POWERED BY MOMENTUM MEDIA
Budget 2022: ‘Watch this space’ on super on paid parental leave
Superannuation on paid parental leave remains on the Government’s agenda, according to assistant Treasurer Stephen Jones, despite its omission from the Budget.
Last night, Treasurer Jim Chalmers announced paid parental leave would be extended from 18 weeks to 26 weeks but stopped short of announcing that super would be paid on it.
This was a measure that had been called for by several super organisations.
In discussion with the Financial Services Council (FSC), Jones said it was about “finding headroom” to fund it.
“Of course we want to do super on paid parental leave,” he told FSC chief executive, Blake Briggs.
“There’s not a person in Government who doesn’t want to bring it in but it’s about finding the headroom and being able to line it up. We couldn’t do that in this Budget. But everyone, including the Prime Minister, is committed to trying to find a way to do this so watch this space.”
Mel Birks, deputy chief executive of the Australian Institute of Superannuation Trustees, said: “It is disappointing that 11 years after paid parental leave was introduced, it is the only paid leave that does not have super paid on it. We wonder how long parents will have to wait until this anomaly in the retirement savings system is rectified.
“It perpetuates the gender gap that sees women retiring with 40% lower super balances than men on average because they spend more time out of the workforce caring for children and other family members.”
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
The central bank has served up a disappointment for punters on Melbourne Cup Day.
The superannuation industry will be judged by its member services rather than how effectively it accumulates wealth, according to Stephen Jones.
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
