Julie-Ann Campbell (Moreton, Australian Labor Party) Share this | Hansard source

Globally, twice the rate of international peers, super is a great Australian success story. It gives millions of everyday Australians the chance to live the life they want in retirement, while saving the budget money over the long term. It's a win-win. I am incredibly proud to be part of a Labor government that continues to bolster it and make it fairer for hardworking Australians. Make no mistake about it: we are the envy of the world when it comes to our superannuation system. We are a world leader in securing financial independence for all Australians.

We need to remember what the coalition said at the time super was first introduced. What they said was that we'd all be ruined. They said that this was something that would collapse our economy. They said that it wouldn't work. It was the same thing they said when we introduced Medicare: that it wouldn't work, that it wasn't okay, that we'd all be ruined. They said something incredibly similar when it came to an increase in the minimum wage just recently. When the Prime Minister said that he would increase the minimum wage, and he said 'Absolutely,' those opposite thought that it was a joke. Those opposite thought that it wasn't possible. We on this side of the House say that not only is it possible; it makes the lives of Australians better, it makes their retirements more dignified, and it makes the system fairer.

This is a long-overdue reform. Payday super is not just a policy change. It's a fundamental fix to a broken system that has allowed billions in superannuation to go unpaid. When it comes to superannuation, this is not a bonus. It's not an extra. It's not something that comes on top of your wage. It is part of your wage, and because of that it is an entitlement. It's something that you deserve, not something that you should have to scrap or scrape for. It's something that you have earned.

The ATO estimates that $5.2 billion in super went unpaid in 2021-22. That is $100 million per week—every week, $100 million gone, $100 million that workers earned but were never paid. That's not just a number. That's people's futures being short-changed. That's their lives being short-changed. That is the hard work, the toil, that they have put in day in, day out that has not been given to them.

The Treasury Laws Amendment (Payday Superannuation) Bill 2025 will ensure that workers actually receive the super that they are owed when they are owed it. If you're a teacher grading papers, putting together a lesson plan, you deserve your super. If you're an early childhood educator like the ones looking after my daughter and the many children who go to day care and kindy every day, you deserve to be paid your super. If you're a sparky working on a big project or on someone's home, you deserve to be paid your super. If you're a nurse—many of whom do shift work—looking after people when they're sick, you deserve to be paid your super. If you work in retail at the checkout, you deserve to be paid your super. It doesn't matter what profession you are in, everyone deserves it, because they've earned it.

Unpaid super particularly hurts younger Australians and those in insecure jobs the most, the ones who can least afford to lose out on super payments. ATO investigations show that a typical case of missing super can equate to two years worth of contributions. It's a big impact and it's a big impact on those who are the most vulnerable in our society. For an average 35-year-old, that could impact their retirement savings by $35,000 worth of contributions. We're talking about a big impact. We're talking about big money. We're talking about the kind of numbers that can change people's lives and make them better or, without that money, make them worse. Another way young people are losing out is when a business goes bust. The same 35-year-old could lose $90,000 off their super.

When we talk about super, it's important to remember the concept of compounding interest. It's something that we all learned in primary school, and it's something that, when it comes to super, means that even the smallest changes, even the smallest number, the smallest amount that you have not been paid for the super that you've earned now, can have an enormous impact when it comes to your retirement. That's what this bill is all about. It's about making sure that there is fairness, that you get what you deserve, that you get what you earn, that you get what you are entitled to when it comes to superannuation.

From 1 July 2026, employers will be required to pay super at the same time they pay wages—not quarterly, not later, not never, but on payday. Contributions must reach the employee's fund within the seven business days. It's simple, but it's an effective change. Workers can check that they have been paid. The ATO can match missed payments early, before they become unrecoverable. And don't forget we are talking about $5.2 billion here in unpaid super. The upshot is a secure future, easier to track your pay when it comes to superannuation and the ability to plan for your future.

The bill increases the superannuation guarantee charge. This is the penalty employers face when they don't pay super on time. It will now apply for each and every payday. Updated superannuation guarantee charges means that notional earnings to compensate for workers lost investment returns will be included. It means an administrative uplift, additional charges to reflect enforcement costs and inspire employers to voluntarily rectify, and choice loading penalties if employers ignore their employees selected funds. If someone didn't pay you your wage, there would be consequences. If someone doesn't pay you your super, there must be consequences. And if they still don't pay, employers will face penalties of up to 50 per cent of the unpaid amount. It's a big stick for a big problem. Labor wants employers to fix mistakes quickly and ensure workers are compensated if those mistakes happen. And the ATO will use Single Touch Payroll data and match it with super funds data to detect missed payments quickly—almost in real time.

When we talk about updating legislation, when we talk about rectifying challenges, we need to use the full force of what we have in terms of technology. We need to make sure that we are using the digital space for good, and we are using it to make our systems fairer. That's what this is about. Single Touch Payroll data is already reported, and this data-matching capability means earlier intervention, it means fewer unrecoverable debts and it means better outcomes for working people in this country.

To support this rollout, the government is investing more than $400 million. This is $400 million to get more than $5 billion back into the pockets of the hardworking Australians who have earned this money—a very small price to pay for peace of mind, for entitlement to what they earn now for their future and for their dignity in retirement. Importantly, the ATO will take a facilitative approach in the first year by helping employers who genuinely tried to comply, even if they face technical challenges. This is about making sure that we help small businesses, that we help businesses who are trying to do the right thing to do the right thing.

This reform also benefits employers by aligning with payroll. It reduces the end-of-quarter administrative pressure and the risk of large liabilities building up. We are trying to ease the burden by smoothing out some of the challenges and liabilities, but also, again, by making it fair. And we have undertaken stakeholder feedback. Treasury consulted on the draft legislation from March to April 2025, receiving 167 submissions and engaging with more than 200 stakeholders across roundtables, bilateral meetings, talking with our communities, talking with business, talking with people about what this will mean for them. There is absolutely strong support for aligning super payments with wages—that much is very clear. The bill reflects stakeholder feedback in terms of IT system readiness, hence the support for a compliance approach and seven business days to pay.

Last night I talked about the fact that superannuation is a great Labor reform. It sits alongside the dismantling of WorkChoices. It sits alongside the introduction of Medicare, and, for the minister in front of me, perhaps, one day it will sit alongside the introduction of our great batteries program. It sits alongside those because, at its heart, it's about dignity for working people. At its heart, it's about getting Australians what they deserve. At its heart, it's about setting people up for their future. And there is no doubt that it is vital to act on this now.

Passing this legislation promptly gives employers, payroll providers, super funds and the ATO the time that they need to prepare for the July 2026 date. Every delay means more workers missing out and more money lost that could have supported their retirement, and Australians are too important for that to happen.

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