MATTERS OF URGENCY
Senator CAROL BROWN (Tasmania) (16:55): Labor has always believed that people should be paid properly for the work they do and that working Australians should be able to look forward to a secure retirement. This is particularly important for younger Australians. Many are working casual or part-time jobs while studying, helping with household costs and trying to get a start.
The super they earn early in their working lives matters, because it has longer to grow and can help make a real difference later in life. At the moment, a worker under 18 generally has to work more than 30 hours a week for an employer before they're entitled to compulsory super. We know that is not how many young people work.
They work after school, on weekends and during school holidays. They work in cafes, supermarkets, shops and businesses across the country. They are doing real work and earning real wages.
The principle is straightforward. If you're earning a wage, you should also be building super for your future. We want to strengthen superannuation and make sure working people receive what they are entitled to.
That is also why this government has acted on wage theft and unpaid super. From 1 January 2025, deliberate wage theft became a criminal offence under federal law, and those protections include superannuation entitlements. I want to be speak now particularly about Senator Payman's motion.
The suggestion that deliberate underpayment of superannuation sits outside the protections this government has put in place is not correct. We know too many workers still miss out on super that they are legally entitled to, particularly younger workers, lower paid workers and casual workers. That is why our focus is on making sure workers receive the money they have earned.
Since 1 July, payday super has begun rolling out, moving us to a system where super is paid at the same time as wages. Super is not an optional extra. It is deferred wages, and it belongs to the worker.
Payday super means workers can sooner see whether their superannuation has been paid, and unpaid super is less likely to build up over months. We are also extending support for low-income workers through changes to the low income super tax offset, which will benefit more than a million Australians. While we're talking about strengthening super, there is another debate happening that should concern Australians.
One Nation wants renters and mortgage holders to be able to divert a quarter of their compulsory superannuation contributions in 2 to two take home pay for up to three years. The superannuation guarantee is now 12 per cent. Under One Nation's proposal, workers would take three percentage points out of their super and spend it today.
I understand why that might sound attractive to someone struggling with the cost of living, but there is no free money here. That money comes directly from workers' retirement savings. It means less money going into their super account and less time for that money to grow.
Modelling cited by the Assistant Treasurer suggests that someone on the median wage who did this for three years would retire with around $25,000 less in super. For a couple, that would be around $50,000 less. Labor does not believe the answer to the cost-of-living pressures today is to make working people poorer when they retire.
Superannuation is one of Australia's great economic and social achievements. It's about making sure people who work hard throughout their lives can retire with dignity and security. We have taken the superannuation guarantee to 12 per cent.
We are paying super on Commonwealth Paid Parental Leave. We are delivering payday super. We are improving support for lower paid workers, and we will keep looking at practical ways to strengthen the system so it works better for more Australians.
Superannuation is a long-term system. Changes made today can have consequences over decades, so reform has to be careful and focused on better outcomes. That is the difference.
(Time expired)