I welcome very much this opportunity to stand in strong support of the Treasury Laws Amendment (Payday Superannuation) Bill 2025. This is a simple and sensible reform with a single powerful purpose: to make sure Australians receive the retirement savings they are owed when they earn them. For too long our system has permitted a lag between when Australians work and when their superannuation is delivered into their accounts. That lag caused unpaid superannuation to grow and hardworking people, often the youngest, the lowest paid and indeed many women, to fall way behind in their retirement savings.

Superannuation is one of the great Labor achievements, a world-leading system that has helped deliver dignity and independence in retirement for literally millions of Australians. But that promise is undermined when people don't actually receive what they've earned. This bill closes that gap once and for all by requiring employers to pay super at the same time as wages. We are ensuring that workers' money goes where it belongs: into their super accounts, earning compounding returns for their future, not sitting in someone else's ledger. It's fair, it's practical, and this reform is long overdue.

I want to speak very plainly about what this bill does. From 1 July 2026, employers will be required to ensure superannuation contributions are received by an employee's fund at the same time that they pay their wages, effectively bringing super payments into each pay cycle, rather than pushing them out into the quarterly remittance schedule. The effect is immediate and practical. Workers will start earning returns on their retirement savings sooner, unpaid super will be easier for regulators to detect, and workers—especially those starting out in the workforce—will see more consistent balances in their accounts.

These are not abstract improvements. Think about the young nurse working night shifts at the John Hunter Hospital, the hospitality worker serving coffee at a cafe in Darby Street, the tradie finishing a long week on a Newcastle construction site, or the aged-care worker who looks after some of our most vulnerable citizens. When super is delayed, these people lose out twice: on the delayed contributions themselves, and on the missed compound interest that the contributions could have earned over a lifetime.

For someone who starts work at 25, getting super into their account sooner can make a meaningful difference over the decades. Treasury's modelling shows that the gains can be substantial over a working life. This bill is first and foremost an effort to reform in a fair and equitable manner. Superannuation is part of pay. It belongs to the worker from the moment the work is done. It should not sit uninvested and at risk because of outdated administrative practices. By bringing super into the pay cycle, this bill aligns the timing of payment with the reality of work and the expectation of workers that their employers' superannuation contribution is part of what they earn for their work.

Some say this is just an administrative change, but, as I've tried to argue, this is much more than that. It changes incentives. The current quarterly system can disguise noncompliance. When contributions are due only every three months, missed payments are harder to spot and harder to remedy quickly. Under payday super, the Australian tax office will be able to detect issues earlier. Employees and funds will see payment records that match the rhythms of peoples' working lives. This is how we reduce longstanding levels of unpaid super and protect the lifetime entitlements of working Australians.

To those small and medium employers who are concerned about implementation and compliance costs, I say this: the Albanese Labor government has heard you. This bill is framed with practical exceptions and transitional support in mind. This legislation provides reasonable timeframes for particular circumstances—for example, additional time for new employees and tailored arrangements for irregular payment patterns. The ATO has signalled that it will take an assisting approach during the transition, so businesses doing their best in a period of change will not be unfairly penalised. We must balance the needs of compliant small businesses with the rights of workers to have their super delivered on time—and that balance is reflected in the very design of this bill.

I also note the support this reform has received from the superannuation sector and the industry bodies. Peak super funds and industry groups have welcomed payday super because it's straightforward to administer from the fund's perspective and because it will improve outcomes for members, particularly young people and casual workers who change jobs frequently. When industry, regulators and the government can align behind reform that strengthens the foundations of retirement savings, we have an obligation to act.

Let me be clear about who benefits most. While all working Australians will be better off for faster payments and earlier compounding, the gains are concentrated amongst those who have been structurally disadvantaged by the existing system. That's women. That's young workers. That's casual workers, part-time workers and those in low-paid sectors like hospitality and retail. These cohorts are disproportionately affected by unpaid super and by loss compound returns.

Payday super is a small change with a big impact for fairness in retirement outcomes. It's a progressive change; modest in administrative terms, yet significant in social effect. For my part, representing Newcastle, I often hear of workers missing entitlements and of small businesses working heroically to do the right thing. This bill does not punish those who act in good faith. It makes the rules clearer, it brings forward payments that already belong to workers and it equips regulators to act earlier when employers do not meet their obligations. That clarity benefits employers and employees alike: fewer disputes, clearer record keeping and less backlog for the system. It's the right structural reform for an economy that now relies on more frequent pay cycles, digital payroll systems and real-time financial services.

There are legitimate questions about timing and implementation, as I indicated before. Employers need clear guidance, payroll providers need to be ready and software systems must be upgraded. That is why this bill and the accompanying policy measures include a reasonable lead time up to 1 July next year, so 2026, and an administrative framework that recognises operational realities. It's the government's responsibility and it is our job in this parliament to ensure the transition is managed carefully.

But transition is not a reason to delay the principle that super must be paid on payday. The sooner we enshrine that principle into law, the sooner workers balances will begin to reflect it. I know there will be opponents who argue the change is an unnecessary impost on business. I say to them: paying super on payday is not an imposition; it is a reform that modernises the law to the way Australian workplaces already operate in many sectors. Many employers are already making frequent super payments because that is simply how their payroll runs. And for those who must change processes, the government's measured approach, the industry engagement and the ATO guidance will ease that period of adjustment. And for workers who have had to chase unpaid super for years, sometimes decades, this bill is way overdue. Their lifetime retirement security should not be subordinated to administrative convenience.

I know this bill is going to be very welcome news for the thousands of workers in my electorate who have, over decades, experienced unpaid super. I think most members in this House would be shocked if they delved in to find out how many workers, how many families in their electorates have suffered as a result of allowing superannuation payments to be kicked down the road to quarterly or beyond. And for all of the reasons I have just outlined, where it is very hard to detect where those gaps in paid super are for people, it is costing working families, working men and women, literally thousands and thousands of dollars—money that is rightfully theirs and should be part of their retirement incomes. This bill is welcome news. It's about the national interest and community values. We are a country that values hard work and expects fairness in return; that's the social contract. Superannuation is not an optional charity; it's a statutory right that is attached to work. By ensuring contributions arrive when the work is done and paid for, we protect the dignity of labour, strengthen retirement outcomes and improve the integrity of the superannuation system. All those young people, people in precarious employment, people in low-paid jobs of retail and hospitality, and the women of Australia are going to thank us for this bill because this addresses the structural inequities that have existed for them, disadvantaging them time and time again.

In all honesty, I not only commend this bill to the House; I would find it almost incomprehensible for it not to be supported by members opposite, because that would be saying to the young workers of Australia, to those working in hospitality and retail and to the women of Australia, 'We don't really care that you don't have retirement incomes that are matching the work that you have done throughout a lifetime.' We saw what happened in COVID, when people withdrew superannuation for their livelihood. We saw what could have been a devastating pathway when the opposition, in the last term of parliament, suggested that people raid their superannuation funds to deal with any kinds of emergencies arising in life. It puts women especially in a very fraught and disadvantaged position. We already retire with hundreds of thousands of dollars less in our superannuation accounts than men. Let's not keep adding to that. Let's grab back the compounding impact of that disadvantage and say, 'You know what; we want you to have your money and collect compounding interest instead of disadvantage.' Let's back in reforms that are sensible, practical, fair and measured.
These are good reforms for workers. These are good reforms for business. We will work together to ensure the transition is one that is well supported because we want to see good outcomes here for everyone. This is a reform this House should get behind. I commend the bill to the House. For Newcastle families, nurses, carers and tradies, this bill is for you.