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
Super returns fall into the red for FY22
Unless a recovery takes place in the coming weeks, super funds will experience their fifth negative financial year since the introduction of compulsory super. ...Read more
Superannuation
Could the Super Home Buyer Scheme ‘torpedo’ Aussie super savings?
Industry Super Australia has argued that the scheme would force funds to hold more cash. ...Read more
Superannuation
Super fund returns at risk of being negative for this financial year
With two months to go in the current financial year, super funds are only just in the black. ...Read more
Superannuation
Some Aussies are missing out on $17k in super every year
A report has found that hundreds of thousands of Aussies are at a significant financial disadvantage, foregoing $175,000 in super on average by retirement age. ...Read more
Superannuation
APRA chair says 'good enough isn't good enough' for super sector
Wayne Byres discussed the sector at a FINSIA event. ...Read more
Superannuation
Coalition's Super Home Buyer Scheme would 'jack up' housing prices
The Morrison government’s new plan has been met with a mixed response by industry stakeholders. ...Read more
Superannuation
Major parties back superannuation guarantee rise to 12 per cent
A renewed commitment from the Morrison government to back a 12 per cent lift to the superannuation guarantee as presently legislated, has been warmly welcomed by the superannuation sector as a “bipa...Read more
Superannuation
AustralianSuper injects $13bn investment into private equity
A new investment of $13 billion into private equity globally over the next two years from AustraliaSuper, the nation’s biggest superannuation fund, is expected to bolster long-term returns for its m...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Superannuation
Super returns fall into the red for FY22
Unless a recovery takes place in the coming weeks, super funds will experience their fifth negative financial year since the introduction of compulsory super. ...Read more
Superannuation
Could the Super Home Buyer Scheme ‘torpedo’ Aussie super savings?
Industry Super Australia has argued that the scheme would force funds to hold more cash. ...Read more
Superannuation
Super fund returns at risk of being negative for this financial year
With two months to go in the current financial year, super funds are only just in the black. ...Read more
Superannuation
Some Aussies are missing out on $17k in super every year
A report has found that hundreds of thousands of Aussies are at a significant financial disadvantage, foregoing $175,000 in super on average by retirement age. ...Read more
Superannuation
APRA chair says 'good enough isn't good enough' for super sector
Wayne Byres discussed the sector at a FINSIA event. ...Read more
Superannuation
Coalition's Super Home Buyer Scheme would 'jack up' housing prices
The Morrison government’s new plan has been met with a mixed response by industry stakeholders. ...Read more
Superannuation
Major parties back superannuation guarantee rise to 12 per cent
A renewed commitment from the Morrison government to back a 12 per cent lift to the superannuation guarantee as presently legislated, has been warmly welcomed by the superannuation sector as a “bipa...Read more
Superannuation
AustralianSuper injects $13bn investment into private equity
A new investment of $13 billion into private equity globally over the next two years from AustraliaSuper, the nation’s biggest superannuation fund, is expected to bolster long-term returns for its m...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
