A promised plan aimed at minimising the gap between men’s and women’s superannuation has been welcomed by a central Victorian women’s advocate.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Labor has pledged that should it win the next election, people on Commonwealth Paid Parental Leave and Dad and Partner Pay payments will receive a superannuation contribution
The parental leave scheme does not currently pay anything towards superannuation.
Women’s Health Loddon Mallee executive officer Tricia Currie said the ability to build superannuation was what allowed for security in older age.
She said there were “big issues” for women in retirement, particularly in housing, because of the gender pay gap.
At the time of retirement Australian women have less than 60 per cent the amount of superannuation as men, and as a result, are more likely to experience poverty in old age.
“We really welcome very practical strategies that will start to close the gender pay gap,” Ms Currie said.
Labor’s deputy leader and spokesperson for women, Tanya Plibersek, has said the changes will make a woman with two children about $24,000 better off in retirement.
Bendigo financial planner John Fletcher, from Fletcher and Butler Financial Planning, said the details of the plan would determine how beneficial it was in practise, noting the quoted amount was not even a year’s income.
But Mr Fletcher said anything that boosted women’s superannuation was good.
Ms Currie said not only would such a plan help women in retirement, but it helped encourage fathers to take parental leave, too, giving more flexibility to families.
The Association of Super Funds of Australia says broken working patterns, such as taking time out of the workforce to care for children, is one of the causes of the super gap, noting it is most commonly women who take on caring roles in a family.
The organisation welcomed the announcement.
“Structural policy reform to protect and enhance the economic security of women in retirement is something that ASFA has long advocated for,” the organisation’s chief executive officer, Dr Martin Fahy, said.
“It is of critical importance to ensure that women are not condemned to experiencing poverty, and even homelessness, in retirement.”
Mr Fletcher said the issue of lower superannuation did not so much affect women coupled with men as it did their single counterparts.
He said it mostly meant women had to endure a lower standard of living.
Labor has also promised to phase out the minimum monthly income threshold of $450 that qualifies workers for the superannuation guarantee, which requires employers to pay super on top of wages.
Natalie Croxon
Reporter at the Illawarra Mercury, mostly covering social affairs. Previously of the Bendigo Advertiser, Northern Daily Leader and Quirindi Advocate. Our Watch award winner.
Reporter at the Illawarra Mercury, mostly covering social affairs. Previously of the Bendigo Advertiser, Northern Daily Leader and Quirindi Advocate. Our Watch award winner.
