Ellie Whiteaker (WA, Australian Labor Party) Share this | Hansard source

Labor believes that Australians should earn more and keep more of what they earn. These bills—the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026 and the Superannuation (Building a Stronger and Fairer Super System) Imposition Bill 2026—strengthen the fairness and the long-term sustainability of Australia's superannuation system, and I would say that is core Labor business. They ensure that generous tax concessions built into superannuation are properly targeted at their original purpose, which is to help Australians save for retirement.

Superannuation was never intended to operate as a tax shelter for large fortunes; it was designed to provide working Australians, ordinary Australians, with security and dignity in retirement, and those are principles that Labor is committed to. These reforms recognise that principle. They maintain concessional treatment for the vast majority of Australians while modestly reducing tax breaks for those with the very largest of super balances. Importantly, the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026 also strengthens support for low-income workers by increasing the low-income superannuation tax offset.

Taken together, these changes make the super system fairer. They make it stronger. They will protect retirement savings for ordinary workers, build super balances for those who need them the most in retirement and ensure the system is sustainable for decades to come. There's no doubt that Australia's superannuation system is one of the most successful public policy reforms in our nation's history. It has transformed retirement in our country, giving working people the chance to retire with independence and security, and it must evolve to keep pace with changing economic realities. Superannuation receives tax concessions because we want Australians to save for their retirement, but these concessions are funded by the public and should therefore be targeted at their intended purpose.

Over time, what we've seen is that a small number of accounts have accumulated balances worth many millions of dollars. These are not your average Australians; these are wealthy Australians with high superannuation balances. The tax concessions go well beyond what is required to support a dignified retirement, and they can instead become a vehicle for large tax advantages that were not the original intent of the system. When that happens, it undermines the fairness of the system and places unnecessary pressure on the federal budget. This reform ensures that superannuation continues to serve the people it was designed for: ordinary, hardworking Australians saving for retirement.

It's about restoring balance to that system. It recognises that superannuation should remain a concessional environment for saving but that those concessions should not be unlimited. The truth is that the overwhelming majority of Australians will have absolutely no change under these concessional changes. Workers contributing to their super throughout their careers will continue to benefit from the same concessional tax treatment that has supported retirement savings since super was introduced. What this legislation does is modestly scale back tax advantages for the people with the very largest balances. It will ensure that superannuation continues to reward saving while avoiding excessive contributions that benefit a very small number of people at the top. That work is extremely important.

But what I am most proud of is the support that this provides to working Australians who earn the least and often do some of the toughest work in our nation. We know that low-income Australians often face the greatest barriers to building adequate retirement savings, and those workers still pay tax on their super contributions even though their incomes may fall below the income tax threshold. That has long been recognised as an inequity in the system. The low-income superannuation tax offset was designed to correct that problem, ensuring these workers are not disadvantaged by the way super contributions are taxed, and these bills strengthen that protection.

The maximum LISTO payment will increase to $810, and the eligibility threshold will rise to $45,000. This will mean tens of thousands of dollars extra in the bank balances of many Australians when they retire. More than a million Australians will be better off in retirement because of these bills. That's more than a million ordinary, hardworking Australians who will be better off thanks to Labor's enduring commitment to superannuation and these bills.

We know that, mostly, it is women and part-time workers who have historically been left behind in retirement savings. In retirement, women retire with significantly less than men—around 25 per cent. That's tens of thousands of dollars. The day women retire, they have tens of thousands of dollars less in their superannuation accounts than men. There are lots of reasons for that—like the gender pay gap, to which our government has been absolutely committed to closing. We can see that happening, with the release of WGEA's gender pay gap reporting last week.

Career interruptions, unpaid caring work and part-time employment all contribute to the super gap. Over time these factors compound and lead to substantially lower retirement balances for women across this country. Labor says that is simply unacceptable. That is why we are committed to making sure that Australian women retire with more money in their super balances. Increasing the low-income superannuation tax offset is an important part of doing that work. It means women and workers in low-paid sectors who are more likely to retire with less will receive the full benefit of the super contributions made on their behalf. It is an important step in ensuring that every Australian can retire with dignity.

These reforms sit alongside a whole series of changes that Labor is undertaking to strengthen Australia's superannuation system. The superannuation guarantee has now reached 12 per cent, ensuring Australians can build larger balances over the course of their working lives. Payday superannuation reforms ensure workers are paid their super contributions when they're paid their wages, closing the doors on unpaid super and making it much easier for workers to track when they're paid their super or not. Super will be paid on government funded paid parental leave, which will go a long way to closing the gender retirement gap. Performance testing has been expanded across hundreds of superannuation products, ensuring Australians are protected from underperforming funds. Together, these reforms represent the most significant strengthening of the superannuation system since it began.

For most Australians, superannuation is the most important financial asset they will hold. It is the foundation of their retirement security. The power of super lies in its long-term investment and compounding returns, so every day matters. Contributions made today grow over decades, turning small regular payments into meaningful retirement savings for Australian workers. That is why trust in our superannuation system is so important. Australians deserve to know that the system is fair and working in their interests, and reforms that protect that fairness help maintain that trust.

We must never forget that it was unions and union members right across this country who fought for superannuation in the seventies and eighties. Before unions won their historic campaign for compulsory super, super was deeply unfair. Less than one in four women and blue-collar workers had a superannuation account, and now every Australian worker has the right to super. This is generational, life-changing stuff. Unions continue to campaign to protect super and have campaigned to increase the super guarantee over many years. To the hardworking members and delegates of unions right across this country who have campaigned on keeping super fair: thank you for that really important work.

Labor will always protect Australian workers and their retirement savings through our super system, and that is why we are committed to making our superannuation system stronger and fairer. We made superannuation compulsory because we wanted to make sure that every Australian who works hard throughout their lives has the security of knowing that they can retire with dignity. The superannuation system works best when it is fair, balanced and sustainable, and this legislation protects that integrity. It is in the spirit of what our superannuation system was created for back in the nineties. It maintains concessional treatment for ordinary Australian workers to make sure that they are able to save and see the benefit of the many years of compounding interest on their retirement balances while ensuring that the very, very wealthiest do not receive unlimited tax advantages through our super system.

These are modest reforms. They are responsible and they are necessary, but what is most powerful about this bill is the impact it will have on women and low-paid workers in this country—workers who do the toughest of work, whether that is in our aged-care homes, taking care of our grandparents, parents and friends; whether it's in our childcare centres, taking care of our children, grandchildren, nieces and nephews; whether it's retail workers, who are often at the forefront of some of the toughest work; or whether it's blue-collar workers on the shop floor. It makes sure that, no matter what it is that you're doing, you are able to benefit from a stronger and fairer retirement system.

Labor will always protect your super. Labor made super compulsory, and we will always ensure that the Australian superannuation system continues to deliver dignity to Australians in retirement and security for every working Australian.