Retirement
Businesses encouraged to pay super on parental leave to enact policy change
Retirement
Businesses encouraged to pay super on parental leave to enact policy change
A leading not-for-profit is leading the call to pay super during parental leave.
Businesses encouraged to pay super on parental leave to enact policy change
A leading not-for-profit is leading the call to pay super during parental leave.

Not-for-profit organisation Growing Potential has announced it would pay full super on parental leave for all of its staff and has encouraged other organisations to follow its lead in an effort to enact government policy change.
All of the community services provider’s part-time and full-time employees, 91 per cent of whom are women, will continue to receive regular superannuation payments during parental leave for a period of up to 24 months.
“It’s blatantly clear that more needs to be done by all governments to improve gender equality for women at work and the superannuation system,” said Growing Potential chief executive Otto Henfling.
“Government – and businesses, even if on their own accord – need to stop penalising women who take time out of paid work to raise children, at a cost of sacrificing thousands in their retirement savings.”

The government’s Paid Parental Leave Scheme allows working parents to receive up to 18 weeks of pay at the national minimum wage but is the only type of leave that does not attract super.
Industry Super Australia said that up to 1.45 million Australians who have received parental leave pay over the past 10 years have missed out on super payments, with a mother of two estimated to be $14,000 worse off in retirement.
“I am calling on leaders of other organisations – especially those within female-dominated work sectors – to also take a proactive and best practice approach by continuing to pay superannuation on parental leave,” said Mr Henfling.
Growing Potential employee relations coordinator Ashleigh Bender said she was not aware that her super contributions would stop when she had her first child in 2018 and initially was not significantly concerned about the issue.
“Now, as a mother and since my recent promotion to the employee relations team working directly in the space, I realise just how crucial the continuation of superannuation contributions is to my retirement savings,” she said.
“I’ll be going on parental leave in April to have my second child, and I feel secure knowing I’m not going to be further disadvantaged, and also proud that I work at an organisation that cares about my future in 30 years’ time.”
The organisation cited data from the ATO that indicated that the median super balance of men at or approaching retirement was $178,808 during 2018-19, 30 per cent higher than the $137,051 recorded for women.
“Not-for-profit and for-profit organisations need to act now to improve gender equality for women at work,” concluded Mr Henfling.
“Otherwise, Australian women will continue to pay the price and retire with less than men for decades to come.”

Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more

Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more

Superannuation
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more

Superannuation
SuperAPI co-founder criticises Labor's superannuation tax as 'sneaky tax on young people'
The co-founder of SuperAPI has labelled Labor's proposed tax on superannuation balances above $3 million as a "sneaky tax on young people, tomorrow" disguised as a policy targeting wealthy retirees ...Read more

Superannuation
Election policies could reshape Australia's superannuation landscape, expert warns
Competing superannuation policies from Australia's major political parties could have significant implications for investors and retirees, according to a financial expert. Read more

Superannuation
Industry leaders weigh in on concessional super tax as Budget confirms $55bn investment
Changes to the taxation of superannuation earnings and contributions have drawn mixed responses from financial and payroll sector leaders, as the Federal Budget confirms over $55 billion in ...Read more

Superannuation
Call for indexation on super tax cap as $3m threshold draws criticism
A senior executive in the superannuation technology sector has criticised the Federal Government for failing to index the proposed $3 million superannuation tax cap, arguing the measure will unfairly ...Read more

Superannuation
Rest members back calls for fairer superannuation rules ahead of Federal Budget
Rest has called on the Federal Government to implement superannuation reforms aimed at improving fairness across the system, after member survey results showed strong support for a range of proposed ...Read more

Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more

Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more

Superannuation
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more

Superannuation
SuperAPI co-founder criticises Labor's superannuation tax as 'sneaky tax on young people'
The co-founder of SuperAPI has labelled Labor's proposed tax on superannuation balances above $3 million as a "sneaky tax on young people, tomorrow" disguised as a policy targeting wealthy retirees ...Read more

Superannuation
Election policies could reshape Australia's superannuation landscape, expert warns
Competing superannuation policies from Australia's major political parties could have significant implications for investors and retirees, according to a financial expert. Read more

Superannuation
Industry leaders weigh in on concessional super tax as Budget confirms $55bn investment
Changes to the taxation of superannuation earnings and contributions have drawn mixed responses from financial and payroll sector leaders, as the Federal Budget confirms over $55 billion in ...Read more

Superannuation
Call for indexation on super tax cap as $3m threshold draws criticism
A senior executive in the superannuation technology sector has criticised the Federal Government for failing to index the proposed $3 million superannuation tax cap, arguing the measure will unfairly ...Read more

Superannuation
Rest members back calls for fairer superannuation rules ahead of Federal Budget
Rest has called on the Federal Government to implement superannuation reforms aimed at improving fairness across the system, after member survey results showed strong support for a range of proposed ...Read more