The Herald's View: Denying superannuation to recipients of government-funded parental leave risks entrenching inequalities in the retirement income system
the Morrison government has rejected the proposal to pay super to government parental leave recipients because it wouldn’t have “a big enough impact” on women’s economic security for the amount of money required.Women who take time off from their employment to have a child do not relinquish their identity as a worker. The time has come to treat parental leave as a workplace entitlement, similar to annual leave, not some sort of welfare payment.
Denying superannuation to recipients of government parental leave also risks further entrenching inequalities in the retirement income system.A growing share of large employers offer paid parental leave which includes the payment of superannuation. Research conducted recently by Workplace Gender Equality Agency found 49 per cent of employers with 100 employees or more now pay super on their parental leave schemes.
That trend means workers receiving only government parental leave – many of whom are relatively low paid women workers – risk being further left behind in their accumulation of superannuation savings.The failure to provide superannuation to those receiving government parental leave also undervalues the crucial contribution of new parents. Australia cannot afford to do this given the worrying decline in the fertility rate which last year hit an all-time low of 1.58 births per woman.
There is a strong case to boost financial support for new parents. Providing superannuation to those receiving government parental leave is one practical way to support mothers and improve women’s economic security.Bevan Shields sends an exclusive newsletter to subscribers each week.