Some good news for working parents, with the Federal Government announcing superannuation will finally be added to the Commonwealth’s paid parental leave scheme.
It means that from July next year, working mums will receive 12 per cent superannuation on top of their 20 weeks of government-funded parental leave.
The historic change is designed to close the retirement savings gap between men and women, with women currently retiring with 25% less superannuation than men.
It will also give women ongoing financial support when they decide to have children.
Super Members Council CEO Misha Schubert has welcomed the move, describing it as “a major stride forward on gender equity” that will boost a mother of two’s retirement savings by about $14,500.
“This watershed reform will make a powerful difference to the lives and retirement incomes of generations of Australian women in the decades ahead – and narrow the gender gap at retirement,” Ms Schubert said.
“It will powerfully propel Australia closer towards the goal of ending the financial ‘motherhood penalty’ in the early years of having children, which has a compounding effect across women’s working lives.
“It’s the next big step on the road to retirement gender equity and Australia must continue to take bold actions like this to ensure all women can have a financially secure retirement.”
More than 180,000 families are expected to benefit from the scheme, which is expected to cost the Government about $200m a year.
