Superannuation should be voluntary for Australians earning less than $50,000 and not rise to a 12 per cent guarantee, a new Liberal senator says.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Andrew Bragg used his first speech to parliament on Wednesday to call for a major overhaul of retirement savings.
The NSW senator, who spent eight years working in superannuation at auditor Ernst and Young, said the system had made unions, banks and insurers richer than ever.
"Superannuation is a classic case of vested interests triumphing over the national interest," the 35-year-old told parliament.
"The fees are too high, there is not enough competition. There is insufficient transparency."
He said the case had not been made for the legislated rise in the super guarantee to 12 per cent, which the government insists it has no plans to scrap.
"I do not believe the system is working for Australians," Senator Bragg said.
"I would change direction: super should be made voluntary for Australians earning under $50,000.
"Taxpayers could simply tick a box to get a refund when filing an annual tax return."
Senator Bragg said super was making home ownership much harder for lower-income people.
He praised the Morrison government's tax cuts and urged the coalition to go further.
"Australia's direct taxes on people and companies are still too high by international standards," he said.
"We ought to look again to reducing the direct tax burden on workers and enterprise."
Senator Bragg also devoted a significant chunk of his speech to advancing the case for constitutional recognition for indigenous people and a voice to parliament.
He took aim at claims from conservative MPs that a voice would act as a de-facto third chamber of parliament.
"I will walk with indigenous Australians on this journey," Senator Bragg said.
"A First Nations Voice would not be a third chamber. It will not have the standing, scope or power of the Senate or the House of Representatives."
The former business council executive director said Australia needed the world, rejecting the United States' trade war with China and talking up foreign investment.
"We cannot afford protectionist risks that may be available to our great friend across the Pacific Ocean," he said.
Prominent moderate Liberals including Treasurer Josh Frydenberg and Communications Minister Paul Fletcher sat in the chamber to watch his speech.
Australian Associated Press
