The 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 – the increases will allow millions more families to save enough for retirement than if the rate was frozen at 9.5%.
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.