Zhi Soon (Banks, Australian Labor Party) Share this | Hansard source

It is a pleasure to support the motion of my very good friend the member for Bennelong recognising the enormous progress this government is making in improving our superannuation system. As everybody in this place knows, Labor is the party that built superannuation and Labor is the only party that will protect it. This Labor government promised to strengthen the super system when we were elected, and we are delivering on that promise so that superannuation continues to serve its foundational purpose of providing a dignified retirement for all Australians.

This government has made massive strides. In the last term of the parliament, Labor legislated the purpose of superannuation and lifted the superannuation guarantee to 12 per cent. And, this term, we legislated payday super. Payday super is a fantastic landmark reform for our country. This reform will protect workers by tackling the issue of unpaid superannuation, which cost workers across our country more than $5 billion in the 2021-2022 financial year, according to ATO estimates. In a typical ATO investigation, a worker has lost nearly two years worth of contributions. For an average 35-year-old income earner, that equates to $32,000 less in retirement. This government's legislation requires employers to pay superannuation at the same time as the rest of an employee's salary and wages from 1 July this year, making it easier for employers and the ATO to track their payments and take action before they become unrecoverable.

Another significant reform is the government's move to pay superannuation on Commonwealth paid parental leave. Since 1 July last year, parents of newborn and adopted children have been eligible to have super paid on their parental leave. Around 95 per cent of Commonwealth paid parental leave flows to women, and the scheme is benefiting 180,000 Australian mothers each year, providing meaningful support to reduce the gender superannuation gap for women across a diverse range of circumstances and household arrangements. As the Super Members Council CEO, Misha Schubert, said of this reform, we're not taking baby steps here. This is a huge stride forward to tackle women's retirement inequality. The experts know this is a reform that will make millions of women thousands of dollars better off in their retirement and be particularly beneficial to low-paid and vulnerable workers.

Just a few weeks ago now, the government's Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill passed this parliament, providing more help to low-income workers. As a result of this government's ambitious agenda, the low-income superannuation tax offset will be raised from $310 to $810, and the eligibility threshold raised to $45,000 from 1 July next year. The timing of this change is deliberate, aligning with the third round of the government's cost-of-living tax cuts for every taxpayer. In fact, a recent analysis, again by the Super Members Council, shows that the changes to the LISTO would benefit more than 1.2 million Australians, including 9,321 hardworking constituents in my own electorate of Banks, making them an average of $438 better off, for a total estimated benefit of $4.1 million per year.

Not everyone in this place sees superannuation the same way. While those opposite continue to tell young people to raid their super and rob future selves as the solution to all the problems they've created, this government—this Labor government—sees super as the key to a secure and dignified retirement for millions of Australians. We will continue making reforms that will deliver on this deal for Australians and for communities across our great country.

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