12-August-2010
Portfolio Media Releases, The Economy, Community, Funding
The Coalition stands by its costings and we stand by our commitment to veterans.
This is a measure that Labor promised before the 2007 election – and abandoned.
Labor’s claim is a distortion and a manipulation of both the Coalition’s commitment and the advice the Government claims it is using.
Labor’s press release refers to the Matthews Review which was a review in 2008 of seven Australian Government civilian and military defined benefit superannuation schemes.
The conclusions in the published report are for the seven schemes in total and not for each scheme.
The advice from the Government Actuary attached to the press release shows that under a change in indexation, additional total expenditure rises from a low level in the early years.
This is in accordance with the Coalition estimate of the cost in the forward estimates.
The Coalition has also taken into account that over time the cost of the scheme increases. For this reason, we will be making further contributions to the Future Fund.
The Future Fund was established by the Coalition when last in government to meet future superannuation liabilities. During Labor’s term in office, contributions to this fund have been limited, while other funds established by the Coalition have been pillaged to pay for Labor’s reckless spending.
Unlike Labor, the Coalition can be relied upon to meet its commitment to make these contributions and further build up the Future Fund.
Following the leak earlier this week of confidential Treasury advice, the Coalition has had its concerns renewed by the Minister for Veterans’ Affairs’ release for political purposes of confidential internal advice prepared in 2008.
We’re standing up for veterans. The veteran’s community is politically active, vocal, observant and astute when it comes to these matters. Labor’s attempt to deny veterans the indexation they have demanded for years will not be ignored or forgotten.
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Media Contact: Cameron Hill on 0408 239 521