11 December 2024
Attributable to HESTA CEO Debby Blakey
We welcome the Prime Minister’s announcement on the removal of the Child Care Subsidy Activity Test and the introduction of a more universally accessible education and care system.
HESTA has for many years strongly supported improving access to childcare as it can improve women’s workforce participation and developmental outcomes for children. Almost 80% of HESTA’s one million plus members are women, 42% of whom provide unpaid care, including childcare.
Removing the Activity Test enhances children's access to the health and developmental benefits of universal, accessible early childhood education and care, and removes a barrier to women’s greater workforce participation.
The reforms are expected to have a positive impact on working mothers and children, especially First Nations families. The Government estimates 126,000 more children may be able to access early learning. The reforms could also lead to opportunities for almost 40,000 parents to return to work or increase their working hours.
Women still provide the bulk of unpaid care. We believe these reforms – by removing a potential barrier to women’s workforce participation – can help lead to improved retirement outcomes for our members through increased super contributions. And help to narrow the gender super gap that sees women retire with, on average, about 25% less super than men.
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 $90 billion* in assets invested around the world.
*Information is current as at the date of issue.