Helen Polley (Tasmania, Australian Labor Party) Share this | Hansard source

I rise to speak on the Treasury Laws Amendment (Payday Superannuation) Bill 2025. In Australia, we believe that, if you work hard, you should be fairly paid not just your wages but every cent of your superannuation, yet for too long too many Australians have been shortchanged on the retirement savings they have earned. Payday super, a landmark reform of the Albanese government, will change that once and for all. I still remember working in the finance sector. As a woman working for that company, you had to be an employee for 10 years, and then you may have been invited to join their superannuation. We've come a long way thanks to Labor governments.

This legislation is a once-in-a-generation reform to close one of the biggest gaps in our superannuation system. In 2021-22 alone, unpaid superannuation cost Australian workers $5.2 billion. That's $5.2 billion that should have been invested for workers' futures, growing with compounded interest, building security for retirement and easing the burden on future taxpayers.

I know in my home city, where I live, of businesses who have failed to pay superannuation until some years after, and the penalties that those workers experienced—we cannot allow that to happen. What did one business do? They did it a second time. That was no accident, overlooking these things. It was deliberate strategy to not pay that super and for them to have the use of that money.

For decades, unpaid or late super has been quite an injustice in our system. The introduction of payday super is the moment we draw a line. From 1 July 2026, employers will be required to pay superannuation at the same time as wages, not quarterly. It's a simple change with profound consequences—one that strengthens the entire superannuation system and ensures that Australians receive what they are legally owed on time, every time.

Right now super contributions can be paid by employers up to three months after an employee receives their wages. That delay may sound small to some, but it creates a huge problem. It means workers often have no way of knowing if their super is actually being paid, not until months later, by which time it's often too late to recover missing payments. Under payday super, contributions must reach an employee's super fund within seven business days of the payday. That brings super into line with how wages are paid today—promptly, transparently and electronically. This is a simple concept, but it will transform superannuation. It will transform workers entitlements when they get to retirement age, which is why we proudly support and will always defend superannuation.

It will also protect workers entitlements by closing the gap that allows unpaid super to go unnoticed; strengthen retirement outcomes by ensuring that super is paid regularly, boosting compounding returns over time; level the playing field by ensuring that honest businesses are not undercut by competitors who dodge their super obligations; and build transparency and trust, giving workers the ability to check their super payments in real time through their pay slips and online accounts. Put simply, this is about fairness. It's about accountability. When people work, they deserve to know that every dollar they've earned, including their super, is being paid promptly.

Unpaid super is not a minor issue; it's a national problem.

(Quorum formed) According to the Australian Taxation Office, around one in four workers are underpaid or not paid super each year. That means many millions of Australians, often in low-paid, casual or insecure work, are being denied the retirement savings that they will rely on. This particularly affects young workers, women and those in the industries of hospitality, retail and construction—people who can least afford to lose out.

For a worker, every dollar of unpaid super today can mean thousands of dollars less in retirement. For example, a 25-year-old worker who misses out on $1,000 of super contributions today could have around $4,000 less by retirement age, once compound interest is considered. If you multiply that across the years and across millions of workers, the scale of the problem becomes staggering. Payday super will ensure that superannuation is paid on time every time, closing a loophole that has cost workers billions of dollars. It's one of the most practical and impactful reforms to workplace laws in decades, and who has done it? The Albanese Labor government. We believe in superannuation.

The bill does more than just change the timing of payments. It modernises the entire superannuation guarantee framework to make it more effective and fairer. Employers will still be required to pay the super guarantee rate, which is currently 11 per cent, but the timing and enforcement mechanisms will be updated to ensure compliance. Under the reforms, superannuation contributions must be received by the employee's fund within seven business days of payday. Employers who fail to meet this timeline will be liable for the superannuation guarantee charge. The superannuation guarantee charge has been updated to better target employers' behaviour, which means penalties will focus on those who fail to pay on time, while ensuring that employees are compensated for any delay, through the accrual of notional earnings on unpaid super. In other words, the system will now reward employers who do the right thing and will ensure consequences for those who don't. It's a modern, fair and transparent model of compliance.

The government recognises that reforming a system as large and interconnected as superannuation cannot happen overnight. That's why implementation will begin from 1 July 2026, giving employers, payroll providers, super funds and the ATO ample time to update their systems and processes. This legislation is a high priority, and the government is seeking the bill's urgent passage through parliament to allow preparation to begin immediately.

Employers will benefit from clearer obligations and simpler processes once the new system is in place. Payroll providers and super funds are already working closely with Treasury and the Australian Taxation Office to design systems that will automate compliance and integrate super payments seamlessly into pay cycles. Ultimately, this reform is about making compliance easier, not harder. By aligning super payments with payroll, we make it simpler for employers to meet their obligations while providing workers with greater transparency and confidence.

The Australian superannuation system is the envy of the world. We should be proud of it. That's why Labor will always protect it, unlike those opposite. It has turned retirement savings into one of our nation's great economic strengths. Over $3.5 trillion is invested on behalf working Australians. But a system that is big and important cannot afford to have cracks in the foundations. Unpaid super is one such crack, and, if left unaddressed, would undermine the integrity of the whole structure. Payday super closes that gap by ensuring that super is paid promptly and regularly. The reform will help super funds manage inflows more efficiently, improve data accuracy and give members clearer visibility of their growing savings. It will also support faster detection of non-compliance, allowing the ATO and super funds to step in earlier if contributions are missing, which is so critically important.

This reform strengthens not only individual retirement outcomes but the broader economic resilience of our country. Every dollar that flows into super on time is a dollar that can be invested productively in housing, in infrastructure, in innovation and in Australian businesses. Critics of reform often claim that stronger regulation comes at a cost to business. But payday super demonstrates that fairness and economic responsibility can go hand in hand. By integrating super payments with payroll, the administrative burden on employers is actually reduced. Most modern payroll systems are already capable of handling real-time or near real-time super payments. This reform simply brings the law into line with technological reality. By preventing unpaid super from accumulating, payday super reduces the need for costly enforcement and recovery actions later. It's good policy, good economics and good governance. For workers, it means confidence. For businesses, it means clarity. For the economy, it means fairness backed by efficiency.

The payday super reform embodies what Labor governments do best—practical reforms, grounded in fairness that make a real difference to people's lives. It's about ensuring that the social contract between worker and employer is honoured and that, when you go to work, you get what you earn. It's about lifting standards across the board, not lowering them, and it's about protecting the dignity of retirement for every Australian. You work hard all your life. You deserve respect. You deserve dignity, and you deserve to be able to live a comfortable life.

From the introduction of universal superannuation under the great Paul Keating government to this latest reform under Prime Minister Albanese's government, Labor has always been the party of fair retirement savings. Payday super continues that proud tradition, ensuring that the promise of superannuation—a comfortable and secure retirement for all—is finally delivered in full. When this reform takes effect in July 2026, it will transform the experience of millions of workers. Superannuation will no longer be an afterthought. It will be an automatic, reliable part of every pay cycle. Workers will be able to see their super building alongside their wages and know that their hard work today is securing their future for tomorrow. This is how we built a stronger, fairer, more resilient Australia—by tackling longstanding problems with smart, practical solutions that put people first.

Payday super is more than just an administrative reform. It's a statement of values that says that fairness matters, that every dollar earned counts and that the dignity of retirement is not a privilege but a right. The Albanese government is acting with urgency and determination to pass this legislation because when Australians work hard, they deserve to be paid properly—not just now but for the rest of their lives.

I've seen the transformation that compulsory superannuation has made. Why should a woman have to work for a company for 10 years before she may be—there's no guarantee—invited to join the superannuation fund? That's the good thing about Labor. We deliver real reform that benefits not only individuals but our economy. We are leading the world when it comes to superannuation. I'm proud to be part of the Albanese government. I've always been very proud of Paul Keating and what he's done. Still, today, he stands up for what he believes is essential, and that is having superannuation. This takes that next step.

I'm proud to support this legislation and I hope everyone else in this chamber will do the same thing, because every Australian—whether they are a young worker, whether they are working in retail, whether they are working in a warehouse, whether they are collecting garbage or whether they are sitting in this chamber—needs to be able to rely on superannuation being paid so they can get the benefits of that in the longer term.