Matt Gregg (Deakin, Australian Labor Party) Share this | Hansard source

I should know better than to listen to the member for Gippsland. I have to admit, I'm new to this place and I occasionally make the mistake of listening to members of the coalition. I mistake them for individuals who have credibility and make worthwhile contributions to debate. This particular bill is a perfect example of one where the coalition have absolutely nothing to contribute to the debate. They have an atrocious record on superannuation. They see it as a lucky dip for their own policymaking rather than as an essential part of the retirement framework of this country. The reality is: if we want the next generation to have a proper dignified retirement, we need to deal with housing, protect super and make sure that our institutions remain as strong and trustworthy as ever before.

This is one of the great legacies of the Labor Party. Superannuation for workers finally gave the working people of Australia their fair share of the nation's wealth. Anything designed to undermine that or to use it as a simple slush fund for taking over the consequences of coalition policy over a long time is completely unforgivable. We need to make sure that trust and confidence in the system can be preserved, and we need to get on with dealing with the fact that millions and millions of dollars have been shafted from workers over a long period of time. I will not stand here and allow any suggestion that there is anything insidious about the idea that the workers in Deakin or anywhere in Australia, and their millions of dollars in savings—it is billions if you take it to the total for Australia, $5.7 billion. The idea of trying to ensure that that shafting doesn't happen anymore should be a completely uncontroversial proposition. But, again, we have a little bit of the usual squabble and nuttiness that we have in this House.

In terms of the enforcement of these things, we need to make sure that, when superannuation is not paid, the compound interest that could otherwise have been earned from those contributions is also recovered as part of the regime. In the past, we have seen superannuation recovered at just the nominal amount. It's effectively stolen money because they have lost the real value of the superannuation contributions being made—the earnings that they would have received but for the failure to contribute. So these enforcement provisions and the penalties that sit within this legislation are eminently sensible.

Then we talk about the transition. The transitionary provisions contained within this legislation enable a period of time for business to adjust. The ATO have already given their draft guidance—I think it was on 21 October—which has made it very clear that they will be taking a facilitative approach to the enforcement of these new laws.

We're not out to get businesses. We're there to support them in transitioning their systems to ensure that this can be done right. This is not about punishing small businesses trying to do the right thing. The ATO has made that abundantly clear. We have made that abundantly clear. This is simply about making sure that businesses are supported and enabled to make the payments that are owed to their workers in a reasonably timely way so they can enjoy the benefits of their earnings and have that beautiful magic of compound interest work in their favour as they save for their retirements.

It's about ensuring a dignified and decent retirement for Australians. It's about making sure that the promise of superannuation is fulfilled. And it's about safeguarding the superannuation of some of our most vulnerable workers. We're talking about young workers for whom the loss of superannuation income has dire consequences—tens of thousands of dollars less in their superannuation if these failures continue to persist. We see differences in balances of $31,000, $32,000 and up to $35,000 if super isn't paid at my age, at around 35. It can have significant impacts on a superannuation balance at the end of a person's career.

As I mentioned before, it is not just at the end of a career. It is ensuring that these individuals continue to have the total and permanent disability insurance that they've signed up to, that they continue to have the income protection insurance and, in the worst-case scenario, that they have access to those funds on compassionate grounds, whether it be for emergency health care, for the funeral of loved ones or for the other reasons that are already provided for in legislation. This is the money of workers. They deserve to have it paid into their superannuation accounts in a timely way. It is what the entire system is for.

The proposition that this is part of some crazy cabal, as was suggested by the member for Goldstein last night, is as outrageous as it is foolish. It is absolutely terrifying that a key member of their economic team sees superannuation as some kind of sick conspiracy and has the very idea that superannuation is simply about increasing the money in the Labor Party coffers. By the way, this is a government that just passed laws capping the amount of money that can be put into coffers. This is simply about workers. The very notion of a piece of legislation being purely about benefiting employees seems to be shocking and outrageous to some in the coalition. We need to protect and safeguard this system. We are dealing with an issue that was identified not only by us but by reports commissioned by the coalition themselves. They know this was a problem, and they did nothing about it. We came here, stood up and made a number of changes to protect the sustainability and security of the superannuation system, and all we ask is that you just let us get on with it.

These matters are too important to continue delaying. Ten more years of delay on these things will result in the loss of millions and millions of dollars of superannuation savings. We need to get on with it. The sooner we pass it, the sooner business will have the certainty as to what's coming and the sooner they'll be able to prepare for the changes and be ready by the time this comes in in July next year. I commend the bill, and I express my complete dismay and contempt for the suggested amendments by the shadow Treasurer. I look forward to this essential reform becoming law.

Debate adjourned.

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