David Moncrieff (Hughes, Australian Labor Party) Share this | Hansard source

Superannuation plays such an important role in securing the financial wellbeing of Australians while also making a tremendous contribution to investment in the Australian economy. Superannuation has provided modern Australians with the financial independence that would have been unimaginable to any of the generations that preceded them. It's a system that has changed lives for the better and it's a system built by Labor.

The Treasury Laws Amendment (Supporting Choice in Superannuation and Other Measures) Bill 2026 builds on that legacy and expands on the financial independence that the superannuation system has provided to modern Australia. The measures in this bill support Australians where they are in their lives, whether they're starting a new job, saving for retirement, running a small business, building a winery, hosting a global sporting event, investing across borders or donating to a cause they believe in.

On this side of the House, we believe Australians deserve the choice and the confidence to make economic decisions with fairness and transparency at the forefront. This is particularly felt when we look at superannuation. Superannuation is one of the great Australian reforms. It's a Labor reform. It was built by a Labor government in partnership with working people and, for more than three decades, it has quietly transformed retirement in this country. Labor always has been and always will be the party of superannuation because we understand what it represents. It is not just something people ignore when they're working. It represents dignity in retirement, the difference between scraping by and living with security after decades of hard work.

Let's be honest about the history of superannuation here. Those opposite opposed compulsory super at its creation. They delayed increases to the super guarantee. They described it as a burden. They tried to water it down. We lifted it to 12 per cent; they froze it. We legislated the objective of superannuation so it cannot be quietly redefined; they warned of catastrophe. We are paying super on paid parental leave so that women are not penalised in retirement for taking time out to raise children; they voted against it. So, when we speak about strengthening superannuation, we do so with credibility. This is not an afterthought for us. It is core to who we are, and this bill continues that work.

Think about the moment when someone starts a new job. It is exciting, but it can be stressful. There's paperwork and there are tax file numbers, bank details and emergency contacts. There are systems to log on to, there are forms to sign and somewhere in that process is a choice about super. In that moment, superannuation is often reduced to a tick box—a choice that compounds over 10, 20 or 40 years, a choice that can mean the difference between security and stress in retirement.

Under earlier reforms, stapling was introduced so that workers would remain connected to their existing super fund when they moved jobs, because for too long every time Australians moved jobs they automatically ended up with a brand new super account. That was an important step. It reduced the explosion of unintended duplicate accounts that were eating away at retirement savings through multiple sets of fees and insurance premiums. But the system can work better.

Right now, too often, people are asked to choose a fund without clearly seeing their existing one in front of them, or they are presented with options in a way that is not neutral. We know that we can do better to streamline the choice-of-fund process, with changes like the one in schedule 1 of this bill, which allows employers or their onboarding providers to request an employee's stapled fund details from the ATO earlier in the process. That means that, when a worker is completing their onboarding, they can see their existing fund details clearly and make an informed choice—not a rushed choice, not a choice made in confusion but an informed choice—with all the relevant information available.

Let's be clear: choice remains. Workers can choose any eligible fund. We are ensuring that that choice is based on transparency, not confusion, because superannuation is not a retail impulse purchase; it's a lifetime investment. A few percentage points in fees compounded over decades can mean tens of thousands of dollars in retirement.

During a review of earlier reforms, it was discovered that some onboarding software providers were being paid to promote specific super products to new employees during the onboarding process, sometimes products linked to the software provider itself. Reflect on that. A worker is starting a new job, they're required to provide their details, they are navigating unfamiliar systems and, in that moment, they are showed paid promotions for superannuation products. That's not a level playing field. That's not informed consent. That is commercial influence at one of the most vulnerable points in the process.

Superannuation is not a streaming service. It's not something that should be marketed to someone while they are navigating the first day of employment, so we're putting a stop to it. This bill introduces a targeted ban on superannuation advertising during onboarding. It's the end of stealth marketing at the point of employment. It's the end of commercial steering disguised as administration. Employees will see their stapled fund and they will still see the employer default fund. Certain MySuper products can be displayed if they pass the annual performance test, are advertised by an unrelated party and are accompanied by clear disclosures.

When a worker is providing their super details to an employer, that space should be free from inappropriate influence. That is what it means to govern in the public interest. Last year, this parliament passed the payday super legislation. That reform is a once-in-a-generation change to fix unpaid super. The Australian Taxation Office estimates that $5.2 billion in super went unpaid in 2021-22. That is $100 million every single week that workers earned but never received. Let's reflect on that. Every week, $100 million of Australians' retirement savings was simply not paid out.

Unpaid super disproportionately affects younger workers and those in insecure work. Casual employees, part-time workers, people in industries with high turnover—these are Australians who can least afford to miss out on retirement savings. In a typical ATO investigation of an unpaid super case, a worker has missed out on nearly two years of contributions. For an average 35-year-old, failing to recover that money could reduce their retirement savings by around $32,000 in today's money. If an employer goes bust and super is never recovered, the impact is even worse. For that same 35-year-old, their retirement balance could be more than $90,000 worse off in today's money. That's not an abstract concept; that is real money. It could be a future home deposit. It could be someone's medical costs. It could be someone's dignity in old age.

From 1 July 2026, under payday super, employers will be required to pay super at the same time as wages, rather than quarterly. Super contributions must be received by the employee's fund within seven business days of payday. That change does two things: it makes it easier for employees to track their super in real time and it allows the ATO to detect missed payments earlier, before debts spiral out of control and become unrecoverable. The legislation also strengthens the super guarantee charge. Under the new framework, if an employer fails to pay super in full and on time, the charge applies for each payday missed. It includes notional earnings, compensating employees for investment returns they missed out on due to late payment. It includes an administrative uplift, reflecting the cost of enforcement and incentivising voluntary rectification, with reductions available for employers who come forward and have a good compliance history. It includes choice loading—an additional penalty if the employer fails to pay into the employee's chosen fund. For those who persistently fail to pay, even after the ATO has raised a charge, penalties of up to 50 per cent of the unpaid amount can apply. These are serious consequences because unpaid super is a serious issue. Super is workers' money, and under this government we are making sure that it is paid on time every time.

These reforms do not stand alone. They sit alongside the expansion of the performance test, from around 80 products to more than 800, driving accountability and transparency across the system. They sit alongside the Financial Accountability Regime and stronger reporting standards. They sit alongside paying super on paid parental leave. Piece by piece, reform by reform, we are strengthening this system, and we do so because we understand something fundamental: superannuation is deferred wages. It's not a gift from the government. It's not a bonus from employers. It belongs to the people who earned it, and it deserves to be protected as fiercely as wages in a pay packet.

When you look at schedules 1 and 2 of this bill, alongside payday super, a clear theme emerges. We are strengthening super at the point of choice and at the point of payment. We are protecting workers when they start a job and we are protecting them when they get paid. For small businesses across communities like mine in southern Sydney, certainty and clarity now reduce headaches with compliance later.

These reforms provide the right information at the right time. They are sensible, modern changes that reduce friction and help ensure our superannuation system runs smoothly for employers and employees alike. This is what responsible economic management looks like. Each reform strengthens the system. Each reform protects workers. Each reform reflects a simple belief that retirement security is not a luxury; it is a right earned through hard work. It is about understanding that fairness and growth are not opposing forces; they are mutually reinforcing. Those opposite will look at superannuation and see a cost to the system. We look at it and see dignity. They look at consumer protections and see regulation. We see we look at them and see fairness. They will look at global events and see tax concessions. We look at them and see jobs, participation and national pride.

This bill is another step in building an economy that rewards work, protects savings and positions Australia confidently on the global stage. Australians want to know that when they work hard, their retirement savings are protected. They want to know that the system is not quietly chipping away at their balance through unnecessary duplication. They want to know that when they start a new job, they are not being funnelled into a product because someone paid for placement in an onboarding portal. They want fairness. They want transparency. They want confidence. This bill delivers that. It strengthens the moment of choice, it protects the integrity of the process and it reinforces a reform agenda that puts workers first.

Superannuation is one of the great Australian achievements. It did not happen by accident. It happened because a Labor government believed that working people deserved more than the bare minimum in retirement. We are determined to ensure that that belief continues to shape policy, protect workers and strengthen retirement security for generations to come. I commend the bill to the House.

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