Budget missing ‘fundamental’ super reforms, says HESTA
Industry fund HESTA has welcomed measures aimed at improving women’s workforce participation but believes more must be done to address gender inequities in the super system.
In a recent statement, HESTA chief executive Debby Blakey said that while the measures announced in the budget aimed at improving the workforce participation of women will help to improve retirement outcomes, there are fundamental reforms needed to improve gender equity in super.
Ms Blakey said there are important reforms Australia’s next government should deliver in its first term.
“These include paying super on Commonwealth paid parental leave and introducing a superannuation carer credit for new parents to help get their super balances back on track following unpaid parental leave,” she said.
Ms Blakey said recent HESTA research revealed that nine in 10 of the more than 2,300 members surveyed strongly agreed that changes were needed in Australia’s super system to boost women’s financial security in retirement.
Almost eight in 10 members supported a super carer credit where the government makes a super contribution to fill part of the super gap that arises during unpaid parental leave, she noted.
“Our super system has a persisting gender blind spot that sees women retire with almost a third less super than their male counterparts,” said Ms Blakey.
“Eighty percent of HESTA members are women, and those who raise children continue to pay an unfair financial penalty through inadequate super balances, leaving too many vulnerable to poverty as they age.”
She also highlighted the importance of improving the quality and sustainability of aged care jobs and the financial future of those working in the sector.
“This is vital to helping attract and retain the skilled and talented people we will need to provide high-quality care for older Australians,” she said.
“A strong aged care system is a vital piece of Australia’s social infrastructure that benefits all working Australians who will, at some point either directly or through their loved ones, have to rely on these services.”
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.