Treasury Laws Amendment (Payday Superannuation) Bill 2025, Superannuation Guarantee Charge Amendment Bill 2025; In Committee

Continued the debate

Senator McKim moved amendment (1) to the Treasury Laws Amendment (Payday Superannuation) Bill 2025. The amendment aimed to prevent regulations from excluding workers under 18 who work fewer than 30 hours per week from receiving superannuation. McKim argued that the government had sufficient time to implement necessary systems before the bill's commencement on 1 July. McKim also questioned why the government was not listening to the Shop, Distributive and Allied Employees Association, which supports the change, despite historical criticisms of union influence on Labor policy.

Government response

Minister Gallagher opposed the amendment, asserting that the government does not alter superannuation policy based on Senate amendments without thorough consultation and impact assessment. Gallagher explained that the bill consolidates exclusions into regulations to improve readability, with no change to current practice regarding under-18 workers. Gallagher highlighted other government initiatives strengthening superannuation, such as paying super on paid parental leave, increasing the superannuation guarantee to 12 per cent, and the low-income superannuation tax offset. Gallagher noted that young workers often change jobs frequently, which could lead to multiple low-balance accounts with high fees, a complexity requiring careful policy development.