Cassandra Fernando (Holt, Australian Labor Party) Share this | Hansard source

I rise to speak in support of the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026. Labor is the party of superannuation. It was Labor prime ministers Bob Hawke and Paul Keating who had the courage and foresight to create universal superannuation through the Prices and Incomes Accord. At the time it was a bold and contested reform, but it was grounded in the simple belief that working Australians deserve dignity and security in retirement—not uncertainty, not poverty and not dependency.

What began as a three per cent employer contribution has, through steady and responsible reform, grown to a 12 per cent superannuation guarantee as of 2025. That increase represents one of the most significant structural improvements to retirement incomes in our nation's history. For communities like mine, in Holt, this is not abstract policy; it is real life. Holt is one of the youngest and fastest growing electorates in the country. Families in Cranbourne, Narre Warren South, Hampton Park, Lyndhurst, Clyde, Tooradin and Pearcedale are working hard to build a better future. Many are first home buyers. Many are migrants who came to Australia seeking opportunity and stability. They are young parents balancing work and family. They are nurses, aged-care workers, retail staff, warehouse employees, early childhood educators, construction workers and small-business operators. They are not thinking about complex tax structures. They're thinking about paying the mortgage, covering childcare costs and making sure their kids get ahead.

Superannuation is about making sure that, when those hardworking Australians reach retirement, they can do it with dignity. This Labor government has acted to make the superannuation system fairer and stronger. One of the most significant reforms we have delivered is paying super on paid parental leave. For too long, women have retired with significantly less super than men—currently around 25 per cent less on average. That gap is not a coincidence. It reflects structural inequalities, time taken out of the workforce to raise children, part-time work, lower average wages and unpaid care responsibilities. In Holt, where so many young families are growing, this reform will make a tangible difference. A mother taking time off to care for her newborn should not be financially penalised decades later. By paying super on paid parental leave, we are recognising that care work has economic value and we are ensuring women are not left behind for starting a family. Over a lifetime, this reform will leave women tens of thousands of dollars better off in retirement.

We have also legislated an objective for the superannuation system, something that was first proposed in 2016 by the Turnbull government but never legislated. The superannuation objective strengthens the system against short-term political interference and ensures that any future government seeking to change super must justify those changes against a clear statutory objective. That objective is straightforward—to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way. Every reform in this bill is consistent with that principle.

We are also implementing payday super. Historically, some workers have waited months for their superannuation to be paid. Some have discovered years later that it was never paid at all. That is unacceptable. In parts of my electorate, such as Cranbourne West, we have major industrial and commercial precincts. The overwhelming majority of businesses do the right thing, but honest employers should not be undercut by those who delay or avoid paying workers their super. Payday super will ensure that super contributions are paid at the same time as wages. This will reduce unpaid super, improve compliance and allow workers' balances to begin compounding earlier. For a 25-year-old worker, earlier and more frequent contributions can mean thousands of dollars more at retirement. This is the power of compounding, and it is why timely payments matter.

We are also strengthening transparency and accountability in the system through improved reporting requirements and mandatory service standards. Australians deserve confidence that their retirement savings are being managed efficiently and responsibly. Australia's superannuation system is globally recognised as world leading. It is already the fourth largest pool of pension assets in the world, and it is projected to become the second largest by 2031. This is not an accident; it is the result of deliberate long-term policy design. Australia is the only OECD country where age-pension spending as a share of GDP is projected to decline over the long-term, from around 2.5 per cent today to approximately 2 per cent by 2060. By contrast, the OECD average for public pension spending is around 9.3 per cent of GDP. That is long-term fiscal sustainability.

This is Labor's responsible economic management. But maintaining that sustainability requires long-term planning. Time and time again we have seen the coalition use superannuation to fix short-term political issues rather than as a long-term economic asset. Under the previous coalition government, approximately $36 billion was withdrawn from the superannuation accounts through the COVID early-release scheme. While many Australians faced hardship during that period, the long-term impact of those withdrawals is significant. Thanks to the coalition, A 30-year-old who withdrew $10,000 could be more than $150,000 worth worse off in retirement. Hundreds of thousands of young Australians substantially depleted or emptied their super balances. Superannuation is not designed as a short-term stimulus tool. It is deferred wages, savings set aside to provide income in retirement. Treating it as a quick fix, as the Liberal Party does, undermines its purpose.

The superannuation system is built on a deal between workers, employers, unions and government. Workers contribute through deferred wages. Employers contribute through the superannuation guarantee. Government supports the system through concessional tax treatment.

The concessional 15 per cent tax rate is fundamental. It incentivises saving and allows balances to grow more quickly than they would in a standard savings account, but concessional must be sustainable and targeted to the system's objective. Today, fewer than 0.5 per cent of Australians have a super balance above $3 million. For those individuals, even under minimum drawdown rates, they would be expected to receive $150,000 per year tax free in retirement income. Under this bill, there are no changes to tax arrangements for balances under $3 million. Earnings on balances above $3 million will be taxed at 30 per cent. For balances above $10 million, the rate will be 40 per cent—still below the top marginal income tax rate of 45 per cent. These changes are modest. They affect only the wealthiest fraction of account holders and they ensure that superannuation remains focused on delivering retirement income, not functioning as an unlimited tax advantage wealth accumulation vehicle.

Importantly, the revenue raised from these reforms will strengthen support for low- and middle-income workers. We are boosting the low-income super tax offset, the LISTO. We will increase the eligibility threshold to $45,000 and lift the maximum payment to $810. This will benefit more than three million Australians. In Holt, that includes early childhood educators in Narre Warren, retail workers in Cranbourne, hospitality staff in Hampton Park and aged-care workers right across my community. These are the people who keep our local economy running. Many are women. Many work part time. Many earn modest incomes while juggling family responsibilities. Analysis from the Super Members Council suggests that women will make up around 60 per cent of those benefiting from this reform, with some projected to be up to $60,000 better off in retirement after their working lives. That is real progress in closing the retirement gender gap. These reforms are about fairness. They reduce excessive tax concessions for the wealthiest 0.5 per cent. They strengthen retirement savings for millions of low-income workers. They protect the long-term sustainability of the system. They keep superannuation true to its purpose, delivering income for a dignified retirement.

I want to acknowledge the leadership of the Treasurer, Jim Chalmers, and the Assistant Treasurer, Daniel Mulino, through their work on this legislation. This bill reflects Labor values: fairness, responsibility and long-term thinking. In communities like Holt, where families are building their futures, where young workers are starting their careers and where parents are planning for their children's security, superannuation matters. It matters that the system is strong, it matters that it is fair and it matters that it is sustainable for generations to come. I commend this bill to the House.

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