ACTU criticises Coalition’s alternative super on PPL proposal

The Australian Council of Trade Unions (ACTU) has raised concerns over the financial security of women in the wake of the Coalition announced it would seek to amend the legislation guaranteeing superannuation while on Commonwealth Paid Parental Leave (PPL).

A joint statement from deputy Opposition Leader Sussan Ley, shadow Treasurer Angus Taylor, and shadow Social Services Minister Michael Sukkar, confirmed the Coalition is seeking to amend the legislation currently before Parliament to offer eligible parents a choice between normal super contributions, two extra weeks of Commonwealth PPL, or a one-off lump-sum payment that would amount to the total value of the superannuation entitlement.

The lump-sum is estimated to value approximately $2,900 when the new scheme increases to 24 weeks in 2025 and will go up to $3,140 in 2026 when it once again increases to 26 weeks.

The joint ministerial statement also indicated that the amendments were being made to “introduce more flexibility for [eligible parents to access] paid parental leave”.

“Adding super to Commonwealth Paid Parental Leave is a critical step in ensuring that Australian women can be free from poverty and live with dignity in retirement,” ACTU President, Michele O’Neil, said.

“It is unacceptable that women, on average, retire with 25 per cent less in superannuation than men. Denying the payment of super on Commonwealth Paid Parental Leave will only widen this gap and condemn more working women to poverty in retirement.

“Yet again, the Coalition are showing they don’t care about working women and their financial security. Their proposal would cost Australian women tens of thousands of dollars when they need it most.”

The Coalition’s statement also said the proposed amendments come as the cost-of-living crisis continues to burden families financially, with the flexibility to choose offering parents the opportunity to cover any immediate, necessary costs and “support them to spend time with their newborns”.

However, the ACTU confirmed that no superannuation on Commonwealth PPL sets Australians back by tens of thousands of dollars in retirement savings, as women with children especially experience an average 55 per cent fall in earnings in their first five years of parenthood and end up retiring with approximately 25 per cent less superannuation than men.

“Unions want better support for working women both now and for their retirement. The Coalition are opposing both, because they don’t believe that women deserve either. You can’t pretend to care about working women when your party opposes higher wages and higher superannuation,” O’Neil said.

“No one should be forced to choose between supporting their babies now and their own financial security in retirement. Unions know we can and should do both.”