Tammy Tyrrell (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. This month your government announced it would pay superannuation on government-funded paid parental leave. You described the measure as 'an investment in women's economic security'. Not that I need to remind you, but you said in your media release that women's economic security is 'a key feature of our economic plan'. Can you tell me a bit more about why it's so important to invest in improving the retirement savings of women?

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

I thank Senator Tyrrell for the question. It is an important announcement that we made. We know that women retire with between 22 and 30 per cent less superannuation than men at the point of retirement, and we know that women at retirement age are a significant group that fall into poverty. It's part of the fact that, throughout their careers, paid and as family carers—primarily carers in families—they have either had career breaks or been out of the workforce for long periods of time, and during that time when they've not been earning, when they've been caring, they have not been accumulating superannuation. This works in conjunction with the fact that highly feminised industries have traditionally been less valued and lower paid, so some of the work we're doing in aged care and in the care sectors, including in early childhood education and care, goes to that point. It's part of our economic plan. The point I was making in the media release was that this is one part of our response to driving gender equality and better economic equality for women.

Over time, it's not only become an issue of less money in retirement age; it's also become a point of tension about people feeling that the caring role that women primarily play is not valued across the economy. So that decision addressed both of those points. We know it's not a silver bullet for someone retiring tomorrow, but it will make inroads into the superannuation gender pay gap. At the same time as we're doing that, we have to do a whole range of other work in other areas to make sure women are getting a fair crack at super as well. (Time expired)

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

Senator Tyrrell, a first supplementary?

Tammy Tyrrell (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

As part of the announcement, the Treasurer said that paying super on government payments would mean 'a more dignified and secure retirement for more Australian women'. Given that 90 per cent of recipients of carer payments have no earnings and 70 per cent are women, would you consider paying superannuation on carer payments to also be an investment in women's economic security, which would also mean a more dignified and secure retirement for more Australian women, or is it different for carers?

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

I think I've been on the record saying there's no shortage of ideas that the government would like to fund, if we had room to do that. I acknowledge that, once we have addressed this anomaly—which is the only workplace entitlement that doesn't have superannuation paid on it—obviously there will be pressure and interest and advocacy around extending arrangements as we are getting in PPL more generally. Yesterday, we extended it to six months. The first question I got at a press conference was: when is it going to be 12 months? So I accept that, when you make inroads into these things, then comes what's next. The government will look at all of these matters. We're working with the Economic Inclusion Advisory Committee. They will have provided their advice to government about the next best opportunity to support and drive women's economic equality.

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

Senator Tyrrell, a second supplementary?

Tammy Tyrrell (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

Paying super on carer payments to a 30-year-old woman would reduce her pension payments by nearly $3, in real terms, for every dollar in super paid. She'll retire with greater economic security and save you money in the process. Genuinely, can you explain to me what the downsides of this proposal are? This helps the budget, this helps carers, and it means nobody will ever have to retire into poverty for the crime of caring for their dying parent in their last year of life.

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

One of the recommendations of the Women's Economic Equality Taskforce was to look at the interactions between payments, the tax system, and other policy measures the government provides to support women across their working lives. That includes working in the paid sense and/or working in the unpaid sense. We are looking at that work because we are interested in how all the intersections work together. There can be a disincentive for certain activity based on what it means for other payments—for carers payments and other income support payments as well. We have a long way to go to address some of the gaps that exist. We can't do it all overnight, or in one budget or in one decision. But we are absolutely committed to driving this forward and making sure that women get a better opportunity across the economy.