Jana Stewart (Victoria, Australian Labor Party) | Link to this | Hansard source

My question is to the Minister for Finance, Senator Gallagher. Superannuation was designed to give every working Australian savings of their own to retire with. Four decades later, it has changed what retirement looks like in this country. What is superannuation for, what has it delivered for working Australians, and how is the Albanese Labor government strengthening the system for workers today and those still to come?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I thank Senator Stewart for the question. It's an important one, and I know that those on this side of the chamber will always argue to strengthen and protect Australia's superannuation system. Back in the early 1990s, when a Labor government designed compulsory superannuation, it was all about reducing the reliance on the aged pension and making sure that the aged pension is one of the most sustainable pension systems in the world. I think, in any international comparison, Australia's retirement system shows Australia to be one of the best in the world despite the claims from those opposite.

Labor has built superannuation, and we have strengthened it since being in government. We've increased the superannuation guarantee to 12 per cent; we've ensured that super is paid at the same time as wages, which closes loopholes that have denied workers their entitlements; and we're paying super on government funded paid parental leave, which improves equity—especially for women. And I know the Assistant Treasurer continues to work on other areas, like important consumer protections, which there'll be announcements about in the future.

In relation to the low-income super tax offset, we have put that—better targeted super concessions for large balances over $10 million as well through the tax reform changes that we have put in place. But, when it comes to LISTO, which we joined with that higher balance change, about 1.3 million Australians will benefit from the boost to the low-income super tax offset. This includes about 750,000 women and about 550,000 young people who will receive a boost of up to $810 per year to their superannuation account once they receive that. This means there's a benefit at retirement of up to $15,000 depending on their earnings over their career.

Sue Lines (President) | Link to this | Hansard source

Senator Stewart, first supplementary?

Jana Stewart (Victoria, Australian Labor Party) | Link to this | Hansard source

From 1 July, employers must pay superannuation at the same time as wages. What difference will payday super make to Australians' retirement savings and to workers who have been missing out?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I welcome that question too because the reforms to payday super are really important. They began on 1 July this year. When we look back at some of the advice from the ATO, it found that, in a typical unpaid super case, a worker could miss out on two years worth of superannuation contributions, and payday super—or paying super on payday—acts to fix this. For the average 35-year-old worker, if they had not had their super paid, that would reduce their retirement savings by about $32,000 in today's money. But payday super will address that and ensure that they are receiving their super when they receive their pay and that money is going into their superannuation account to work for them.

Sue Lines (President) | Link to this | Hansard source

Senator Stewart, second supplementary?

Jana Stewart (Victoria, Australian Labor Party) | Link to this | Hansard source

Compulsory superannuation is changing the lives of Australians and helping ensure a dignified retirement. How is the Albanese Labor government working to strengthen and defend Australia's world-leading superannuation system, and what threatens this work?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I thank Senator Stewart for that question. I've gone through the ways that the Albanese Labor government is strengthening our world-leading superannuation system. Those on this side of the chamber will always stand up to protect and strengthen the compulsory superannuation system in this country, despite the claims from those opposite with all their ideological attack on superannuation. We've seen that since super was originally thought of in the early nineties.

We saw it then, Senator Bragg, and every step of the way—freezing the guarantee, the early release super account, the super for housing idea and, now, the most recent attacks where you team up with One Nation and try to outdo each other and bring down the superannuation system. I find it ironic, actually, that those that argue the loudest against compulsory super always seem to have pretty good superannuation arrangements themselves. It's alright for you, but it's just not good enough for working Australians. (Time expired)