Senator GALLAGHER (Australian Capital Territory—Minister for the Public Service, Minister for Finance, Minister for Women, Manager of Government Business in the Senate and Vice-President of the Executive Council) (14:58): I welcome the question on the government's modest change to the superannuation arrangements that we announced last week. Thank you very much for the opportunity. It is important that we explain it. The $3 million threshold strikes the right balance between incentives to save for retirement and strengthening the super system by making it more sustainable over time. The evidence is from the superannuation sector itself. ASFA estimates that, for a comfortable retirement at 67, you need $545,000 if you're a single person and $640,000 if you are a couple. A $3 million balance will be more than sufficient for an adequate retirement for most people for many years to come. Many parts of the tax system aren't indexed—for example, personal income tax levels. And, as I said, the former government lowered the contribution tax threshold, division 293, without indexation— Senator Canavan: A point of order on relevance: it was a very simple question about indexing the threshold. The minister hasn't got anywhere near that topic after a minute. Senator Wong: As the Senator got to his feet to raise the point of order, the minister was in fact talking about precisely that. I think there is no point of order. The PRESIDENT: The senator has gone to the issue of your question, Senator Canavan. I will continue to listen carefully. Senator GALLAGHER: In 30 years, Treasury projects that roughly only the top 10 per cent of earners will retire with superannuation balances of around $3 million or more. Opposition senators interjecting— Senator GALLAGHER: In 30 years time. That is the estimation of Treasury. I would say that this is a modest change to the 0.5 per cent of people that are coming in. Of the 80,000 affected, the average balance is $5.8 million. I would say again: this is a modest change we are making in response to having to deal with the budget repair that is required from the economic vandalism of your decade in government. The PRESIDENT: Senator Canavan, first supplementary.