Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Shake-up of super payments looming if Labor elected

super payments, money, Australian dollars

The federal opposition plans to make changes to the superannuation guarantee payments system for women, in an effort to address the current gender savings gap.

Opposition Leader Bill Shorten this morning announced that Labor will introduce superannuation guarantee (SG) payments on the 18 weeks of government paid parental leave (PPL) and phase out the $450 monthly pay threshold for eligibility for SG payments.

Currently, women retire with an average of 47 per cent less superannuation than their male counterparts, down largely to career breaks and the 16 per cent gender pay gap.

So far, the policy position has received support from peak superannuation bodies, like the Association of Superannuation Funds of Australia (ASFA).

Advertisement
Advertisement

“Structural policy reform to protect and enhance the economic security of women in retirement is something that ASFA has long advocated for. It is of critical importance to ensure that women are not condemned to experiencing poverty, and even homelessness, in retirement,” said ASFA CEO Dr Martin Fahy.

“This recognises that women, on average, live longer than men and also tend to bear the load of caring responsibilities, especially for young children, and as a consequence experience more broken working patterns.”

Super funds like HESTA, an industry super fund, are also throwing their support behind the move from Labor.

“This is a comprehensive package of measures to address the gender super gap and it’s pleasing to see reforms we’ve long supported taken up such as phasing out the antiquated $450 minimum monthly super threshold and considering the impact of future super changes on women,” said HESTA CEO Debby Blakey.

Shake-up of super payments looming if Labor elected
super payments, money, Australian dollars
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Dr Terry Dwyer, Dwye... - She is quite right of course. Returns to both capital and labour incomes are much reduced by taxation and it has increased enormously since the.......
Anonymous - A Bad call by the RBA. Lower interest will not stimulate the economy any more at 1.25% than at 1.5%, which was already too low. The imminent election.......
Shelly H - Im with ING, have a Mortgage Simplier Account and they haven't dropped my interest rate. Where is this information coming from......or is it for new customers only!!....
Anonymous - agree entirely and would add that putting the money into super locks it away and gives the government control over you and your money. The 'blue sky'.......