Page 3167 - Week 09 - Tuesday, 20 August 2019
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superannuation entitlements of past and current ACT public service employees who are members of the Australian government’s commonwealth superannuation scheme and public sector superannuation scheme.
At present, the superannuation provision account recognises a defined benefit superannuation liability for over 35,600 past and current ACT employees. The annual budget appropriation to the provision account is used to fund the territory’s annual employer superannuation liability to the Australian government. The provision account paid $256 million in superannuation benefits to the Australian government in 2018-19, and is estimated to pay $290 million in 2019-20. Meeting these liabilities is a significant annual expense for the ACT budget, and rightly so when it contributes to the quality of life in retirement for so many current and former ACT public sector workers.
The government remains committed to the goal of fully funding the future defined benefit superannuation liabilities, as this will safeguard the retirements of the ACT’s public sector workers as well as supporting the broader sustainability of the territory budget.
The past year has been one of ongoing volatility in global financial markets, and we have seen the domestic money market and bond interest rates fall to historic lows. This has created a more challenging investment market environment. Considering the outlook for returns over the next decade, the government acknowledges that a concerted effort will be needed to achieve our goal by 2030. But incorporating the investment return outcome for 2018-19 of 7.7 per cent, the superannuation provision account portfolio will have generated a nominal investment return of 7.8 per cent a year, or CPI plus 5.3 per cent a year, over the past 23 years. It is important because this is above the current long-term investment return objective. Managing the long-term liability and working towards fully funding it is a long-term project, and we will continue to set our policies in each annual budget in that long-term context.
I commend this part of the appropriation bill to the Assembly.
Proposed expenditure agreed to.
Environment, Planning and Sustainable Development Directorate—Part 1.10
MRS JONES (Murrumbidgee) (2.50): In the absence of Ms Lawder, I will speak to this and heritage. I foreshadow that I may need the extra 10 minutes. The recent environment estimates hearings covered a wide collection of subjects. It is confusing and incongruous that environment is grouped with heritage and planning and sustainable development, when each area spans energy policy through to the natural environment. Environmental concerns started on day 1 when several community groups raised their concerns. In particular, Landcare ACT, represented by Dr Maxine Cooper, outlined their concerns regarding the uncertainties around funding and the need for continuous funding beyond annual offerings.
The Canberra Liberals value the work that Landcare ACT does through its catchment management groups—Junior Landcare, Frogwatch, and Waterwatch—and the replanting of grasslands, and the protection of Black Mountain. The list is endless.
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