Proposed amendments by the Coalition to the government’s legislation on superannuation for Commonwealth Paid Parental Leave (PPL) have been slammed by unions, including the ANMF.
The Coalition’s proposals would see workers, mostly women, tap into their retirement savings by cashing out of super on Commonwealth PPL through taking a lump-sum or extra leave.
The federal government has committed to paying 12% superannuation on Commonwealth Paid Parental Leave from 1 July 2025.
The Australian Council of Trade Unions (ACTU) has warned the Coalition’s proposed amendments will worsen working women’s financial security and widen the already significant gender gap in superannuation savings.
Australian women currently retire with an average of 25% less superannuation than men.
Having no superannuation on Commonwealth PPL costs Australians tens of thousands of dollars in their retirement due to the absence of compounding interest on retirement savings when parents take time off work to care for their children.
Women with children face an average 55% drop in earnings in their first five years of parenthood.
Unions have long campaigned for superannuation to be paid on PPL to improve women’s workforce participation and retirement incomes.
“For over a decade, the ANMF has fought long and hard for PPL, better super and other entitlements to help achieve gender equity in the workforce,” said ANMF Federal Assistant Secretary Lori-Anne Sharp.
“Women comprise 89% of the Australian nursing and midwifery workforce, who, on average can retire with up to 40% less super than men, and that must change if working women have any chance of reaching a secure retirement with a comfortable standard of living.”
Under the Coalition’s proposed amendment, new parents would be forced to choose between security and dignity in retirement and support for their newborn child, said ACTU President Michele O’Neil.
“Adding super to Commonwealth Paid Parental Leave is a critical step in ensuring that Australian women can be free from poverty and live with dignity in retirement. Denying the payment of super on Commonwealth Paid Parental Leave will only widen this gap and condemn more working women to poverty in retirement.
“No one should be forced to choose between supporting their babies now and their own financial security in retirement. Unions know we can and should do both.”
