Payday Superannuation Bill

Ensuring Super is Sustainable and Fair

VIDEO

 I rise in support of the Treasury Laws Amendment (Payday Superannuation) Bill 2025 and related bill. Early money is like yeast; it makes the dough rise. The principle of EMILY'S list is that early investment in female candidates attracts more funding for female candidates and leads to more members of parliament being women, something Labor women live and completely understand. The same principle applies to superannuation. The early money gathers itself and creates more dough through the compounding of that money over time.

This legislation is part of a strong Labor tradition. We created superannuation—we created this system—and we are working to ensure it is sustainable and fair. The bill in front of the House confronts an issue that has affected millions of Australians: unpaid superannuation. Unpaid superannuation cost Australians $5.2 billion in 2021-22. The reforms presented require employers to pay super at the same time as wages, ensuring that employees are more easily able to keep track and employers are reminded more often of their responsibilities. The Albanese Labor government is committed to strengthening the super system and ensuring that Australian workers receive what they are legally owed.

Let's have a look. It means a lot in my electorate. I want you to remember, while we are doing this, that the electorate of Lalor is one of the youngest electorates in the country, so we have a lot of people in their first years of employment. The median super of a worker in Lalor is $14,300 compared to $62,300 in Australia. The unpaid super rate is higher than the national average; 35 per cent of workers in Lalor saw their super not fully paid in the year 2020-21. Over 29,000 workers missed out on an average of $1,300, totalling $38 million across the electorate. That means that around one in three people in my electorate have faced unpaid super. That's just not fair. My electorate experienced levels of unpaid super eight per cent higher on average than all of Australia. Unpaid super disproportionally affects the population of younger employees in my electorate.

These reforms will ensure that the young individuals in my electorate receive their fair share and that the money is invested in their futures. The superannuation guarantee charge is also being updated, to target employer behaviour and ensure employees are compensated for delays. Employers will face a charge if an employee's super is not paid within the seven-day timeframe or in full. These charges incentivise employers to pay employees' super on time. Our government is ensuring that employees face fair working conditions, and superannuation is a part of that.

The government has committed $404.1 million for the operation and implementation of these introduced reforms. They are incredibly important reforms for individuals in my electorate, not just now but into the future, to ensure that they have a dignified retirement in the longer term.

The Albanese government is delivering more for low-income workers in this cost-of-living crisis. As announced by the Treasurer, reforms to the low-income superannuation tax offset will also come to this place and ensure that the financial burden of those who are vulnerable is eased. The income threshold will increase from $37,000 to $45,000, and the maximum rebate will increase from $500 to $810. These measures will boost the super of 9,100 low-income earners in my electorate. That is around $4 million across my electorate. With these reforms, the government will deliver a more secure retirement for an additional 1.3 million Australians, 60 per cent of them women. The average increase in LISTO payments will be $410, leading to a potential increase of $15,000 in super funds. The additional super will allow Australians to invest in their future. Workers who benefit from this reform will include 100,000 sales assistants, 50,000 administrative workers and 50,000 carers for the aged and the disabled. These workers are absolutely critical to the very fabric that makes up Australia. With these changes, the total number of Australians eligible for LISTO will increase to 3.1 million. The average annual LISTO payment will increase by a third, from $280 to $375. In my community, 56 per cent of those who will benefit will be women. That means 5,096 women in my community will benefit due to the policy that we are introducing. This is really critical legislation. It's a Labor tradition to strengthen superannuation, just as it's been a Labor tradition to strengthen Medicare.

Further reforms announced by the Treasurer include introducing a second threshold on earnings of large balances over $10 million, in addition to the threshold of $3 million. These changes will also make superannuation fairer. These policies will continue to affect less than 0.5 per cent of all Australians. There are 14 times as many people who will benefit from the boost to LISTO as there are people in the other categories.

Another measure that the Albanese government has introduced is, of course, the payment of super on Commonwealth paid parental leave. Data show that, within my community, men on average have an extra $1,900 in funds in their super accounts compared to women. Addressing the fund discrepancy and building on policies to bridge that gap protects Australian women. The Albanese Labor government is a government that stands behind women and behind young people. We are there for all of Australia. I'm proud to be part of a government that is working to make sure that superannuation is sustainable and fair. It means that young workers in my electorate can count on this government to make sure they're getting every cent that they work for.