Coalition Supports Super Clearing House but Wants Fair Competition

March 10, 2010

Rudd Government claims that the Coalition was blocking its plans for a free superannuation clearing house for small businesses were an attempt to cover up yet another rushed policy, the Shadow Minister for Superannuation, Luke Hartsuyker, MP, said today (Wednesday).

The Government is proposing under the Tax Laws Amendment Bill a free clearing house to offer small businesses the opportunity to make a bulk payment on behalf of their employees which would then be dispersed to individual funds.  It would be run by Medicare.

“What the Coalition is trying to do is to ensure that the clearing house is run by the best possible operator and that this scheme doesn’t descend into chaos like the home insulation scheme,” said Mr Hartsuyker.  “We will move amendments in the Senate to ensure that the private sector has the opportunity to bid for this contract and it isn’t just handed to Medicare on a plate.  As usual when we offer to improve legislation, the Government claims we’re blocking it.  It’s just nonsense.

“The Government has not been able to explain why it awarded the contract to Medicare.  Treasury claimed risk was a factor but that does not amount to making a case for Medicare.  They have just made an excuse.  Medicare even admitted to the Senate inquiry that it had not even considered how many employers would use the facility.  This shows the Rudd Government is once again rushing an important measure to be seen to be meeting an election promise when it should be taking its time to make sure the scheme works.

“We don’t want to see employees’ superannuation payments in the same sort of chaos as we saw with home insulation and Green Loans.  The Rudd Government needs to listen, take time, and do the job properly.”

The Government, when in opposition, promised in 2007 that the clearing house would go to competitive tender.  The Senate inquiry is due to report next Monday.

 

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