Retirement
Super shortcoming leaves mums millions worse off
Queensland parents are losing out when it comes to retirement due to poor leadership from the federal government, a new report has suggested.
Super shortcoming leaves mums millions worse off
Queensland parents are losing out when it comes to retirement due to poor leadership from the federal government, a new report has suggested.
Super sector advocates say that a failure by the federal government is costing Queenslanders hundreds of millions in potential retirement savings.
According to a recent report by Industry Super Australia (ISA), Australian mums are paying the price for the government’s failure to lead by example when it comes to parental leave and superannuation.
Unlike most other forms of paid leave, parental leave does not explicitly require employers to contribute towards superannuation.
The ISA said that less than 7 per cent of enterprise agreements include this provision, and the government’s own Commonwealth Parental Leave Pay scheme isn’t among them.
As a result, the report suggested that as many as 1.45 million Australians who received Commonwealth Parental Leave Pay over the past 10 years may have sacrificed thousands in individual retirement savings.
When it comes to Queensland, the total cost is estimated to be around $320 million in lost retirement savings.
“Queensland women are being made to sacrifice their retirement savings to have children,” Industry Super Australia advocacy director Georgia Brumby said.
The ISA said that their analysis found that more than 280,000 Queensland mothers received Commonwealth-paid leave pay over the past 10 years.
“It’s hard enough trying to juggle work and raising a family — it’s not fair that thousands of women are also missing out on thousands from their super as well,” Ms Brumby said.
In the most recent financial year, the organisation estimated that approximately 33,460 Queensland women missed out on potential super payments because they took advantage of the Commonwealth Parental Leave Pay scheme.
Describing the failure of the federal government to lead on superannuation in paid parental leave as a “super sting”, the ISA said that an individual Queensland mother of two could be $14,000 worse off when it comes their final retirement savings.
The industry body said that mothers in the electorate of Lilley were particularly affected, losing out on an estimated total of $13 million in potential superannuation payments.
More broadly, the ISA noted that Queensland women usually have around 30 per cent less in their super fund than men in the state.
While the median super balance of a Queensland woman approaching retirement is about $131,500, the median balance of a Queensland man in the same situation is around $50,000 higher.
“This is an opportunity for the Prime Minister to lead the way and ensure super is paid on parental leave. Otherwise, we’ll continue to see too many women retire into poverty,” Ms Brumby said.
RELATED ARTICLES
About the author
About the author
Superannuation
Expanding super for under-18s could help close the gender super gap, says Rest
In a push to address the gender disparity in superannuation savings, Rest, one of Australia's largest profit-to-member superannuation funds, has called for a significant policy change that would allow ...Read more
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
Superannuation
Rest appoints experienced governance expert to bolster superannuation fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Ed Waters as the new Company Secretary. Waters, who brings with him over 15 years of extensive ...Read more
Superannuation
Small businesses brace for cash flow challenges as Payday Super becomes law
With the new Payday Super legislation now enacted, small businesses across Australia are preparing for a significant shift in how they manage superannuation contributions. The law, which mandates a ...Read more
Superannuation
Rest launches Innovate RAP to support fairer super outcomes for First Nations members
In a significant move towards reconciliation and inclusivity, Rest, one of Australia's largest profit-to-member superannuation funds, has unveiled its Innovate Reconciliation Action Plan (RAP)Read more
Superannuation
Payday super legislation promises fairer retirement for part-time and casual workers
In a landmark development for the Australian workforce, the recently passed Payday Super legislation is set to transform the retirement landscape for countless part-time and casual workersRead more
Superannuation
Payday Super passes as Employment Hero, OZEDI and Zepto unite to help small businesses meet new seven-day payment rule
With the Payday Superannuation Bill officially passing through Parliament, Australian businesses are now less than eight months away from a major shift in how superannuation contributions are made — ...Read more
Superannuation
Expanding super for under-18s could help close the gender super gap, says Rest
In a push to address the gender disparity in superannuation savings, Rest, one of Australia's largest profit-to-member superannuation funds, has called for a significant policy change that would allow ...Read more
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
Superannuation
Rest appoints experienced governance expert to bolster superannuation fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Ed Waters as the new Company Secretary. Waters, who brings with him over 15 years of extensive ...Read more
Superannuation
Small businesses brace for cash flow challenges as Payday Super becomes law
With the new Payday Super legislation now enacted, small businesses across Australia are preparing for a significant shift in how they manage superannuation contributions. The law, which mandates a ...Read more
Superannuation
Rest launches Innovate RAP to support fairer super outcomes for First Nations members
In a significant move towards reconciliation and inclusivity, Rest, one of Australia's largest profit-to-member superannuation funds, has unveiled its Innovate Reconciliation Action Plan (RAP)Read more
Superannuation
Payday super legislation promises fairer retirement for part-time and casual workers
In a landmark development for the Australian workforce, the recently passed Payday Super legislation is set to transform the retirement landscape for countless part-time and casual workersRead more
Superannuation
Payday Super passes as Employment Hero, OZEDI and Zepto unite to help small businesses meet new seven-day payment rule
With the Payday Superannuation Bill officially passing through Parliament, Australian businesses are now less than eight months away from a major shift in how superannuation contributions are made — ...Read more
