The recent Federal Budget has increased women’s savings by billions by not messing with the legislated super increase and mandating that super is paid to all part-time workers.
But in a post Mother’s Day sting the government has refused to pay super on Commonwealth paid parental leave – more than 90% of which would be paid to women. Women retire with a third less super than men, a big driver is the time women take out of the paid workforce for unpaid caring – if the government was serious about closing the gender super gap they would get super paid on every dollar earnt, including parental leave.
The Super Guarantee rate will lift to 12% by 2025 as legislated based on the budget numbers, this increases will allow millions more families to save enough for retirement than if the rate was frozen at 9.5%. The next increase in the SG is on July 1 this year when the rate increases to 10%.
Women on low to middle-incomes will get the super rate increase in the greatest numbers so lifting the rate is also an important step to bridging the gender savings gap. The $85,000 savings boost the typical 30-year-old woman will get from the super rate increase is an important step to ensure fewer women face economic insecurity at retirement.
ISA will continue to campaign to improve super outcomes for all Australians. A copy of their media release is linked below.