The Australian Institute of Superannuation Trustees (AIST) has welcomed the proposed Housing Accord and the critical role that super funds can play as institutional investors as well as the announcement that paid parental leave (PPL) will increase to 26 weeks in 2026.
AIST Deputy CEO and General Manager, Advocacy Mel Birks said although the changes to PPL would help working parents, and particularly women, the Budget did not contain an announcement that super would apply to these payments.
“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,” Ms Birks said.
“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.
“The difference is so large that many women live in poverty after they leave the workforce and some of them become homeless, even if they are receiving the age pension.
“This move will make a difference to younger women to help reduce the risk of this shocking outcome, but more also needs to be done for the older women facing this grim reality.”
AIST, the peak body for the $1.6 trillion profit-to-member super sector, was also pleased to see the Government’s initiative to make $350 million in payments over five years, and more over the longer term, to facilitate institutional investment, including by superannuation funds, in affordable homes.
“Although super funds have been investing in the housing sector for some time, the new national Housing Accord will allow it to be done at the scale needed to make a real difference to communities across Australia,” Ms Birks said.
“It allows millions of Australians to build on the good work of profit-to-member funds where they earn good investment returns while at the same time do social good through their super funds.”
AIST also welcomed the recognition of menopause in the Women’s Budget Statement.
“We’re happy that the impact of menopause on women’s workforce participation has been recognised in this Statement but renew our call for a comprehensive assessment of the number of women affected and the associated economic, social and health impact so a co-ordinated plan can be developed,” Ms Birks said.
“We will continue to campaign strongly on this issue because of the role it appears to play in perpetuating the gender gap and, as the Treasurer commented, it is measuring the impact that matters.”
