ADJOURNMENT

Senator GHOSH (Western Australia) (15:50): Fighting for working Australians is the essence of the great Australian Labor Party: higher wages, better conditions, safer workplaces. But the Labor Party is equally committed to ensuring that Australians continue to prosper after they stop working, that Australians can live comfortable lives in retirement—lives of dignity and financial security.

At the core of that commitment is the superannuation guarantee. It was the Labor Party that conceived the scheme, the Labor Party that put superannuation in place and the Labor Party that has continued to defend it from the coalition and others who have sought to dismantle it or undermine its core purposes or integrity over the last three decades. Our super system has built the fourth-largest pension fund pool in the world and has dramatically improved standards of living for retirees.

Since taking government in 2022, the Albanese government has passed significant reforms to the super system—reforms that include paying contributions on paid parental leave, something that will help close the retirement savings gap that's experienced by women. Payday super reforms, which took effect in July this year, ensure that super contributions are paid at the same time as wages so that your super begins compounding earlier.

And we fought to increase the minimum required contribution from employers so it reaches 12 per cent—which will one day reach 15 per cent. I am proud to be a member of a party and a government responsible for these changes, but there is a glaring injustice still embedded in our super system that I believe needs to be addressed, and that is that, under current legislation, it is not a requirement to pay superannuation to workers under the age of 18 unless they work more than 30 hours a week.

This means we have a system where someone can be working for three years from the age of 15, through to the age of 18, without their employer being required to set aside money for their retirement. The impact of this carve-out is significant. In Western Australia alone, analysis has found that the 54,000 workers who are under the age of 18 each missed out on an average super contribution of $655 a year.

If we consider that loss across the whole country, it is more than half a million workers who together are missing out on $405 million worth of retirement savings. And, if there's one thing we know about super, it is the importance of investing early. Having superannuation balances increase early allows this money to compound over time.

It gives young people the best chance, from the earliest stage in their career, to build a retirement savings amount that will allow them to live well once they have finished working. Analysis from the Super Members Council found that missing out on super contributions before the age of 18 could cost someone $11,000 or more by the time they retire. Ensuring that workers aged 18 and under are contributing to their retirement savings not only pays dividends for the individual when it comes time to retire but also reduces the number of workers reliant on the taxpayer funded age pension.

Now, you might ask yourself how this arrangement came to be in the first place, because it's so illogical, and you'd be right to ask that. But research found that two-thirds of Australians don't even know this exemption exists. The reason for the decision dates all the way back to the 1990s, when the superannuation guarantee was being implemented.

During this time, the cost of processing a cheque for super contributions ate into the amount of money paid into a retirement account, and it was therefore decided that the amounts that would be paid to young workers should not be paid as superannuation because of that impost. But, three decades later, super contributions are significantly higher, processing fees are significantly lower and we use very few cheques in our society, meaning that that argument no longer stands and what we are left with is an anachronism that needs to be removed to allow younger people to earn superannuation earlier.

Most Australians agree. Research has found that 77 per cent of Australians say that the exemption, when it's explained to them, is unfair and around 82 per cent want the law changed. Last month at the Australian Labor Party's national conference, the party platform was amended to provide for this.

I believe it is the right decision to get rid of this exemption. It was an anachronism that has cost Australian workers hard earned money that should have been set aside for them in retirement. I commend the SDA for its tireless work in this space.

Their Super on Every Dollar campaign has moved the needle in public opinion and made this issue come to light and have a greater profile. I am proud to be part of a party that supports this issue, and I'm proud to support the SDA as they fight for young people's superannuation.