Super Consumers Australia welcomes super on paid parental leave, boost to rent assistance
Super Consumers Australia says key Budget announcements will make super and retirement fairer for the Australians who need it most
The Federal Government announced today that it will boost Rent Assistance by 10% and confirmed that superannuation will be paid on Commonwealth-paid parental leave by 2025.
“A fair and equitable retirement system means support for the Australians who need it most. This Budget heads in that direction,” says Xavier O’Halloran, Director of Super Consumers Australia.
“The increase to rent assistance is a step to addressing housing stress, but according to housing affordability experts, much more is needed to address the issues facing renters. We are particularly concerned about how retired renters are faring, as they face some of the highest rates of financial stress. People out of the workforce have little opportunity to boost their finances and combat cost of living pressures,” says O’Halloran.
The Government confirmed its commitment of $1.1 billion over four years for superannuation on Government-funded Paid Parental Leave.
“This is a positive step in addressing the gender inequality in super balances. The gender pay gap, alongside the disproportionate caring responsibilities women carry, means they often retire earlier and with less. This measure will go some way to addressing this inequality.”
Other welcome initiatives
$67.5 million to combat scams, including new mandatory industry codes: “We welcome the continued support for the regulators to combat scams and online fraud, especially via new mandatory industry scams codes. But the Government needs to move quickly to introduce a super anti-scams code. Protecting people’s hard-earned retirement savings from scammers should be among the Government’s highest priorities.”
$10 million over four years to support ASIC to combat greenwashing: “The additional funding for ASIC’s crackdown on greenwashing is critical. These efforts, plus new funding for financial product sustainability labels, will go a long way in giving Australians the confidence to invest in this sector and will target misleading behaviour from super funds.”
More than $60 million over four years to prepare workplaces and the super system for the introduction of payday super: “These commitments, alongside other measures to reduce unpaid super, will help bring the super system into the 21st century and ensure all employees are paid super at the same time as wages.