The Hon. M.J. ELLIOTT: On behalf of the Democrats, I support the second reading of this Bill. It amends the Superannuation Act 1988, in particular the amendments introduced in May 1993 in relation to special superannuation benefit options for those who accept a voluntary separation package (VSP). Currently under the 1993 amendments, these special options can be accessed in addition to the right to preserve the accrued benefit until age 55.

This situation is attractive to many. However, the basis used to calculate lump sum benefits sees the overall attractiveness declining. This Bill will allow people aged 45 or older to opt for the immediate payment of a pension, which will be paid at the level of the actual accrued pension at the time. The higher levels of employer subsidy have been extended to increase the lump sum benefits. The Bill also proposes that a component of lump sums, enough to satisfy the superannuation guarantee, be preserved to age 55. I note that this measure is supported by both the Superannuation Board and by the relevant unions and, for that reason, the Democrats support the Bill.