Barbara Pocock (SA, Australian Greens) Share this | Link to this | Hansard source

I rise to speak to the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024. I can't remember when I first made a speech about the need for super on paid parental leave, but it was at least a decade ago—soon after PPL began in 2011—along with so many other women and advocates who have pushed so hard for this change.

The Greens welcome Labor's decision to finally get on board with the Greens' policy to pay superannuation on paid parental leave. For years we have been calling on the government to put their money where their mouth is on gender equality and to pay super on parental leave. We have even seen our own amendments to do this very thing rejected by Labor. While we are relieved the government is making this change, it is shameful it is making women wait until 2025. Paying super on paid parental leave is a simple yet very important change to make the super system more equitable, particularly for women. The evidence from community groups, academics and the work and care inquiry I chaired is so clear: super on PPL is necessary for improving gender equity in Australia. Parental leave is currently the only leave entitlement paid without superannuation. There is not a single reason justifying this double standard, and there are so many reasons supporting paying super on parental leave. It remains the only leave that is not at full wage replacement.

I chaired the Senate Select Committee on Work and Care, where we heard evidence about the impacts of the superannuation gender gap. The ACTU told the committee that women, on average, retire with super balances that are 47 per cent lower than men's. Missing out on super while taking parental leave contributes very significantly to this big gap. We heard from women, carers, older people and people who live in fear of poverty in old age who are worried that their super accounts will not be sufficient to support them during retirement. A grandmother, elder carer and permanent full-time worker told us: 'As a parent, grandparent and caregiver, full-time worker and unfortunately divorced, I feel like I'm running on empty, but the bills have to be paid. I worry my super won't cover me enough in retirement, even though I pay extra into it—stressed, tiredness, never very far away.' Professor Alison Preston told the committee of the inequity perpetuated by not paying super on paid parental leave when she said:

If a male has had a child, it has no bearing on their superannuation estimates. There is no difference with the superannuation of male counterparts who have never had a child. If a woman has had a child then her earnings are around 16 per cent less.

Sixteen per cent! It is with a collective sigh of relief that we welcome the government's decision to finally pay super on parental leave. But even with this change to the PPL arrangements in this country, Australia remains well behind the rest of the world on paid parental leave and gender equality more broadly.

During the work and care inquiry, we heard definitive evidence from stakeholders about the consequences of Australia's inadequate Paid Parental Leave scheme. Our existing scheme promotes and entrenches prevailing stereotypic gender roles: mothers as primary carers and fathers as primary earners. Women account for 88 per cent of all primary carers taking leave and men account for only 12 per cent. As a result, there is a huge gender division in the distribution of paid and unpaid work, which necessarily undermines equality between men and women. Caring patterns are established in the first year of a child's life, and they persist over that life, so the underutilisation of parental leave amongst fathers bakes in the gender division of labour in households—and in the workforce—for years to come. The skewed distribution of care work leads to reduced women's workforce participation, and time out of the workforce hinders women's career progression and contributes to the dominance of men in more senior roles and the concentration of women in low-paid, part-time and insecure work.

We know inadequate paid parental leave schemes have negative impacts on gender equality, but we also know that good paid parental leave schemes deliver social and economic benefits to women, to children, to parents and to the economy more broadly. We have buckets of research—very robust research, solid longitudinal studies—that tell us about the broad range of benefits of longer periods of paid parental leave, both in Australia and around the world. There are huge benefits for babies, very significant benefits for the life chances of children and enormous benefits for mothers and fathers. It assists breastfeeding, child development, the distribution of domestic work within families, and the mental and physical health of parents. It's also very clear that the benefits are there for the labour supply and the economy. Last year, the government's own Women's Economic Equality Taskforce recommended expanding PPL to 52 weeks and paying PPL at replacement wage, with employers making a contribution. This is not some random number; it is the international standard, the OECD average.

Australia has also fallen behind other countries in the rate of pay, the length of leave and how leave is allocated between parents. Australia's paid parental leave rate is currently one of the lowest in the OECD, even with the recent changes to bring PPL up to 26 weeks at minimum wage. For many parents, the minimum wage is well below their normal wage. This forces difficult decisions about how long parents can afford to take leave. As many witnesses at the work and care hearings pointed out, continuing to pay parental leave at minimum wage is not an effective incentive to induce more fathers to take leave.

The Greens are fighting for 52 weeks of paid parental leave at full wage replacement, including incentivising employers to top up the government's scheme. The ACTU have called for this pathway, yet the government is still ignoring the plea and the evidence. We've seen no commitment, not even to a pathway to 52 weeks of paid leave, to bring us into line with international best practice. We know this is possible, because lots of countries are already doing it and reaping the benefits—countries like Finland, Germany, Norway, Iceland and many others. They have more equitable and effective paid parental leave schemes, and we should be matching them. Norway has 49 weeks of parental leave: 15 weeks exclusively for one carer and another 15 weeks exclusively for the other, with the remaining 16 weeks to be shared. There are so many positive models out there.

We heard firsthand the benefits of adequate paid parental leave during our work and care inquiry, over and over again. Suvi, for example, lives in Sweden. She has a 13-year-old daughter and was able to take a total of 16 months paid leave. Her partner is taking seven months paid leave in his own right. That's based on Sweden's parental leave policy—a great model to look at. This helps explain the much greater sharing of domestic work that we see over the life course in those countries with good, lengthy periods of parental leave—paid close to ordinary earnings—and free child care. It's an arrangement which, together with paid parental leave, gives kids and their families such a good start and is associated with a much lower gender pay gap.

The experience in other countries puts beyond doubt that more equitable parental leave, coupled with free child care of high quality, improves women's workforce participation and helps shape the long-term sharing of care work, with really important positive outcomes for our kids. Where there is a more equitable take-up of parental leave, women have better paid-employment outcomes and children receive better support in the earliest stages of life. It's a win-win. This is not to mention the improved maternal health and the quality of personal relationships that exist for parents during a time when these things can be strained.

Research from the Parenthood found that, if we legislated 12 months of paid parental leave at full pay and with a significant portion of it shared, this would lead to a GDP increase of $116 billion—or 2.9 per cent—by 2025, largely due to the higher rates of female participation and the productivity that would result from them spending less time out of the labour market.

The Greens welcome the introduction of paying super on paid parental leave. The Greens, the community sector, academics—so many people across our community—have been calling for it ever since PPL was first introduced. But this is really the least the government could do. After decades of talk about what needs to be done, the action from this government remains insufficient. The government's main objection to giving Australian families 52 weeks of PPL is financial. 'We cannot afford it,' they say. Women and parents should not be asked to wait, when nuclear submarines and wealthy property investors are not asked to wait.

The Greens will continue to call for reforms that expand support for new parents and address the gender inequity of current childcare patterns in Australia. We are fighting for paid parental leave to be expanded to 52 weeks, giving parents that full year together, between them, to nurture and provide for the needs of their kids. It's time to act. We can afford it for the sake of our kids, and we must do it for those parents, women, workplaces and the economy. It's time we moved in a more powerful and lengthy way to make that longer term difference for our families and our economy.

Marielle Smith (SA, Australian Labor Party) Share this | Link to this | Hansard source

I also rise to speak on the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024. In doing so, I commend my good friend Amanda Rishworth, in the other place, and Senator Gallagher for bringing this legislation before us today, and I also acknowledge the women sitting in this chamber today who have been working on these issues, calling for this change for many, many years. Some have been doing so with a megaphone, others with very sharp elbows to their colleagues, but many women in this room have been advocating for this change and I acknowledge that and their work today.

This bill invests $1.1 billion over the forward estimates to pay for superannuation on government paid parental leave. It delivers an additional 12 per cent of paid parental leave as a contribution directly to the superannuation funds of parents of babies born or adopted from 1 July 2025. This matches the superannuation guarantee rate on that date, and the contribution will rise alongside any future increases to the superannuation guarantee, ensuring that parents utilising paid parental leave receive their super on an equal basis to those who are working.

The super will be paid at the end of each financial year and will include an additional interest component to make up for any forgone superannuation fund earnings as a result of the payment not being made more regularly. Importantly, this will be an automatic process, and the process for applying for paid parental leave will not change. We're trying to make sure here that parents don't face any barriers in claiming this entitlement.

When the Gillard Labor government introduced paid parental leave, we saw a jump in the number of employers providing additional employer funded leave. It had a ricochet effect. It was a modelling effect. According to the Workplace Gender Equality Agency, 63 per cent of employers offered employer funded leave in 2023-24, up from 48 per cent 10 years earlier. Our schemes, as government schemes, have an impact on changing culture and changing workplace practices right across the employment sector.

This legislation will have a similar impact, I am sure. Not only will it continue to normalise paid parental leave; it will also encourage more employers to pay superannuation on employer funded leave as a way to attract and retain staff. It is good for employers as well.

Paid parental leave has been an absolute game changer for women. I have spoken in this chamber before about how I felt as a young woman in 2011 when these changes were introduced and how it opened up a completely different future in my mind to what I'd seen as possible before. It changed how I thought I could balance a career and how I could balance having children, and what it would mean for my ability to stay connected to the workplace, to have a family and to continue to work. Whilst my journey didn't quite go like that—when I was preselected my son's age was still being measured in weeks, not months, and I had my second baby in this place—it did completely change the way I saw my future, and it changed the things I thought were possible.

When we expanded paid parental leave to 26 weeks, all those ideas and possibilities opened up for a new generation of women in Australia. They suddenly now see different opportunities and different potentials in how they can be the parents they want to be and be engaged in the workforce in the way they want to be. It's a reimagining of their future which is only possible through paid leave, and we know paid leave on a scale like this is only possible when governments back it in.

Paid parental leave is good for mums, it's good for dads, it's good for their precious babies and it's good for our economy. There should be no remaining doubt in this chamber or anywhere in our community about that. Now it's time to make sure that when parents take this leave it will not affect their retirement income, an important investment to help close the super gap and help make decisions around balancing work and care easier for women, easier for mums and easier for dads. We know from the data that taking time out of the workforce to raise children impacts women's retirement outcomes. We know that women are retiring on average with about 25 per cent less super than men.

This bill won't fix all of that, but it sure will make a difference. It will help. I couldn't be more proud of it. I couldn't be more proud of the legacy we, as Labor governments, have in bringing about superannuation and in introducing paid parental leave. The big step changes—they're not incremental changes—which have happened in this place have had a dramatic impact not only on women's workforce participation but also on what women can imagine for themselves: how they see their futures, how they see that opportunity and how they plan for those futures. Our families make that decision as well. This is good for mums, good for dads and good for babies. I couldn't be more proud of it. I commend the bill to the Senate.

Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

The Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 is a significant piece of legislation that brings together two great economic reforms of the Labor Party: universal superannuation and paid parental leave.

This legislation before us today, like much of our legislation, is an example of what happens when you have equal representation of women and men at the decision table. That's not to say that men can't make decisions that are beneficial to women and vice versa, but having equal representation in the caucus room, the cabinet and the ministry is the best way to make decisions that will benefit all Australians. Contrast this with the opposition, who do not believe in a quota system. Instead, they stick to their old male centred view of the world, arguing that their merit based system will naturally produce the best candidates regardless of gender. Even today, women make up only 28 per cent of their party room. That's roughly one-quarter of the party room, with women almost outnumbered by three to one. I do wonder: do they believe that women are not as capable as men, or is it simply further confirmation that the Liberal Party do not value the role of women in parliament or society?

The Labor Party is truly the party of the people. We are more diverse, more whole and more reflective of the society we were elected to represent. This is evident in our policies and legislation. We are the party that introduced no-fault divorce, the parenting payment, the Family Law Act, equal pay for equal work and the Sex Discrimination Act, and we created the Workplace Gender Equality Agency. Labor releases an annual women's budget statement showing the impact on the budget of women, and we've done this every year since the Hawke government in the 1980s. The Coalition has not adopted the same practice, a clear signal they don't prioritise the part that budgets and policies play in advancing the cause of women's equity—or, rather, it sends a signal that the impact of our policies on women is a source of pride for Labor yet for those opposite it is a source of shame.

Labor have always taken pride in our representation of women and women's interests. This legislation brings together two great Labor reforms: universal superannuation, introduced by the Keating government in 1992; and the Paid Parental Leave Act, introduced by the Gillard government in 2011. Until this bill is passed by the Senate, paid parental leave is the only remaining form of paid leave in this country that does not come with superannuation.

This reform is therefore critical in closing the gap and will go a long way in ensuring that parents are not penalised in their retirement due to their decision to have children. Often referred to as the 'motherhood penalty', the increased economic insecurity due to the time out of the workforce to care for children must be dealt with. Statistics show us that women with children face an average 55 per cent drop in earnings in their first five years of parenthood. The effect of this lower income compounds over time, increasing the gap between men's and women's superannuation balances at retirement. In a clear example of gender inequality, women on average retire with around 25 per cent less super than men. Paying superannuation on paid parental leave is therefore an important step in addressing gendered gaps in retirement savings.

This bill introduces superannuation on government funded paid parental leave for children born or adopted on or after 1 July 2025, with the government set to pay an additional 12 per cent of their paid parental leave as a contribution directly to their super fund. The super contribution will match the superannuation guarantee rate, as of 1 July, of the financial year the paid parental leave is taken, and will rise with any increases to the legislated superannuation guarantee. These changes are set to benefit around 180,000 families that currently access the government Paid Parental Leave scheme each year.

This legislation builds on our other reforms to the Paid Parental Leave scheme since taking office in 2022, including the biggest expansion in paid parental leave since the previous Labor government created it. In our first government we delivered an expansion, from 20 weeks to 26 weeks, to paid parental leave from 2026. This means that, once the Paid Parental Leave scheme reaches 26 weeks in 2026, and based on a superannuation guarantee rate of 12 per cent, the maximum amount a family would receive in superannuation contributions is around $3,000. We're also making the scheme more flexible so parents can share the responsibilities and the experience of those precious first months of a child's life. This is more than just great news for mothers; it's great news for dads as well. Research tells us that fathers are far more likely to use parental leave when it is well paid and flexible.

As well as adding super to the government payment, this bill will also ensure the parental leave framework in the Fair Work Act complements the Paid Parental Leave scheme. Unpaid parental leave in the Fair Work Act is an entitlement that supports parents to remain connected to paid employment while they care for their child.

In short, this bill, as we've heard, is good for families, good for women, good for business, good for the economy and, most importantly, good for children. It has the endorsement of businesses, unions, researchers, experts and economists, all of whom understand that the best way to increase productivity and participation in the workforce is to provide more choice, more support for families and more opportunities for women. Paid parental leave has already changed the lives of millions of Australians. These reforms strengthen the Paid Parental Leave scheme—yet another great and proud Labor legacy. I commend the bill to the Senate.

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

The Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 marks another step forward in closing the retirement gap—a 25 per cent gap—that exists between men's and women's superannuation balances at retirement. This bill will provide greater economic security for working women. That's because this government, more than any government before us, are putting women front and centre in everything we do.

It was Julia Gillard and Jenny Macklin who, in 2011, introduced the Paid Parental Leave Scheme—a cornerstone of support for Australian families. At the time, it was rightly celebrated. Over the past 13 years, it has been Labor governments who have continually improved on this scheme, driven by the dedication of champions like Jenny Macklin, by women's organisations and by unions. Again today, with this bill, we are building on this legacy by adding superannuation to government-funded paid parental leave. From 1 July 2025, superannuation will be paid on paid parental leave for births and adoptions, and this crucial step is designed to ensure that everyone can enjoy a dignified retirement, including women, who we know disproportionately undertake caregiving roles and retire with about 25 per cent less super than men. By adding superannuation to paid parental leave, we take another step forward to closing the gender retirement savings gap and tackling the issue of gender equality more broadly.

In my time as a senator, I have been one of many people on the side of the chamber who has championed women's economic security, and I am incredibly proud to be part of a government who put women front and centre and champion women's economic security. The work that women do in our society is essential, and it has been undervalued for far too long. The care that women provide at home has been undervalued for far too long, too. As a government, we value women's work. We value the caring roles that women perform in society. And we've shown that over and over again. We've shown it by supporting 15 per cent pay rises for our nation's educators and aged-care workers, and we're showing it again with this bill to make sure that women can continue to accrue their retirement savings while they're undertaking the incredibly important work of caring for young children at home.

Reforms like these are only possible with Labor governments. However, the opposition are trying to stand in the way of these reforms. Their proposed amendments, which would allow individuals to choose a lump sum payment instead of paid parental leave, absolutely undermine the purpose of this bill and the integrity of our superannuation system. Of course, we shouldn't be surprised that the coalition wants to take a positive change like this and use it to undermine our universal superannuation system. But, on our side of the chamber, our message is clear: superannuation is for your retirement, and you should be earning it when you take time out of the workforce to give care to young children.

This bill goes beyond strengthening women's retirement security. It recognises the value of unpaid care. It ensures that those who take time off work for caregiving are not penalised in their retirement savings. Around 180,000 families a year will benefit from these changes, receiving up to $3,000 in superannuation contributions. These are tangible benefits for families across Australia. Additionally, employer-funded paid parental leave is a powerful tool for attracting and retaining staff. This bill encourages employers to align with the strengthened government scheme. The union movement, the women's movement and employers have been calling for this change for years, and this bill shows that we are listening. The Women's Economic Equality Taskforce, which did such powerful work, has recommended this change. Again, the Albanese Labor government is listening to and fulfilling that recommendation.

To conclude, our Paid Parental Leave Scheme has been an absolute game changer for Australian families, and this bill will strengthen it even further, benefiting women, benefiting families and benefiting the economy. It ensures Australians receive the economic security that they deserve during their working lives and in retirement too.

Jana Stewart (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

I know how exciting it can be to grow your family. When I first entered this chamber in July 2022, I was 35 weeks pregnant. Already a mother to then-six-year-old Jude, I knew my decision to come into this place carried a lot of weight. But I entered this place knowing that the Albanese Labor government was fighting for working mothers just like me. Historically, taking time out of the workforce to raise children could have had a negative impact on your financial future. Today, the Albanese Labor government is changing that.

I am pleased to speak in support of the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024, a piece of legislation very important to me and many families across this country. Under paid parental leave, the government supports parents to take time off work after the birth or adoption of their child. In 2016, when I had my first son, I had the privilege of using the government's paid parental leave to stay home with my son—and if I had been able to receive superannuation on top of paid parental leave, that would have been the cherry on top too.

We are putting families at the centre of our government's investments by investing $1.1 billion to pay superannuation on government paid parental leave from July 2025. For babies born or adopted from 1 July next year, this bill delivers to all eligible parents an additional 12 per cent of their paid parental leave as a contribution directly to their superannuation fund. This super contribution will match the superannuation guarantee rate as of 1 July in the financial year the paid parental leave is taken. It will rise with any future increases to the legislated superannuation guarantee, and the contribution will be made annually by the ATO. It will also include an additional interest component to address any forgone superannuation earnings as a result of the payments not being made regularly.

What I really love about this bill is that 180,000 families will benefit from these changes, which is incredible. Once the Paid Parental Leave scheme reaches 26 weeks in 2026, the maximum amount a family will receive in superannuation contributions will be around $3,000—or about an extra $106 a week. With women generally more likely than men to take parental leave, paying super on paid parental leave is an important step towards achieving gender equality by reducing the gender gaps in retirement savings.

The Albanese Labor government is putting women in the driver's seat to determine their financial future. We are championing working parents and we're delivering cost-of-living relief for families. This bill is good for parents, good for families, good for women, good for business and good for the economy. Under Labor governments, women win and families win.

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak on the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024. This legislation is great. It's part of what a Labor government does in terms of reform, but it is also very good news for families. It's great news that we're putting emphasis on superannuation, and it's even better news for the women of Australia.

The Albanese Labor government is committed to Australian families and to Australia's workforce as our economy evolves. It will further demonstrate how important superannuation is. Industrial relations policy changes must take into account our changing world and demands on individuals and families. This is a landmark policy, and I'm proud to be part of a Labor government which is setting the standards for superannuation because superannuation is in our DNA. We believe in superannuation, unlike those opposite. It's wonderful to be part of a political party which is not afraid of these big reforms and implements policies which change the lives of Australians for the better—sick leave, Medicare, the PBS, superannuation, the NDIS, even the NBN, cheaper child care, paid parental leave, fee-free TAFE and now even more improvements to paid parental leave and superannuation which benefit our country and the future of our people.

Paid parental leave is so important for Australian families. It's critical for women, and it's critical for our economy. The Gillard government knew this, which is why we introduced it in 2011, and the Albanese Labor government understands the importance of improving it. Since coming to office the Albanese government has not stopped thinking of ideas and better policies to make Australia a better place to live and to raise a family—a fairer place for Australian women. We believe in giving women the opportunity to return to the workforce.

But we know how important superannuation is to Australian women, because the fastest-growing cohort of homeless people in this country are women. Why? Because not all generations have had the opportunity of having superannuation. And having a child and being out of the workforce for some time impacts on the career pathways of Australian women. So, ensuring that superannuation is paid on that parental leave is really important.

We know there are always going to be those who don't support superannuation, like the former government. We hear that from the contributions of those opposite when we're talking about housing—how they want young Australians to raid their superannuation now to help with buying a home, when we know that superannuation is there to ensure that people have a comfortable retirement. And women deserve nothing less, particularly those who are raising our children, the future of this country, than to have superannuation paid on their paid parental leave. Unions in this country have been fighting for fairness in this area for a very long time. So, it is with great pride that I say, as a member of this Labor government, that we have been delivering on that.

From 1 July this year we added two more weeks of payment, expanding the scheme from 20 weeks to 22 weeks. We also gave more flexibility for both parents to access more of that paid parental leave to ensure that it works and that families have the flexibility they need in order to provide the loving care for their child and that both parents can be involved in those early formative weeks and months of a child's life. Parents will now have access to $20,000 to support them after the birth of a new baby. Through Paid Parental Leave, the government supports parents to take time off work after the birth or adoption of their child. Through this bill we are taking action to support them in their retirement. That's what it's all about. Through this bill we're investing $1.1 billion over the forward estimates to pay superannuation on government paid parental leave from 1 July.

I could say so much more in relation to the importance of this piece of legislation. When you get to stand in this place and to be a member of the government, you want to be part of a government that makes Australian lives better, and there has not been a government that has done more to close the pay gap for Australian women than this government. There has not been a government that has done more in terms of fairness and access to better superannuation. I'm proud to be part of that. To some degree, this government has continued to build on what the Gillard government did, and that's because more than 50 per cent of our caucus are women, who do make a difference when developing policy. So I commend this legislation as well as the leadership of the Prime Minister in ensuring fairness and greater access to superannuation for women and helping Australians in their retirement years.

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

We're talking about providing superannuation contributions for people receiving parental leave pay. I think it's great these people who are bringing up future generations will have some extra money tucked away in their super when they retire. But one policy that really makes sense to me is paying super on carer payments. There are 2.8 million people who provide informal care across Australia. About 300,000 of these people receive carer payments. Half of them are over 55 and three-quarters of them are women. When introducing the bill we're debating here, the Treasurer said that paying super on government payments would mean a more dignified and secure retirement for Australian women. Given that so many women receiving carer payments are providing care on a full-time basis, why are we not also paying super on their carer payments?

Becoming a carer happens in an instant for so many, with the need to provide full-time care overtaking any other commitment. It's not planned. If your child suddenly requires daily care, you can't work and care for them at the same time. If your partner's health deteriorates, you now manage your day-to-day care needs rather than go to work. If an elderly parent needs your support so they can stay at home for longer, you can't help them to do that every day if you're at work.

People receiving carer payments mostly take time out of the workforce to provide care. Some of them won't go back to work, because their caring responsibilities overtake everything else. Others return to work, but they restart super contributions at a disadvantage, because their balance is less than it was before they left. They take a break for a year or two to care for a loved one, so there's a break in their income. It also means one or two years with no super contributions from their employer. And if, when they return to their work, they go part time, the super gap will continue to grow; it will never close.

Women already retire with less super than men. We know that's not fair. These gaps in super are making it worse for carers, most of whom are women. Paying super on carer payments would be an investment in future superannuation savings, meaning less reliance on the age pension. It's basically the Australian government putting money into carers' superannuation on their behalf.

What I'm suggesting is not going to send the country into a huge deficit either. While it would be nice to be able to top up super payments for all carers, I know that won't work, because about half of the people receiving carer payments have been on them for more than 10 years. Paying super for people in this situation will take the pressure off the pension, but because they've been out of the workforce for so long, it won't bring up the balance enough and they will still have to rely on the age pension in retirement. But I have what I think is a fiscally responsible alternative that will help younger carers. If we limited payments to carers under 40 and made superannuation payments for the first two years, that would cost about $60 million per year. As that $60 million grows in carers' super accounts, it will save money in the long run. These payments would not only make our budget healthier but also support carers to retire with dignity, so it provides equity.

Are you thinking this sounds good but wondering where the $60 million will come from? In response, I ask: where are the billions we spend every year on super concessions coming from? This is the kind of thing you can afford to do if you are prepared to shave one-tenth of one per cent from the existing superannuation tax concessions or just one per cent of the tax deductions we give to mostly high-income earners. Consider the difference this could make to early-career carers. Instead of retiring in poverty just because a loved one develops a terminal illness and you need to take leave from work to help look after them, a carer will know they have some extra support they can draw on at the end of their career.

Nobody should have to choose between dignity in retirement and the dignity of a child, a partner or a parent in the final months of their lives. This is one way we can make sure that that choice does not ever have to be made. Yes, it costs us something and, yes, I know the money must come from somewhere, but choices about superannuation are already being made every single day, and we've been making these choices for decades. The policy is something we could easily choose to accept and adopt. From where I'm sitting, the current super situation is not equitable, but this is a sustainable solution that provides for carers once they have supported their loved ones.

Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Just in the last 24 hours there have been reports in the news about the decline in the number of female CEOs across this nation. In fact, 91 per cent of CEOs are still men. That's a bit of a problem. Thank goodness that isn't a problem here in this parliament, and that is why we are here debating this very important piece of legislation coming from a Labor government. Happily, because of quotas that were instituted several decades ago, we are now at a point where we're on the cusp of fifty-fifty throughout our entire organisation. That makes a difference to the kind of legislation that comes before this parliament, and it makes a difference to women.

This bill implements a 2024-25 budget measure first announced in March 2024 with the launch of Australia's national strategy for gender equality, called Working for Women. It says two things about this Labor government. There are enough women here to get around the tables where decisions are being made and influence policy to catch up with what should have been in place for a very long time and has been opposed and ignored by those opposite forever. This bill is going to introduce superannuation on government-funded paid parental leave for children born or adopted on or after 1 July 2025. It will make annual government-funded superannuation contribution to the paid parental leave receipts superannuation account. This is really monumental legislation in its importance to women, certainly, but also in stitching part of a large tapestry of social progress in this country: achieving gender equality in Australia.

Clearly, having a child is a massive decision. The best three decisions I made in my life are my three children. Well, their dad had something to do with it, as well! It's great to be a mother. But it's nice to be able to work and to care. This government takes every opportunity to remove those hurdles that prevent parents from spending as much time with their child during their first year as we possibly can. We ensure that the financial constraints of lower superannuation balances that this legislation addresses are going to be absolutely, properly considered. Improving paid parental leave is a critical reform. It's critical for families, women and the economy. We know that. Businesses, unions, experts and economists all understand it's one of the very best ways to boost productivity and participation. Let me just repeat that again. The economics of this—to boost productivity and participation for the nation—is to move more choice and more support as an opportunity for women.

The Australian superannuation system is the envy of the world. I've often said in this place that, in Curran Road, Blacktown, where my parents had their first fibro house, superannuation wasn't a conversation we had. People didn't even know about it unless they had a special job. My mother used to talk in revered terms about being in the public service. Those sorts of people spoke about superannuation, not those on Curran Road, Blacktown. It wasn't anything we understood. But we understand now that it means Australians can have a dignified life well into their retirement. We know that a great superannuation system brings down barriers for everyone. But it's really important we continuously move this forward to avoid the gender inequality that has become apparent to us. We know that women often retire with about 25 per cent less in their superannuation balances than men. And we know that women are taking up more of the childcare workload in the family home, including in the first year of a child's life. We know that being without superannuation during this time is really impacting, in a compounding-interest way, what women are going to have at their point of retirement.

The success of this legislation coming forward is embedded in work done by critical unions as well. I want to give praise to the SDA, a union which did a huge amount of work. Six thousand workers in the retail sector were interviewed, and a research paper about work and care was advanced. Gerard Dwyer, the National Secretary of the SDA, said of the changes that we are proposing: 'This is another sign that this government means what it says when it talks about its commitment to gender equality. It's not just a matter of words but action.'

Women want to work and to care. We can do both, but we need systems in place that properly honour the commitment that we have to work and the rights we have to a dignified retirement. This piece of legislation is a change that I'm extremely pleased to bring to the chamber with my Labor colleagues. It certainly aligns with recommendation 16 of the final report of the Select Committee on Work and Care, where we took valuable evidence that confirmed once again that Australian women and their needs will always be at the heart of this very significantly female representative government.

Tim Ayres (NSW, Australian Labor Party, Assistant Minister for Trade) Share this | Link to this | Hansard source

Before I sum up the debate, I table an addendum to the explanatory memorandum related to this bill, the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024. The addendum responds to matters raised by the Scrutiny of Bills Committee.

I thank senators who contributed to what I think has been an important debate on this bill. Paying superannuation on paid parental leave is an important step towards reducing the gender gap in retirement savings and supporting a dignified retirement for more Australians. The data is clear, and I think broadly accepted, that women retire with around 25 per cent less superannuation than men. What we're doing with this bill is a positive investment in the future of working women, who deserve to retire with the same financial security as men.

For babies born or adopted from 1 July 2025, this bill delivers all eligible parents with an additional 12 per cent of their paid parental leave as a contribution directly to their superannuation fund. This start date recognises that, once this bill passes, Services Australia and the Australian Taxation Office need time to implement the significant and complex system changes that are required to deliver this successfully. Around 180,000 families will benefit from the changes each year. Once the scheme reaches 26 weeks, in 2026, and based upon a superannuation guarantee rate of 12 per cent, the maximum amount a family will receive in superannuation contributions will be around $3,150.

This bill has been warmly welcomed by parents, employers, unions and economists. It has been praised as an important step to narrow the gender gap and boost women's financial security. I listened carefully to Senator O'Neill's contribution. She is right. I remember very well when the SDA—the Shop, Distributive and Allied Employees Association—the Australian Services Union and the Australian Nursing and Midwifery Federation joined together, I think under the leadership of our former colleague the late senator Linda White, to advocate for this very important set of changes. Those female-dominated unions are working with employers in their sectors to advance what is a significant reform in gender equity in superannuation terms.

From day one the Albanese government has been working hard to improve paid parental leave for working families. This bill is the third significant improvement Labor has made to paid parental leave during this term. Thanks to the investment secured by this government, families are already receiving extra support at the time of a birth, with greater flexibility, a higher income test and more weeks of paid leave. Now we want to boost their retirement income as well, to ensure that they earn more and keep more of what they earn. In short, this bill is good for families, good for women, good for business and good for the Australian economy.

Question agreed to.

Bill read a second time.