The Labor Party reprimanded the government for abandoning a central element of its pension reforms, Coalition confirmed its intention to adopt green amendments that maintain automatic life insurance coverage for young workers.

The Protect Your Super Coalition package aims to save workers up to $ 2.6 billion by eliminating automatic life insurance premiums for workers under age 25 and savers whose balance is less than $ 6,000. $, while consolidating useless duplicate superannuation accounts through the Australian Tax Office.

After the Australian first reported Senator Peter Whish-Wilson confirmed to Guardian Australia that the coalition had gone to the party and was now "confident" to support all of the Greens' amendments.

The Greens' amendments would maintain the underwriting of optional life insurance for young and low-paid workers, neutralizing one of the central elements of the original bill while maintaining other provisions that would consolidate the savings made.

The Minister of Finance, Mathias Cormann, said Thursday in the Senate that the Coalition would accept the amendments of the Greens "to facilitate the adoption of this bill and allow the adoption of essential measures July 1".

These include capping at 3% per annum for accounts with a balance of less than $ 6,000 and removal of exit fees on all super accounts, which Cormann says would be "to the great benefit of all Australians.

"Even though we can not get 100% of what we want to legislate, we guarantee the adoption of what we can."

Cormann said the coalition "would separately seek to continue" its plan to make life insurance coverage an option for young workers, a sign that it would reintroduce the measure if it got enough cross-votes or if she tried again after the elections.

Chris Bowen, the treasurer of the shadow, said earlier that "after months of high wind, the Liberals are about to announce an agreement with the Greens to empty the centerpiece of their legislation" .

"They said it was vital to protect the super young members and now they are making their own bill!"

Chris Bowen
(@Bowenchris)

After months of bragging, the Liberals are about to announce an agreement with the Greens to clear the centerpiece of legislation Protect Your Super – they said it was essential to protect the super-youth members and now they are launching their own bill! @JoshFrydenberg you are all talking pic.twitter.com/9xIHe1CBeC


February 14, 2019

Workers offered to support the bill subject to amendments in order to maintain the underwriting of life insurance to workers in high-risk industries, and provided their members with the savings lost in a month.

Whish-Wilson told the Senate that stakeholders in favor of the removal of automatic life insurance – such as the Grattan Institute and the Productivity Commission – had good intentions but were dealing with the issue. 39, average impact of costs on workers.

He added that the Greens had insisted that vulnerable people, like young blue-collar workers on construction sites, benefit from an opt-out cover because "no one needs a insurance as long as it does not need it ".

Whish-Wilson told Guardian Australia that the government backed the Greens' amendments on the merits because they were "pretty surgical and very precise" and refused to trade horses or make any other concessions.

Stirling Griff of the Center's Alliance told the Senate that the small party would support the bill but was "disappointed" by the fact that it took the government so long to introduce a bill.

The reform was announced for the first time by former Minister of Financial Services Kelly O'Dwyer in the 2018 federal budget.