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The government decision reinforces the gender pay gap, says an accounting body.
Rejecting parental super ‘hurts hundreds of thousands’: CPA
09 March 2022
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6 minute read
CPA Australia has joined the chorus of dismay about the government decision not to pay superannuation on taxpayer-funded parental leave and has called on Canberra to revisit the issue.
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“This decision will cause financial harm to hundreds of thousands of Australian women during their working lives and in retirement, including thousands of accountants,” said CPA Australia’s general manager external affairs, Dr Jane Rennie.
“We are beyond disappointed. We ask the Prime Minister to reconsider this decision ahead of the budget or subsequent election.”
The government’s Retirement Income Review found that paying super on parental leave would lessen the impact of career breaks taken by women to raise children. The idea has been supported by a raft of superannuation funds and industry bodies.
But the government has rejected the proposal, according to reports this week in the Sydney Morning Herald, with ministers concerned there would be only minor benefits for the amount of money required.
With 160,000 members and young women increasingly choosing to enter the accounting profession, CPA Australia said the decision smacked of unfairness and would leave women with second-class super.
“Australians are big fans of a fair go, but there’s nothing fair about this decision,” Dr Rennie said. “Women retire with smaller super balances than men, and that means less financial security. Time out of the workforce raising children contributes to the gender super gap.
“We don’t accept that paying super on parental leave won’t have a big enough impact for the amount of money required.
“It’s going to take a range of measures to address decades of gender inequity in Australia.
“We’ll be watching the upcoming budget closely to see if it includes meaningful measures to improve women’s economic participation and financial security.
“The Retirement Income Review canvassed paying superannuation on parental leave. The Productivity Commission recommended paying super on parental leave. Australians have a right to know why the government doesn’t think it’s worthwhile.”
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- Silly arguments like this debunk the pay gap myth. Why not pay paternity leave 50/50 to men and women? If mostly women are the financial beneficiaries of paid paternity leave as stated in this article, surely that's an inequality for men worth addressing? Unless you admit that the pay gap exists for very normal reasons and not discrimination.0
- No need to conflate this with an inflammatory issue. Inequality is bad for everyone.
Within your comment is a what I see as a consequential issue: men don't take enough paternity leave. That is partly due to discrimination, but is largely a cultural thing and it's important for both sexes that we improve it0
- "With 160,000 members and young women increasingly choosing to enter the accounting profession, CPA Australia said the decision smacked of unfairness and would leave women with second-class super." My goodness is this the accountants daily or the social justice warrior daily?1
- My goodness if you want more super make the choice to work the same hours as the staff who have more super work. Why do some women always want handouts they do not deserve.1
- "Australians are big fans of a fair go," Yea and so do businesses who are struggling to keep their heads above water. If you want the extra super just work the same hours as other staff. Why should you be given more than others who worked more hours based perceived bias.1
- Dr Jane Rennie how about looking at the economic impact of all these demands on small buisiness whom are already struggling beyoind belief.1
- "to address decades of gender inequity in Australia" Your choices have determined equality. Everyone is equal under the law. Be responsible for the choices you make and stop expecting the government to always step in.1
- How much more burden do we wish to place on small business who are struggling after COVID. Its not about inequality. The more you demand the more businesses will go to the wall. I would have thought CPA Australia would have thought about this form an economic perspective.0
- 12 weeks paid parental leave is currently $9,271. 10% SGC on this adds up to $927!
I don't think missing out on that "will cause financial harm to hundreds of thousands of Australian women".
Nothing like a bit of overblown hysteria to grab a headline........2- So their super will be about ~$5k less in retirement based on inflation of 3% and a super return of 6%.
Not worth worrying about- totally agree0- If a Financial Adviser used such statements in their recommendations (or ASIC reviewed their files and discovered such a shortfall) they'd be banned for several years.0
- The equality solution is obvious; encourage men to take as much parental leave as women. Then we're all equally screwed0
- Typical... There would be a Royal Commission if Men's super was substandard.
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