Opposition backs industry calls for super payment to workers on parental leave
Federal Labor will look to introduce superannuation payments on paid parental leave should they win the next election.
Currently parental leave is the only leave type super does not have to be paid on. Should this be implemented, it will particularly benefit women’s nest eggs, given they are the one who take the most time off work after having a baby.
Chief Executive at Industry Super Australia told Oliver Peterson this will help address the gap between men and women and their “super savings.”
“It’s very old fashioned to think a woman who takes time out of her career to have a baby should miss out on an entitlement that is paid on every other type of leave,” he said.
Mr Dean estimates a woman with two kids would be at least $13,000 better off.
“As we know with super, the power of compounding interest means she will end up with a much bigger amount at the end.
“This is essentially a tax for taking time out of the workforce to have a baby.
“They’re getting penalised for it.”
In the latest budget, the Federal Government announced they will remove the minimum $450 per month threshold under which employers have not been required to pay super.
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