Julie-Ann Campbell (Moreton, Australian Labor Party) Share this | Link to 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.

Matt Gregg (Deakin, Australian Labor Party) Share this | Link to this | Hansard source

The amount of unpaid super owed to workers in my electorate of Deakin was $31.4 million, according to analysis by the Super Members Council in 2022-23. The analysis also highlighted that that's $1.4 billion of lost super for workers in my home state of Victoria and a whopping $5.7 billion for workers across Australia.

We're talking about a lot of money earned by workers owed to workers; it's not sitting in their superannuation accounts. It is an unacceptable and unsustainable situation. This is a problem we've known about for a long time. There has been report after report, including the 2020 review into retirement savings initiated by the coalition, and likewise. This is a well-known problem. The risks are increased when we're talking about small businesses with low turnover approaching insolvency and workers who are young and vulnerable, and we've seen the consequences play out in a very real way.

Not only do we not have the wonderful magic of compound interest playing; we also have a significant loss of insurance coverage, which we've seen many cases of—for example, people not having the permanent disability or income protection insurance that they would ordinarily have, because contributions that were lawfully required to be made weren't paid. We've also seen situations where a person who may be eligible to withdraw their superannuation on compassionate grounds, such as upon the death of a spouse or dependent, have not been able to access super, because, once again, the money simply hasn't been put into the account. This isn't money that is given as a gift to workers; this is money earned, owed and part of their remuneration—and, unfortunately, on a mass scale, hasn't been received. These are debts that need to be claimed in a better, more efficient and effective way, and this bill provides that means.

This bill is the commonsense approach. When I talk to people in my electorate, they wonder why the it hasn't already happened and why it isn't already the case that superannuation has to be paid into the worker's account at the same time as they receive their wages. After all, remuneration isn't a business credit facility. It's not there as a loan to pay for other expenses. It is a debt owed to workers. This legislation sensibly adjusts that, and I welcome the fact that at least that principle has been adopted by many people in the coalition.

Unfortunately, as I walked past this chamber last night I overheard the contribution of the member for Goldstein, who decided to pop on the tinfoil hat, pull out the coathanger and start speaking in fluent crazy. He went on and on about serfdom and the fact that superannuation was some kind of a conspiracy by the Labor Party to line its own pockets. He said the pre-1992 position on superannuation was somehow more logical. Why?

Superannuation did the daring thing of saying that working people had a right to a share in capital wealth. It was the idea that it wasn't just the wealthy or those lucky enough to be with certain employers who got the benefits of superannuation but every single wage earner in the country. It was one of the most important reforms to working life in the twentieth century—and they simply don't get it.

I wouldn't be so bold as to presume that it's Liberal Party policy. We all know for a fact that the Liberal Party and the coalition have many different policies simultaneously at the moment, because they can't seem to agree on anything. But one of the saddest things about the member for Goldstein's contribution was that, if that is the sensible centre of the Liberal Party, God help us all! It shows that even their moderates have jumped onto the crazy train, not knowing where they're going. We find that superannuation remains something that causes them heartburn. They hate the idea that workers are in the system, somehow getting their place in the boardroom and taking their opportunity to take their fair share of the wealth of this great country. Superannuation is essential because it is compulsory—the fact that we are together saving for our retirements. We're not relying on the aged pension, which has never provided the quality of life we expect and hope for for our older citizens. In order to live a comfortable and decent life as an older person, as we live longer, as we grow as an ageing population, it's more essential than ever that we look after our superannuation system, we jealously guard it and we make sure all Australians have access to the dignified retirement that they deserve.

Unfortunately, we've seen some immature debates around what superannuation is for. Is it going to be an alternative to fixing the housing crisis? Is it something that should be withdrawn at will at the last minute to pay for certain things? Is it something we have decided is essential for the saving of retirement amounts for all workers? I think it's the latter; I believe it's there to provide a dignified retirement to workers as they age. Most Australians agree. They know it's there, they value the system and they have received the benefits. In my electorate of Deakin, we've got an increasing number of people aged over 65 and a decreasing number of people on the aged pension. Superannuation is working. It is delivering a better quality of life for Australians all around the country at all income levels. It is doing exactly what it is designed to do. We can't afford to have any process or change that is going to undermine the accumulation of superannuation savings over time. But, sadly, that remains an item of contention from time to time in this House.

Luckily, this approach, payday super, reflects common sense. From what I can tell, even from the amendments with the usual dose of nuttiness, there is at least consensus on the notion that payday super is a way of ensuring workers are getting the amounts they are owed and deserve, that we can safeguard some of our most vulnerable workers from losing the superannuation they've already earned and that we have better capability of enforcing against noncompliance with superannuation guarantee obligations. We've seen many, many occasions where unpaid super going over years is not being repaid. Workers, because of the way the information is delivered to them, can barely tell whether or not superannuation has been paid at a particular time, because they can't just pick up any old payslip and find out whether it's happened—so they find themselves in a situation where it's not being called out in time. By the time they find out they have not been paid, the company has either gone into administration or ceased to exist, and the capacity for that worker to recover either through the ATO or directly has completely expired.

We need to get to the point where workers can be confident that the money they've earned has been paid. It is not a controversial ask. But, for some reason, as is often the case in this House, we are seeing some rather strange and eclectic contributions. Among them last night was the conspiracy about what super is—

Darren Chester (Gippsland, National Party, Shadow Minister for Veterans’ Affairs) Share this | Link to this | Hansard source

Like Matt Keogh in question time!

Matt Gregg (Deakin, Australian Labor Party) Share this | Link to this | Hansard source

It is the ultimate—

Darren Chester (Gippsland, National Party, Shadow Minister for Veterans’ Affairs) Share this | Link to this | Hansard source

Don't listen to me!

Matt Gregg (Deakin, Australian Labor Party) Share this | Link to this | Hansard source

I should know better than to listen to the member for Gippsland. I have to admit, I'm new to this place and I occasionally make the mistake of listening to members of the coalition. I mistake them for individuals who have credibility and make worthwhile contributions to debate. This particular bill is a perfect example of one where the coalition have absolutely nothing to contribute to the debate. They have an atrocious record on superannuation. They see it as a lucky dip for their own policymaking rather than as an essential part of the retirement framework of this country. The reality is: if we want the next generation to have a proper dignified retirement, we need to deal with housing, protect super and make sure that our institutions remain as strong and trustworthy as ever before.

This is one of the great legacies of the Labor Party. Superannuation for workers finally gave the working people of Australia their fair share of the nation's wealth. Anything designed to undermine that or to use it as a simple slush fund for taking over the consequences of coalition policy over a long time is completely unforgivable. We need to make sure that trust and confidence in the system can be preserved, and we need to get on with dealing with the fact that millions and millions of dollars have been shafted from workers over a long period of time. I will not stand here and allow any suggestion that there is anything insidious about the idea that the workers in Deakin or anywhere in Australia, and their millions of dollars in savings—it is billions if you take it to the total for Australia, $5.7 billion. The idea of trying to ensure that that shafting doesn't happen anymore should be a completely uncontroversial proposition. But, again, we have a little bit of the usual squabble and nuttiness that we have in this House.

In terms of the enforcement of these things, we need to make sure that, when superannuation is not paid, the compound interest that could otherwise have been earned from those contributions is also recovered as part of the regime. In the past, we have seen superannuation recovered at just the nominal amount. It's effectively stolen money because they have lost the real value of the superannuation contributions being made—the earnings that they would have received but for the failure to contribute. So these enforcement provisions and the penalties that sit within this legislation are eminently sensible.

Then we talk about the transition. The transitionary provisions contained within this legislation enable a period of time for business to adjust. The ATO have already given their draft guidance—I think it was on 21 October—which has made it very clear that they will be taking a facilitative approach to the enforcement of these new laws.

We're not out to get businesses. We're there to support them in transitioning their systems to ensure that this can be done right. This is not about punishing small businesses trying to do the right thing. The ATO has made that abundantly clear. We have made that abundantly clear. This is simply about making sure that businesses are supported and enabled to make the payments that are owed to their workers in a reasonably timely way so they can enjoy the benefits of their earnings and have that beautiful magic of compound interest work in their favour as they save for their retirements.

It's about ensuring a dignified and decent retirement for Australians. It's about making sure that the promise of superannuation is fulfilled. And it's about safeguarding the superannuation of some of our most vulnerable workers. We're talking about young workers for whom the loss of superannuation income has dire consequences—tens of thousands of dollars less in their superannuation if these failures continue to persist. We see differences in balances of $31,000, $32,000 and up to $35,000 if super isn't paid at my age, at around 35. It can have significant impacts on a superannuation balance at the end of a person's career.

As I mentioned before, it is not just at the end of a career. It is ensuring that these individuals continue to have the total and permanent disability insurance that they've signed up to, that they continue to have the income protection insurance and, in the worst-case scenario, that they have access to those funds on compassionate grounds, whether it be for emergency health care, for the funeral of loved ones or for the other reasons that are already provided for in legislation. This is the money of workers. They deserve to have it paid into their superannuation accounts in a timely way. It is what the entire system is for.

The proposition that this is part of some crazy cabal, as was suggested by the member for Goldstein last night, is as outrageous as it is foolish. It is absolutely terrifying that a key member of their economic team sees superannuation as some kind of sick conspiracy and has the very idea that superannuation is simply about increasing the money in the Labor Party coffers. By the way, this is a government that just passed laws capping the amount of money that can be put into coffers. This is simply about workers. The very notion of a piece of legislation being purely about benefiting employees seems to be shocking and outrageous to some in the coalition. We need to protect and safeguard this system. We are dealing with an issue that was identified not only by us but by reports commissioned by the coalition themselves. They know this was a problem, and they did nothing about it. We came here, stood up and made a number of changes to protect the sustainability and security of the superannuation system, and all we ask is that you just let us get on with it.

These matters are too important to continue delaying. Ten more years of delay on these things will result in the loss of millions and millions of dollars of superannuation savings. We need to get on with it. The sooner we pass it, the sooner business will have the certainty as to what's coming and the sooner they'll be able to prepare for the changes and be ready by the time this comes in in July next year. I commend the bill, and I express my complete dismay and contempt for the suggested amendments by the shadow Treasurer. I look forward to this essential reform becoming law.

Debate adjourned.