Richard Dowling (Tasmania, Australian Labor Party) | Link to this | Hansard source

My question is to the Minister representing the Assistant Treasurer, Senator Gallagher. Australians spend their working lives building up their super to support themselves in retirement. Today, the Assistant Treasurer has announced another package of reforms to strengthen super. These reforms protect people's retirement savings from misconduct in the financial system. What will these reforms do, and how has the Albanese Labor government acted to protect Australians' retirement savings?

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

I thank Senator Dowling for the question. It's an important question about how Labor continues to strengthen the superannuation and financial systems. As senators will know, the collapse of the Shield and First Guardian master funds exposed risks and vulnerabilities in parts of our financial system. Around 12,000 people were affected, and around $1 billion in retirement savings was impacted.

The Assistant Treasurer spoke at the National Press Club today, where he outlined another range of reforms, including banning unlicensed real-time communications around superannuation, tightening antihawking laws and strengthening penalties, and targeting the data harvesting and broking practices that sit at the front of these business models. It's also about accountability and compensation. If a trustee puts a product in front of members, that trustee should stand behind it. ASIC will be able to direct trustees to begin remediation where there are credible concerns that they have failed their obligations, and APRA will have the powers to ensure trustees offering higher risk products can meet those responsibilities. We are also progressing financial advice reforms, including a new class of adviser for super funds and life insurers and support for scaled advice. We're strengthening consumer protections to ensure that there is greater access to advice, but it will not come at the expense of member safety.

This is from a party that built the superannuation system and a government that will always work to protect it and to safeguard it for future generations. It's a significant national asset, but we are all always needing to look at ways to strengthen and protect it in members' and workers' interests.

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

Senator Dowling, first supplementary?

Richard Dowling (Tasmania, Australian Labor Party) | Link to this | Hansard source

Consumer protection is one part of the Albanese Labor government's agenda to strengthen super. What other changes has the government made to strengthen superannuation, and what will they mean for the balances Australians retire with?

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

I thank Senator Dowling for that question as well. This week, in the chamber, we have talked about the reforms that Labor have done for superannuation including, importantly, ensuring that the superannuation guarantee rose to 12 per cent—after those opposite had delayed it and paused it; paying super on government funded paid parental leave to improve superannuation and how it works for women—again, no government before had been prepared to do that; in terms of the low-income super tax offset, making sure that low-income workers, predominantly women and young people, benefit from the increase to the low-income super tax offset; and legislating payday super, which means that your super sits in your super account, where it's working for you, as it should be. These have been significant and important reforms, and Labor will always protect superannuation. (Time expired)

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

Senator Dowling, second supplementary?

Richard Dowling (Tasmania, Australian Labor Party) | Link to this | Hansard source

The Albanese Labor government has lifted the superannuation guarantee to 12 per cent and has backed wage increases for millions of workers because we know that strong wages have benefits for super balances. Why is it important to support workers wages and to protect superannuation for working Australians?

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

I thank Senator Dowling for that very good question as well. New data released by the ABS today showed that wages grew in the June quarter, and annual nominal wages have now grown above three per cent for all of the four years under this government.

Opposition Senators:

Opposition senators interjecting—

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

I hear those opposite laughing. Under Labor, we have had 16 consecutive quarters, or four years, of wages growing above three per cent. There was not one quarter during 35 long quarters of the previous government where wages grew above three per cent. Thirty-five quarters—and not one quarter above three per cent. What we have on this side is 16 consecutive quarters, or four years, where wages have grown above three per cent.

Opposition senators interjecting—

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

Order! Senator Colbeck, order! Perhaps you didn't hear me, but I called order at least five times. When the minister sat down at the end of her question, you still continued your interjections. That is disorderly.