Page 2887 - Week 10 - Tuesday, 13 August 2013
have seen it go up and down depending on the state of the market, and I suspect that over the coming years we will continue to see it go up and down, depending on the state of the market.
But it is certainly of concern that it is a big number, at $6 billion in the outyears. It is something the government needs to keep a weather eye on, and I am sure it will.
MR BARR (Molonglo—Deputy Chief Minister, Treasurer, Minister for Economic Development, Minister for Sport and Recreation, Minister for Tourism and Events and Minister for Community Services) (4.11): The budget retains the full funding of the territory’s unfunded defined benefit superannuation liability by 2030 as a key financial objective. The government is committed to the effective management and eventual elimination of the unfunded CSS and PSS defined benefit employer superannuation liabilities through our established funding plan.
Recognising this commitment, the annual amount of budget appropriation to the superannuation provision account has been increased, starting in 2013-14, by $192.95 million over this budget and the forward estimates. This means that the projected annual benefit cash flow payments to ComSuper from the superannuation provision account will be matched by appropriate funding, thereby allowing the remaining superannuation provision account investment assets to grow, with all earnings unencumbered by the management of cash flows.
It is important to put on the record that the performance of the superannuation provision account investment assets remains on target, with the target return objective being CPI plus five per cent per annum, net of fees. As I indicated just after question time, in the 2012-13 fiscal year it achieved a return of 16 per cent. It has had an annualised return of CPI plus 4.6 per cent over the past 17 years, so it is a pretty good long-run experience, shadow treasurer.
On current settings, the objective of fully funding the territory’s unfunded defined benefit superannuation liability by 2013 is on target.
I commend the appropriation to the Assembly.
Proposed expenditure agreed to.
Proposed expenditure—Part 1.5—Territory Banking Account—$214,000 (capital injection) and $66,620,000 (payments on behalf of the territory) totalling $66,834,000.
MR SMYTH (Brindabella) (4.13): The Treasurer said in his speech that this was a budget for a rainy day. You are normally prepared for rainy days before they arrive. It is that old adage about fixing the roof when it is raining; it is particularly dangerous.
Let us look at the territory banking account. For those that have it, it is on page 260 of budget paper 3. For a man who is supposedly prepared for a rainy day, there is not a great deal in the account. The estimated outcome for this year was meant to be $343 million. The estimated outcome is $45 million, a reduction of 87 per cent. Sorry, in