Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance and Minister for Women. Taking time out of paid work to care of children is a normal part of working life for parents. We know that it is women who overwhelmingly pay a motherhood penalty as a consequence of this time out of the workforce. This penalty means that women earn less over their working life and, as a result, retire with less superannuation. How will the Albanese government's plan to pay super on government paid parental leave make a difference to women and their economic security?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Walsh for the question, and, again, everyone on this side of the chamber, including Senator Walsh, for their advocacy around paying super on PPL. It's part of Labor Party policy, and we are so pleased we have got the budget into a shape now where we can afford this important investment.

We know that one-third of the gender pay gap can be attributed to time spent caring for family and interruptions in full-time employment. Women with children face an average 55 per cent drop in earnings in their first five years of parenthood, while fathers' incomes don't change at all.

Last week we announced Working for Women: A Strategy for Gender Equality, and, as part of that and our commitment to driving gender equality in this country, we made the announcement that parents accessing Commonwealth paid parental leave will get an equivalent 12 per cent superannuation guarantee payment on top of their paid parental leave payment from 1 July 2025. We don't see this payment as a welfare measure, as some of those opposite have painted it; we see it as a workplace entitlement. We know the gender super gap that exists is between 22 to 32 per cent.

It has been an anomaly that the government paid parental leave hasn't included super on it, so it means women—and it is predominately women who are using that payment, although that may change with some of the changes that we've put in place and that were passed by the Senate this morning—paying another financial penalty for taking time out. The announcement was for two things: (1) because it was the right thing to do to fix that anomaly, and (2) we wanted to send a strong message that we value the caring role that parents play, and we wanted that to be reflected in the decision that we took on super on PPL.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Walsh, first supplementary?

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Under the Albanese Labor government the gender pay gap is now at 12 per cent, the lowest level in Australia's history. I understand the government is taking further measures to ensure that Australian women can achieve economic security throughout their lives. How else is the Albanese government taking action to improve women's economic equality and support cost-of-living relief for women?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Thank you very much for the question, Senator Walsh. This has been a clear priority for the government since being elected. Going back to my earlier answer to the first question asked today, it's the reason we've been getting the budget in better shape. We've been repairing it, removing waste and driving savings so that we can provide room for these important decisions that drive gender equality—so super on PPL. Obviously we've seen a number of other measures where we have increased investment. It might be on single parenting payments—again, 90 per cent of single parents are women—our investments in child care and early education and care, and our investment in wages for highly feminised industries, like aged care. It's all part of our focus on driving a better outcome for women or working for women in this country. It will remain a priority for this government as we continue to work through that national strategy.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Walsh, second supplementary?

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Minister, you've made it clear during your time as Minister for Women that listening to the views of women is an essential part of the policy process, including in developing the Albanese government's gender equality strategy Working for women. Why is it important to listen to women? And what difference does it make having women at decision-making tables?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

():  Thank you very much, Senator Walsh. I'm very proud, along with all my colleagues here and in the other place, to be a member of the first federal government that has a majority of members who are women. That of course hasn't happened by accident, and we know that there are still some political parties that struggle with the role they want women to play in their political party.

We've made a very clear decision to increase the number of women, and it has paid off. We have talented women that make up 50 per cent of the Labor government. It does matter and it does change decision-making. And it means that issues like driving gender equality are a real priority.

We have consulted and we have listened to women right around the country when finalising our strategy. We had round tables, we had surveys, we took feedback from thousands of women and women's organisations to make sure that we got this strategy right. I look forward to implementing it.