22 August 2024
Attributable to HESTA CEO Debby Blakey:
We welcome today’s introduction of the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 into Parliament. This milestone brings us one step closer to addressing a longstanding gender-blind spot in our retirement system.
For more than 13 years, HESTA – along with many other sector voices – tirelessly advocated for this important equity measure.
In March, we were thrilled to welcome the Federal Government’s announcement that super will be paid on the Commonwealth Parental Leave Pay Scheme, which will boost women’s retirement savings and help close the gender super gap.
More than 80% of our one million-plus members are women, with 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 to their retirement accounts, narrowing the gender super gap and making Australia’s super system fairer.
Background:
- Independent modelling (conducted by Laneway Analytics in February 2024) found Australian mums have missed out on $3.3 billion in super savings at retirement from taking time out of the workforce to have children.
- This modelling estimates the amount of money that would presumed be primarily in the hands of women as of 31 December 2023, if super had been paid on Parental Leave Pay since it was introduced on 1 January 2011. Estimated actual spend figures by the government on Parental Leave Pay were taken from archived budget papers, and multiplied by the SG rate at the time, then further compounded at 6% pa.
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 $86 billion* in assets invested around the world.
*Information is current as at the date of issue.