Daniel Mulino (Fraser, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

I rise today to speak in support of the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026 and the associated Superannuation (Building a Stronger and Fairer Super System) Imposition Bill 2026.

Firstly, I'd like to recognise the work of the Treasurer and the Department of the Treasury for getting this bill into parliament. This has been after an extensive round of consultations and work with a wide range of stakeholders over a long period of time. This is a complex set of reforms, and that is why we have taken the time to get this right. This is also a very important set of reforms, with much at stake, strengthening Australia's world-class superannuation system, making it fairer, more sustainable and better aligned with its core purpose of helping Australians achieve a dignified retirement. This bill delivers on that purpose.

This bill will strengthen the superannuation system by increasing tax concessions for workers on low incomes, by boosting the low income superannuation tax offset—LISTO. The bill will also ensure that concessions for individuals with large balances above $3 million are better targeted and more equitable. Schedules 1 to 3 of the bill address a clear and growing problem in the system. Tax concessions for very large superannuation balances are increasing in cost and becoming less sustainable. At present, super tax concessions cost the budget more than $60 billion per year and will exceed the cost of the age pension in the 2040s. The distribution of those concessions is skewed. Around 38 per cent of the benefit from super tax concessions goes to the top 10 per cent of income earners, and 55 per cent goes to the top 20 per cent. These concessions were intended to support Australians in retirement, not provide tax concessions for wealth accumulation or estate planning.

The legislation before the House better targets super concessions and reflects practical changes to the design and implementation of the original policy, which take into account more than two years of feedback. From 1 July 2026, the total concessional tax rate applied to earnings on balances between $3 million and $10 million will be up to 30 per cent, and earnings on balances above $10 million will be taxed at a concessional rate of 40 per cent. Balances below $3 million remain unchanged and will continue to be taxed at 15 per cent. Both thresholds—the $3 million and $10 million caps—will be indexed to maintain alignment with the transfer balance cap. Earnings will be calculated based on established income tax concepts and realised gains. Importantly, these changes also apply fairly to members of defined benefit schemes. At a super fund level, fund trustees will report the relevant earnings to the ATO, which will ensure the system remains transparent and efficient.

These are sensible reforms to concessional settings. One would think that, after such a lengthy consultation period and the government's willingness to work with all parties, the opposition would support these changes. After all, these reforms will affect less than 0.5 per cent of Australians with superannuation accounts in 2026-27, and the higher rate on balances above $10 million will affect fewer than 0.1 per cent. Unsurprisingly, those opposite seem to be more focused on the impact on this tiny cohort instead of celebrating that we are delivering a more sustainable system and delivering support to those who need it most.

That takes me to schedule 4 of the bill, which boosts the low-income superannuation tax offset, LISTO, and expands eligibility for this benefit. The Albanese government is delivering more help to low-income workers, including hundreds of thousands of women, young people and part-time workers who rely on fair superannuation contributions to build security for the future. From 1 July 2027, LISTO will increase by $310, rising to $810 as the maximum benefit that can be provided, and the income eligibility threshold will increase from $37,000 to $45,000. These changes ensure that low-income workers receive a fairer tax concession on their super contributions, consistent with the government's third round of tax cuts coming into effect in 2027.

What does this mean in practice? Workers will receive up to $810 per year in additional contributions to their superannuation account, with the average LISTO payment increasing substantially. Over a working life, this could mean up to $15,000 more at retirement, depending on an individual's income over their career. That's real money that makes a real difference. In 2027-28, because of these changes, 770,000 additional Australians will be eligible for LISTO, 490,000 people will receive a higher payment and a total of 3.1 million Australians will be eligible. Around 60 per cent of those beneficiaries will be women. In fact, more than 1.3 million Australians will benefit directly from these changes, including around 750,000 women and 550,000 young people under 30.

I'd like to acknowledge the tireless advocacy of the ACTU and its affiliated unions that represent their members, who work to keep Australia running every day. The change to LISTO will benefit over 100,000 sales assistants, more than 50,000 administrative workers and more than 50,000 aged-care and disability care workers. This will make a real difference to their savings and a real difference to their retirements. Let me put this into perspective: there are 14 times as many people who will benefit from the boost to LISTO as there are Australians with over $3 million in super. This is fairness in action.

These reforms, of course, are part of a much broader agenda. Since coming to office, Labor has strengthened the superannuation system in multiple ways. We are paying superannuation on paid parental leave for the first time, we've introduced payday super to ensure contributions are paid on time and we have increased the superannuation guarantee to 12 per cent, alongside legislating the objective of superannuation itself. Labor built Australia's superannuation system, and we remain committed to ensuring it continues to deliver for future generations—stronger, fairer and more sustainable than before. This bill delivers more help to low-income workers, makes concessions fairer and protects the long-term sustainability of the system on which millions of Australians rely. I commend the bill to the House.

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