Helen Polley (Tasmania, Australian Labor Party) Share this | Hansard source

I rise to speak on the Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 because safe and secure superannuation is important to the wellbeing of all Australians. It's so good to follow Senator Bragg. He came in here, rambled on and talked a lot of nonsense and mistruth about Labor's support for superannuation, so let's put some things on the public record. We all need superannuation. It's fundamental to our financial and social security and to a happy, healthy and, very importantly, dignified retirement. Labor are not supportive of this bill in its current form, so we are seeking to amend it.

There are still many Australians in our country who do not retire with enough super. There are Australians who have super stolen from them and Australians who are doing everything they can to find their lost super. Unpaid superannuation is a massive problem across Australia. Industry Super Australia has estimated that 2.4 million Australian workers are losing $5.6 billion in payments each year—that is, $5.6 billion annually. That is equal to workers losing $2,000 per year which should be going into their retirement savings. Superannuation is part of a worker's pay and conditions. Every worker deserves to receive the superannuation they are entitled to. It's up to the government and to law enforcement to ensure companies and individuals are not stealing people's superannuation.

Super is an investment in yourself and your retirement, and Australia is very fortunate to have a superannuation system that benefits not only individuals but the wealth and prosperity of our entire nation. As of October 2019, Australians have A$2.93 trillion in superannuation assets, making Australia the fourth-largest holder of pension fund assets in the world. That is a feat in itself.

We thank the union movement and the likes of former Prime Ministers Bob Hawke and Paul Keating for their vision and creation of superannuation, something we should all hold dear. In 1983, an agreement between the government and the trade union movement made super available for all Australians. But superannuation across the economy didn't really occur until the early 1990s, under Paul Keating. The employer contribution rate for superannuation has been 9.5 per cent since 1 July 2014. As of 2015, it's planned to increase gradually from 2021 to 12 per cent in 2025. I want to briefly explain why the trade union movement and Labor, all those years ago, wanted to introduce compulsory superannuation. It was a twofold plan: firstly, to enable working Australians to have dignity when they retire; and secondly, to raise funds for our country—a pool of funds that would make our community and our economy stronger. The economic security of Australians could be guaranteed with universal superannuation.

Super is perhaps more important than it has ever been because wages remain at historic lows. We know this government has not had a plan for increasing wages and ensuring that Australian workers' pay and conditions keep up with the pace of inflation and the need to have a strong economic future. There have been no additional compulsory superannuation contributions over the last five years, and there has been very little change when it comes to real wages. In an era where wage theft continues—we hear and read about it only too often in the media; and we note the recent case of Woolworths underpaying 5,000 of its workers to the tune of $300 million—super is more important than ever before. There are 12.9 million Australians in the workforce today who rely on superannuation for their retirement, and this is their money. It is money invested in every single one of those working today. It is not some government fund. It is the workers' money. It's their entitlement. It is there to ensure they have a dignified retirement.

The superannuation guarantee has virtually wiped out Australia's net income deficit for the first time since European settlement. For the first time in our history, Australia has now become a capital exporting country. The domestic manifestation of this has been much lower cost of capital to Australian businesses. So business is also gaining from this, which is not the picture that was painted by the previous senator—who, quite frankly, didn't know what he was talking about. This year an Australian 10-year Treasury bond pays less than one per cent, yet the larger industry funds this year recorded returns on average of nine per cent. You get nine per cent from industry funds and one per cent from the Treasury bonds. I know which one the Australian workers deserve, and I know which one they would prefer.

The larger industry funds, as I said, recorded nine per cent—a wonderful achievement. In the words of the former Prime Minister, Paul Keating:

Where else, in this low interest rate world, would an ordinary working person be able to earn 9% on their savings?

That's what's important. But obviously those opposite don't really care about Australian workers. They only care about their friends at the big end of town. Only a relentless Liberal government would act to damage Australia's superannuation system.

With the deficit sitting at almost $40 billion, responsible governments must ensure every dollar of Commonwealth money is targeted and well spent. The government's proposed new superannuation loopholes will cost the budget $12.3 billion over the decade. This is not affordable in the current climate. In fact, I'd suggest that it's not acceptable or affordable at any time.

Currently, unpaid or underpaid employee superannuation contributions are a debt owed to the Australian Taxation Office rather than the worker. Unless there is a clause in their award or agreement, workers can't chase this money, as the money is not technically owed to them. Placing superannuation within the National Employment Standards in the Fair Work Act would mean all employees would be empowered to recoup unpaid superannuation from employers through the Fair Work Commission or the Federal Court. Individuals would be empowered to chase their own unpaid superannuation instead of waiting for the ATO to do it for them.

The Morrison government's proposed changes mean an employer could have kept superannuation entitlements from an employee for more than 25 years and will not face any penalty if they pay it back during the amnesty period. Rather than increase penalties for employers who do not pay their workers' superannuation, the government wants to give them a free pass. That's what this government is all about: a free pass for those who steal from Australian workers. You cannot trust the Morrison government. They want to allow employers to continue to steal Australian workers' superannuation. Rather than increase penalties for employers who do not pay their workers' superannuation, as I said, what do they want to do? They want to give them a free pass. Businesses who do the wrong thing and steal from workers should pay the price for their misconduct, not get a tax break. For everyone else, if you do the wrong thing and breach the law, you pay the penalty. But those people on that side want to protect their mates.

There are no recent parliamentary reports into unpaid super guarantee that have actually recommended such a measure. Labor senators who inquired into the measures in the 45th Parliament found that, while employees have the book thrown at them for stealing from employers, the government, by introducing an SG amnesty, is establishing a different rule for employers who steal deferred wages from their employees. Treasury confirmed that $230 million is expected to come forward under this amnesty, a very small amount when this one-off amount for a 26-year period is compared to ISA's estimated annual SG gap of $5.9 billion and the ATO's estimated SG gap of $2.8 billion.

Labor built Australia's superannuation scheme. That's what we did under Hawke and Keating. We will always work to ensure that it is fair and sustainable and sets Australians up for a comfortable and dignified retirement. That's what everyone deserves. Workers and those who are out there day in, day out, doing the jobs that we have to have to keep this economy going, deserve their superannuation. They deserve dignity in their retirement, just like everyone sitting around this chamber.

I want to make some other comments about women and superannuation. As stated, we know that employers don't always honour their legal requirements to pay the Australian workforce their super. On average, Australian women who retire today will do so with 47 per cent less superannuation than men. Almost 40 per cent of single women live in poverty and endure poor economic security in their retirement, and we know the fastest-growing cohort of homeless people in this country is older women. That's why I'm passionate about women being able to get what they're entitled to as far as their superannuation is concerned.

There are almost 220,000 women missing out on $125 million of superannuation contributions, as they unfortunately fail to meet the current requirements to earn $450 per month from a single employer before tax. Many women work several part-time jobs, often in addition to spending an average of five hours per day catering for family needs. Female graduates earn $5,000 less than their male counterparts, making it difficult for them to meet mandatory superannuation earning requirements. Also, on average women are out of the workforce for five years, caring for children and family members, which can cause their superannuation savings to stagnate and begin to fall behind men. The current 0.5 per cent superannuation guarantee disadvantages most women in accruing enough superannuation savings for a dignified retirement, meaning that 8.5 per cent of women between the ages of 65 and 74 will still have a mortgage to pay when they retire.

As a country and as legislators we must do more. Superannuation can always be improved. This bill, as it stands, will only weaken it. The system and Australians will be poorer if this legislation gets through the parliament without amendment. We have a responsibility. On this side we understand what the struggle before the introduction of superannuation was all about. I can remember working for a company in the short-term money market. As a female, you had to work for Chase Manhattan for 10 years to maybe be invited to join their superannuation—maybe be invited, as if being a female made you less qualified. The men got access to their superannuation when they signed on the dotted line of their contract. Why were women forced to wait 10 years? And then it might have only been on their invitation. Obviously I didn't hang around long enough to qualify for their superannuation.

This is the history. This is why we on this side are so passionate about superannuation. We want equality. We don't want to see homeless women on the street because they have had broken relationships and they don't have the superannuation they need for a dignified retirement.