The Budget is another missed opportunity to address the gender super gap and take action to put an end to the $5 billion a year unpaid super scandal.

Despite the gender super gap getting worse for many working mothers, the government has failed to heed the findings of the Retirement Income Review and has refused to pay super on Commonwealth Parental Leave Pay.

It is disappointing this was not among government changes to the scheme announced in the budget.

This modest investment of paying super on parental leave would add up to $14,000 to the retirement balance of a mother of two. As 99.5% of applicants are women, paying super on Commonwealth parental leave would be a concrete step towards bridging the gender super gap.

Mums left behind AGAIN

Mums are continuing to pay a hefty future financial price for having a baby, with the gender super gap increasing by 5% since 2013 for women in their early 30s. By not paying super on parental leave the government is failing a cohort of women who could be at risk of retiring into poverty.

Another missed opportunity to help bridge the gender super gap was not increasing the Low-Income Superannuation Tax Offset (LISTO) so it better aligns with the income tax brackets, a tax cut that would benefit more than 700,000 women on lower incomes.

Almost three million Australians a year have been underpaid their super. The $5 billion a year rip-off demands urgent attention, as it can cost workers up to $60,000 from their retirement savings.

For years the government has known mandating the payment of super with wages would help address the unpaid super scourge. As super is paid quarterly it makes it difficult for workers to keep track of their money and allows payments to fall through the crack.

But Industry Super Australia (ISA) welcomes Budget papers confirming the government will lift the Super Guarantee rate to 12% by 2025 as legislated – this July’s increase will take the rate to 10.5% – it will give the average 30-year-old worker an extra $80,000 than if the rate was frozen at 10%.

Importantly there are also no changes to the preservation rules of super.

ISA acknowledges the extension of the reduction in super drawdown rates – a temporary measure in response to the COVID-19 pandemic that will now be in place until 2023.