Treasury Laws Amendment (Payday Superannuation) Bill 2025, Superannuation Guarantee Charge Amendment Bill 2025; Second Reading

Gregg argued that unpaid super is an unacceptable situation, citing $31.4 million owed in his electorate and $5.7 billion nationally. Gregg stated that the bill provides a commonsense approach to ensure workers receive their earned remuneration and safeguards vulnerable workers from losing savings and insurance coverage. Gregg emphasised that superannuation is essential for a dignified retirement and that the legislation helps recover the real value of contributions through compound interest. Gregg welcomed the facilitative enforcement approach by the ATO to support businesses during the transition.

Chesters stated that the bill is common sense and will have minimal impact on businesses that already pay super on time. Chesters argued that the reform helps break the phoenixing model used by some employers to avoid paying super, particularly in service industries like cleaning and security. Chesters highlighted that the change aligns super payments with wages, making it easier for employees to track their entitlements and for the ATO to detect missing payments early. Chesters noted that the revised super guarantee penalty incorporates notional earnings and administrative uplifts to ensure fair competition and timely payment.

Kearney described superannuation as a proud achievement of the Labor Party and union movement, established to ensure dignity and financial security in retirement. Kearney argued that the bill addresses the issue of unpaid super, which hits younger employees and those with insecure jobs hardest, by requiring payments on payday. Kearney explained that the updated super guarantee charge compensates employees for lost investment returns and includes penalties for employers who fail to pay into chosen funds. Kearney stated that the reform strengthens the superannuation system and protects workers from losing out on compound interest.

Cook argued that the bill is a fundamental reform to ensure workers receive their earned superannuation, addressing a system where $5.2 billion went unpaid in 2021-22. Cook stated that the change levels the playing field for responsible businesses and prevents unscrupulous employers from using super entitlements as short-term loans. Cook highlighted that the ATO will use data matching to detect missed payments early and that the government is investing $404 million to support implementation. Cook emphasised the urgency of passing the legislation to allow time for system updates before the 1 July 2026 start date.