In its pre-budget submission, the Association of Superannuation Funds of Australia (ASFA) has called for the introduction of a $5,000 super baby bonus payable directly into super accounts following the birth or adoption of a child.

The proposed payment, believed to benefit as many as 300,000 women per year, would be equivalent to the amount that a person would receive from Super Guarantee (SG) contributions on a $60,000 wage for one year. 

“While the superannuation system is well-designed and working for the majority of Australians, there is a significant gap of 23.4 per cent in superannuation balances between men and women as they approach retirement,” said ASFA chief executive Dr Martin Fahy.

According to a recent consumer survey undertaken by ASFA, over 80 per cent of respondents believe the government should take measures to boost the super balances of women who take time out of the workforce to have children.

“Broken work patterns, COVID-19, and the early release of superannuation, which was used to help get Australians through the pandemic, have eroded the retirement savings of low-income earners and women in particular,” said Dr Fahy.

“It is now essential that repair be undertaken to low-income earners and women’s retirement budgets through targeted assistance.”

AFSA noted that the super baby bonus would supplement proposals to pay SG on paid parental leave.