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Govt rejects paying super on parental leave
The Government is believed to be unlikely to pay superannuation on parental leave despite industry pressure, according to two anonymous Liberal sources.
As reported today in the Sydney Morning Herald, the unnamed Liberal members told the title that adding super to parental leave had been considered by ministers, but it did not get past the Budget process and through to Prime Minister Scott Morrison’s inner circle.
Retirement Income Review chair, Mike Callaghan, had supported adding super to parental leave in his report delivered to the Government in 2020, saying it would have a “small impact on narrowing the retirement income gap between some women and men, improving gender equity in [Super Guarantee] coverage”.
Industry super fund HESTA had supported the idea, saying that modelling had shown paying super on parental leave could see a person with an extra $14,000 in retirement.
Last week the Association of Superannuation Funds of Australia (ASFA) called for the Government to support a commitment to equalise super for men and women by 2030.
ASFA senior policy adviser, Helena Gibson, said: “There is strong support among Australians for policy action. Results of a recent ASFA survey show that more than 80% of people agree that government should try to boost the super balances of women who take time out of the workforce to have children”.
Women in Super (WIS) had also called for a gender analysis of future Budget decisions to ensure that adverse impacts on women were assessed as part of policy design.
Super Review had reached out to the minister for superannuation, financial services and the digital economy, Senator Jane Hume, for comment.
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