7 March 2024
Attributable to HESTA CEO Debby Blakey:
It’s fantastic to welcome today’s Federal Government announcement that super will be paid on the Commonwealth Parental Leave Pay scheme, addressing a longstanding gender-blind spot in our retirement system.
For more than 13 years HESTA has tirelessly advocated for this important equity measure, which will give women’s retirement savings a much-needed boost and help close the gender super gap.
More than 80% of our one million-plus members are women, many working in typically lower-paid industries such as aged care or early childhood education. Paying super on paid parental leave will help our members add much-needed dollars to their retirement accounts, narrowing the gender super gap and making Australia’s super system fairer.
While today’s announcement is a significant step forward for women’s financial security in retirement, there is still more work to be done to close the gender super gap.
We'll keep pushing for policy makers to make improving women’s retirement outcomes a top priority. We’re continuing to advocate for other key equity measures that can help improve retirement outcomes for our members, and women. Lower-income earners, including many women, continue to pay more tax on their super contributions than their wages. That’s why we support updating the Low-Income Super Tax Offset (LISTO) to reflect current tax and super settings.
We have two clear asks of Government. Firstly, that they increase the maximum income eligibility for LISTO from $37,000 per annum to the top of the second income tax threshold, currently $45,000 per annum. And secondly, aligning the amount of the offset to the Super Guarantee, would help make a difference for the retirement savings of women and low-income earners across Australia.
Ends.
About HESTA
HESTA is one of the largest superannuation funds dedicated to Australia’s health and community services sector. An industry fund that’s run only to benefit members, HESTA now has more than one million members (around 80% of whom are women) and currently manages approximately $82 billion* in assets invested around the world.
*Information is current as at the date of issue.