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ABC News
ABC News
Business
political reporter Nour Haydar

Advocacy groups calls for Labor to keep parental leave superannuation pledge

Advocacy groups have called for superannuation to be added to paid parental leave payments. (Unsplash: Tanaphon Toochina)

Labor is facing pressure not to walk away from its promise to pay superannuation on government-funded parental leave.

At the 2019 election Labor committed to paying superannuation on 18 weeks of paid parental leave offered by the Commonwealth, a move which would help bridge the superannuation gender gap and improve retirement savings for women who take time away from work to have children. 

Advocates now say it it would be "incredibly disappointing" if Labor turned its back on the policy ahead of a looming federal election.

Shadow Treasurer Jim Chalmers said Labor had not reached a "conclusive view" on the issue, following reports the party's leadership had agreed to abandon the longstanding plan.

"We are still examining that policy," Mr Chalmers said. 

"We are consulting with stakeholders about it. I think the Australian people expect us to be responsible, and anything that we put forward to be affordable."

The chief executive of the Australian Institute of Superannuation Trustees, Eva Scheerlinck, urged Labor not to abandon the policy.

"Solving the gender super gap is a huge priority for us, and it should be for everyone," she said. 

Ms Scheerlinck said it was not acceptable that Australian women retired with less superannuation savings, and vowed to continue campaigning for the change. 

"We will not back off," she said. 

"It is something that the industry and women's groups have been asking for for a very long time." 

The Coalition had been considering the change after it was recommended by Treasury's retirement income review, but earlier this month Minister for Women's Economic Security Jane Hume confirmed it would not be adopted. 

According to the review, paying super to those who claim government parental leave pay would increase the cost of the $2.2 billion scheme by an extra $200 million annually.

The change would have a "small impact" on narrowing the retirement income gap between men and women, it said. 

Kara Keys, the chair of the Women in Super advocacy group, said whichever party formed government, it would have to deal with the structural economic inequality that contributes to women disproportionately retiring in poverty.

"Australian women have already missed out on $1.8 billion in super payments while taking paid leave from the workforce to have children," she said.

"When paid parental leave is the only form of leave where super is not paid, both Labor and the government need to think about the message it sends to Australian women if they don't commit to fixing it."

Mr Chalmers pointed to Labor's childcare plan, which includes lifting the maximum subsidy rate to 90 per cent, as evidence the party was committed to addressing structural issues that disproportionately hurt women. 

"We've already got some substantial policy out there when it comes to dealing with the barriers that women face in our economy," he said. 

"Our biggest on-budget commitment is on childcare."

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