Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to table an explanatory memorandum relating to the bill.

Leave granted.

I table an explanatory memorandum, and I seek leave to have my second reading speech incorporated into Hansard.

Leave granted.

The speech read as follows—

For background

The Superannuation Guarantee (Administration) Amendment (Frontline Emergency Service Workers) Bill 2025 (the Bill) increases the superannuation guarantee rate for firefighters and paramedics by 4.4 per cent to match the base rate of superannuation contributions provided to Australian Defence Force (ADF) personnel. This is intended to set a national minimum rate of superannuation contributions for firefighters and paramedics, either through legal effect or through symbolism depending on the jurisdiction.

Firefighters and paramedics undertake physically demanding work in uncontrolled emergency settings with community safety and lives depending on their ability to efficiently and effectively undertake their duties. Most firefighters and paramedics who do not promote to an Officer rank feel a responsibility to retire before the age of 60 so that the effects of aging don't place their colleagues' or community's safety at risk.

The specialisation of firefighter and paramedic skills mean that they are not transferable to other industries. Retired firefighters and paramedics find it difficult to find other work with a similar rate of pay. As a result of early retirement, the financial security of firefighters, paramedics, and consequently their families is significantly diminished when compared to other workers in other industries and sectors.

Modelling by The Australia Institute demonstrates that to close this financial gap in retirement savings, that superannuation contributions in excess of 20 per cent would be required. An increase of 4.4 per cent would raise the superannuation guarantee rate to 16.4 per cent for firefighters and paramedics. Whilst this falls short of a complete resolution of the superannuation shortfall, it would bring parity with ADF personnel—who are subject to comparable physical and mental workplace pressures and stressors—and would be seen as a meaningful step forward by frontline emergency service workers.

On commencement

The Bill commences the day after the day on which it receives Royal Ascent. It should be noted however that the practical effect of the Bill commences on 1 July 2025.

On the structure

The Bill provides scope to the legal effect of the Bill by defining a firefighter employee and firefighting duties, and a paramedic employee and paramedic duties.

With reference to a firefighter employee or a paramedic employee, the number 4.4 is added to the existing superannuation guarantee rate table set out at s.19(2), which is 12 from 1 July 2025. Therefore, from 1 July 2025 the applicable superannuation guarantee rate for the specified employees would be 16.4 per cent.

On the scope

The Bill applies to firefighters and paramedics, but not police. Firefighter and paramedic unions have undertaken research to verify the need for additional superannuation and requested to be included in the Bill, whilst police associations declined to participate in research that would evidence the need for additional superannuation and declined to be included in the drafting of the Bill.

The Bill is based on evidence and is in line with the wishes of the relevant representative organisations at the time of drafting.

On the implementation of scope through definitions

The Bill provides for additional superannuation to be paid for employees employed as a firefighter or employed as a paramedic. To provide some certainty, the Bill would also provide the higher rate of superannuation to employees undertaking duties that are similar to the core duties of a firefighter or a paramedic.

The duties of a firefighter are focused on activities related to firefighting operations and fire prevention operations, whilst the duties of a paramedic include the provision of emergency medical transport and the provision of emergency medical care outside of a health facility. This provides further guidance on what kinds of work are intended to be covered, without solely relying on job titles or common understandings, which are both often subject to gradual change over time.

On the appropriation and taxation status

The Bill does not contain an appropriations clause, nor does the Bill itself impose taxation or alter the rate of taxation. As such, this is not considered to be an appropriations Bill or an imposition of tax Bill

On the effect in different jurisdictions

The effect of the Bill would be varied in different jurisdictions due to State Governments' constitutional jurisdiction over industrial relations legislation. As a result, the Bill will have direct legal application, indirect application, or no application in different jurisdictions. This is in line with the intention of setting a legal and moral basis for a national minimum rate of superannuation payments for firefighters and paramedics.

The Bill would have direct legal application in the following jurisdictions:

By virtue of state legislation or industrial instruments referring to the Superannuation Guarantee (Administration) Act 1992, the Bill would also have effect in:

The Bill would have no immediate effect in the following jurisdictions:

Superannuation Guarantee (Administration) Act 1992

The vast majority of firefighters and paramedics whose superannuation would not be impacted by the Bill are considered to already be in receipt of superior superannuation benefits. There are two jurisdictions which are not affected by the Bill, which are not considered to have superior superannuation benefits.

The first is Norfolk Island for whom there are jurisdiction-wide special arrangements with regard to the rate of superannuation payable.

The second is firefighters in Queensland who are in receipt of 14.5 per cent superannuation contributions. The application of 14.5 per cent superannuation for firefighters in Queensland state legislation replaced the existing reference to the Superannuation Guarantee (Administration) Act 1992. Section 7 of the Superannuation Guarantee Charge Act 1992 outlines that if the Commonwealth were to impose tax on a State that exceeds the Commonwealth's legislative power, then the intention is for the tax not to be imposed. This means firefighters in Queensland would continue to receive 14.5 per cent as prescribed in state legislation.

It is envisaged that the passage of the Bill will assist firefighters in Queensland to negotiate more favourable superannuation benefits with the Queensland government in lieu of the Bill having direct application.

I seek leave to continue my remarks later.

Leave granted; debate adjourned.