade practices act, they will re-establish the right of union entry into workplaces whether that union entry is wanted or not, either by the employer or by the workers. They will impose on non-union members of the workforce, which is 80 per cent of the private sector workforce, a financial obligation in relation to benefits gained, allegedly by union action. The problem in the industrial relations area is that the Beazley prescription on industrial relations is even more pro-union and more retrograde than the approach adopted by either Bob Hawke or Paul Keating. Each of them, particularly Keating at some stage paid some lip service to the need to have a more flexible approach to industrial relations. But so total is the influence of former ACTU presidents and trade union officials on the frontbench of the Beazley opposition and therefore on the frontbench of a Beazley Labor Government that you will not go back to Hawke and Keating with industrial relations, but indeed you will go back further if there is a Beazley Government elected. And any incremental progress which has been made by small business on such things as unfair dismissal will go out the window, so far from us having a hope if we are returned of going even further on that front.
But of course my friends the other issue that';s very important I mentioned earlier is the issue of national security. Dealing with the number of illegal immigrants that have attempted to come into Australia has not been an easy issue for this government. It has been one of the most difficult issues that I have faced. But I have a very simple view and it is a view shared by all members of the Liberal Party and all members of the National Party. We will retain a generous approach to our refugee intake. We';ll continue on a per capita basis to take more refugees than any country in the world except Canada and that bears repeating because we are constantly lectured by people from countries that take fewer refugees than we do, that we are not pulling our weight. While maintaining that policy, we are going to decide and nobody else, who comes to this country and the circumstances in which they come.
We do not intend to hand over rights of entry into this country to the people smugglers, we intend to reserve our right as a sovereign nation to decide who comes here and the circumstances in which they come. You can have no assurance at all that if Mr Beazley becomes the Prime Minister on Saturday he will maintain that policy. He says so for the purposes of the election campaign but already members of his own party, his own candidates are fraying at the edges, already they are saying that once they get in they';ll review the border protection legislation. They don';t really privately agree with the line that Beazley';s taken, but you know he's got to take for the purposes of the election campaign. With Labor it';s always important not to listen to what they say but rather to remember what they did. When we put up the border protection bill he voted against it, and then he changed his mind and voted for it and many of his members when it was being debated said that once they got into office they';d amend it and change it and really they were beging dragged reluctantly to support it and they were really just doing it for the purposes of the election campaign.
So ladies and gentlemen they are the two overriding issues and they will define I believe the choice that the Australian people make on Saturday. But I do want to say a couple of things about a very important area of specific policy and that is superannuation because providing, through savings, for the future retirement plans is very important for any nation but it';s particularly important for a nation that faces, like all other western nations, an aging of her population over the years ahead. And the importance of retirement planning and savings should therefore occupy a very significant place in policy formulation.
Today therefore I have released and I am announcing a series of measures that will strengthen the foundations of the superannuation system to encourage a higher level of voluntary contribution and a strong savings and investment culture. It will provide greater access to superannuation, more incentives for voluntary contributions and removal of significant inequity in the system to assist both single income families and also couples where there is a significant disparity in the earnings of the two members of the couple. In particular I believe that the announcements I';m making today will be welcomed by Australian women, the self-employed, older Australians and those on low incomes. And a quick reading of that list suggests that only the blokes have missed out, but that's not true.
Today';s policy ladies and gentlemen also cuts the rate of the superannuation surcharge. We are committed as a government to assisting families to maximise the benefits available in superannuation. We';ll amend the superannuation laws to allow spouses to split their superannuation contributions. The splitting of superannuation contributions will apply to both personal and employer contributions. And this measure will be of particular benefit for families where one spouse is working in the home or is receiving a very low income by enabling contributions to be made by one spouse into a separate account in the other spouses name. Single income families will get access to two RBL';s, reasonable benefit limits, and tax free thresholds in the same way as do dual income families. In light of the significance of this change a thorough process of consultation will occur, particularly to ensure that any administrative burden does not fall on employers.
In an important new measure we';re going to change arrangements to allow for the first time superannuation contributions to be made on behalf of children. Superannuation should be seen as lifetime savings, as a strategy for all Australians from their earliest years.
Savings made on behalf of young people can yield considerable returns on account of the wonders of compound interest. Let me give you an example. If just $800 is invested each year for a child';s first eighteen years and then that lump sum is left to accumulate interest with no further contributions the value of investment will be worth almost $400,000 by the time the child reaches age 65.
The Coalition will therefore extend the circumstances under which contributions to superannuation can be made on behalf of children who would not otherwise have superannuation. Contributions up to a maximum of $1,000 a year will be allowed on their behalf and this will enable parents, grandparents, other relatives and friends to give a child an important foundation on which to build for their future. It will mean that if parents, grandparents, friends, relatives wish from a time that child is born to establish a superannuation status, a superannuation entitlement, that can be then rolled into the superannuation arrangement of that young person when he or she enters the workforce and commencing the traditional pattern of a superannuation contribution, then they can do so.
This represents a very major decoupling of the link between superannuation and paid employment and it represents a major broadening of the circumstances which over time people can build a superannuation entitlement. And of all of the policies, I believe that have been released during this election campaign, this says more about the long term importance of responding to both the ageing of our population and the need over time to build greater private national savings than any other policy that has been released.
In the area of self- employed people, under existing legislation, self-employed workers can claim an income tax reduction for personal superannuation contributions. The current $3,000 limit for full deductibility will be increased to $5,000 with 75 per cent deductibility for contributions above $5,000 up to the age base limits.
We';re also determined in our new arrangements to provide more help for low income earners to save for their retirement. We';re not in favour of a further increase in the superannuation guarantee charge, we would regard that as a further tax impost on Australian business, particularly on small business.
Those on low incomes are currently entitled to a maximum rebate of a hundred dollars for un-deducted personal superannuation contributions up to a thousand dollars. If re-elected the Coalition will replace the current $100 rebate with a far more generous co-contribution, whereby the Government will match personal superannuation contributions up to a limit of $1,000 a year. The maximum co-contribution of $1,000 will apply to those on incomes of $20,000 and will taper off on those on incomes between $20,000 and $32,500. This is a very important further incentive and assistance for people on low incomes to begin the process of accumulating savings and superannuation for their retirement.
The, as I mentioned earlier, the Coalition remains committed to ensuring its superannuation is attractive and the system encourages all Australians to save for their retirement. Commencing on the 1st of July next year a re-elected Coalition will reduce the superannuation surcharge imposed in 1996 by a tenth of its current level over each of the next three years. That is by a maximum of 1.5 per cent each year. We will review it at the end of our next term, our capacity and the desirability of further movement in that area.
We recognise the need for some change and reform in relation to that surcharge and I believe that this will go a distance towards meeting the concerns that have been expressed throughout the community about certain aspects of the impact of that particular measure.
The impact of an ageing population on Australia';s economy will accelerate substantially in coming years. For social and as well as economic reasons our response must include a greater use of the skills and experience of the increasing number of Australians over the age of 55. In seeking to encourage older Australians to remain in the workforce, our so-called gold collar workers, the Coalition recognises that many will want to continue to contribute to superannuation. So as a further contribution towards encouraging that I announce today that a re-elected Coalition government will further increase from 70 to 75, the age that working members of superannuation funds can make personal superannuation contributions.
I thought that would be widely supported.
There are a number of other ancillary measures. We';re going to extend the circumstances under which contributions to a superannuation fund can be made to ensure that the first child tax refund, which has become known in the trade as the “baby bonus”, can be contributed to the recipient';s superannuation fund and if you think for a moment when you add that to the announcement I';ve made about the splitting of contributions and also the matching on a co-contributory basis by the government of any payments that people with incomes under $20,000 and you put the three of those together it represents a huge advance, I believe for low and middle income females in the community and when you put all of those together it';s an extraordinarily attractive package and I believe will be a widely supported measure to assist Australian families.
We also recognise that the excessive component of a superannuation fund eligible termination payment can be subject to high effective marginal tax rates so we';re therefore going to put in place measures to ensure that the effective tax rate does not exceed 48.5 per cent. We';re going to push ahead with our choice of fund policy which will give workers a say where superannuation contributions made on their behalf are invested. And recognising recent developments in retirement income products, the Coalition will examine the tax and social security treatment of certain market-linked income streams including growth pensions. The Coalition will also help safeguard employees super entitlement by requiring employers to make quarterly contributions on their behalf and the prudential regulation of superannuation will also be enhanced and further consultations will take place with a view to introducing minimum capital requirements, compulsory annual general meetings for superannuation funds and applying a universal APRA Prudential Licence for superannuation funds. And we';re going to provide some additional resources to APRA to expand its superannuation investigation and enforcement capability.
And finally we';re going to provide non-residents who are permanently departing Australia the option of accessing their superannuation benefits early, reflecting the fact that they will not be returning to this country. Access to this, to these benefits will however be subject to withholding arrangements to return the tax concession provided for the superannuation benefits.
So ladies and gentlemen, I think that represents a very comprehensive, innovative and might I say, importantly, an attractive savings and superannuation policy. It has been tailored, having regard to our financial circumstances, it meets concerns that have been expressed in a number of areas, it trail blazes particularly in the area of superannuation for children, an entirely new policy area. It provides relief for middle and upper income earners in relation to the surcharge, but it also importantly provides a lot of additional help through the co-contribution of a $1,000 a year to people on low incomes. And when you add the effect of that in relation to the baby bonus and the new arrangements for the splitting of spouse contributions it does add up to a policy that recognises what I think we all know and understand. That the more you can promote policies both in relation to taxation, industrial relations, superannuation savings and so forth that are family friendly, recognise the fact that we are an ageing population and also recognise that with younger families the great debate is always the balance between work and family. And we need tax policies and savings policy and superannuation policy that facilitate the choice to be made particularly, but not only, by Australian women.
Finally, ladies and gentlemen, can I just on a personal note, thank all the members of the Queensland Liberal Party for the tremendous support, John Herron in particular, Bob Carroll, Bob Tucker both former Presidents of the Party, to all former executive members. The Queensland Liberal Party at a Federal level has given me tremendous help and tremendous support. And whatever happens on Saturday I';ll always be very grateful, but can I tell you I want to be back. I want to win on Saturday. I intend to win on Saturday and I';ll be back addressing you at gatherings like this for a long time into the future my friends. We work hard, try hard, put that extra bit of effort in and if we do that there is the real prospect that we can have a great and famous victory for Australia on Saturday the 10th of November.
Thank you.
(ends)