Superannuation is seen as a safety net for the future, but contributions for those on paid-parental leave aren't compulsory.
This comes as a shock to many, including one new mother who spoke to SBS.
"I was really shocked, I can't even believe that's a thing that happens. I mean we don't really have any other one, apprentices or anyone else who doesn't get superannuation paid on anything for employment. So I don't see why someone who is on leave for having a baby wouldn't get it."
It disproportionately affects women, who on average, retire with 140 thousand dollars less in their super balance than men.
Many feel like the current system is placing a strain on current and future opportunities.
"Again, speaking from my experience, my superannuation is nowhere near sufficient to support me on my own, if I didn't have my husband."
"We are pushing people back into work, earlier and earlier, and kids into daycare younger and younger. And speaking as someone who should be at work today, but isn't, because all three of my children are sick from being in daycare, where I wish I didn't have to have them. I think we could do a lot more and I think we need to do it better."
Treasurer Jim Chalmers has rebuffed a Greens offer to support a $2.3 billion clamp-down on wealthy Australians’ retirement savings.
This move could set up a second double dissolution election trigger if the minor party does not relent.
Adding superannuation to paid parental leave is Labor policy, re-endorsed at the party's national conference last month.
Despite posting a 20 billion dollar budget surplus, Finance Minister Katy Gallagher expressed the party's priority on the matter in July this year ((4 July 2023)).
"This is a priority when we can afford it and when we can make room for it in the budget, which I think goes to my earlier point about repairing the budget, getting rid of the waste and rorts, looking for savings where we can to return them back to programmes. So all that work is underway, so that you know as we go forward we can look to find room for priorities like that."
Greens Senator for Queensland, Larissa Waters, said paying superannuation on Paid Parental Leave would cost $200 million each year, less than ten percent of the $2.3 billion expected to be raised from the government’s proposed changes to superannuation tax concessions.
These changes are to lift the tax rate on earnings of superannuation above $3 million from 15 to 30 per cent from 2025‑26, and is expected to affect around 80 thousand people.
Senator Waters says the paid parental super reform is the least the government could do with these tax benefits.
"I'm somewhat baffled by the Treasurer's response. This is Labor party policy. Why are they waiting? What is the hold up? The Treasurer says he wants to do this but he's too poor to do it at the minute. Well you're wasting 313 billion dollars in tax cuts for the very wealthy, predominantly men I might add, why are you making women wait for a tiny amount of superannuation on their paid parental leave?"
Labor are arguing they have already raised government-paid parental leave from 18 to 20 weeks, accusing the Greens of playing politics.
Health Minister Mark Butler has expressed frustration with the pushback.
"Well look it's becoming increasingly difficult to distinguish frankly between the Greens party and the Liberal party, they seem to be determined to join up and say no to every sensible measure the government tries to put through the parliament. Now some sensible taxation arrangements for very high income superannuation. This is an important reform that's been laid out by the government now for many, many months. I encourage the Greens to get behind it."
This comes as several employer representative groups also criticised the employer's role in payments for paid parental leave in a report tabled by the Senate Education and Employment References Committee.
The Australian Council of Trade Unions has expressed concern about the recommendations, which suggest small businesses do not need to pay Parental Leave Pay instalments directly to their workers unless they opt to do so.
