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.
About the author

About the author


Superannuation
Super funds rethink strategy as APRA's performance test hits a fork in the road
The latest performance test results have reignited debate over Australia’s superannuation benchmarking regime and prompted a formal government review. Behind the headlines, boards are quietly rewiring ...Read more

Superannuation
Aware Super enhances digital tools for financial advisers, boosting efficiency and client engagement
Aware Super has unveiled a suite of new digital features designed to streamline the workflow for financial advisers and their clients. This significant upgrade includes direct data feeds to Xplan and ...Read more

Superannuation
Super funds flip the script as APRA's performance test sparks strategic overhaul
Australia’s performance test has lifted the floor on retirement outcomes—and divided the industry in the process. After early shockwaves, failure rates have fallen and fees have trended down, but ...Read more

Superannuation
Rewiring Australia’s super performance test: from compliance brake to capital engine
Can an accountability tool double as a nation-building lever? Canberra’s review of the superannuation performance test aims to preserve member protection while freeing funds to back long-dated assets ...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
Super funds rethink strategy as APRA's performance test hits a fork in the road
The latest performance test results have reignited debate over Australia’s superannuation benchmarking regime and prompted a formal government review. Behind the headlines, boards are quietly rewiring ...Read more

Superannuation
Aware Super enhances digital tools for financial advisers, boosting efficiency and client engagement
Aware Super has unveiled a suite of new digital features designed to streamline the workflow for financial advisers and their clients. This significant upgrade includes direct data feeds to Xplan and ...Read more

Superannuation
Super funds flip the script as APRA's performance test sparks strategic overhaul
Australia’s performance test has lifted the floor on retirement outcomes—and divided the industry in the process. After early shockwaves, failure rates have fallen and fees have trended down, but ...Read more

Superannuation
Rewiring Australia’s super performance test: from compliance brake to capital engine
Can an accountability tool double as a nation-building lever? Canberra’s review of the superannuation performance test aims to preserve member protection while freeing funds to back long-dated assets ...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