Super objective must strive to resolve gap

HESTA’s submission to the Government’s consultation on introducing legislation on the objective of super has called for including a commitment to closing the gender superannuation gap.

The industry super fund said the legislation’s explanatory materials regarding “equity” should clearly define the concept of a “’dignified retirement’, being one which promotes ‘financial security and wellbeing in retirement’”.

This would be achieved through a “standard of living that:

• is supported by retirement income sufficiently above the Age Pension (or other government support);
• supports a person’s ability to economically and socially participate in the community; and
• is consistent with community expectations.”

HESTA chief executive Debby Blakey said simplifying and explaining the objective that references the eradication of the gender super gap and inequity for women, Aboriginal and Torres Strait Islander people and low income earners would enable future super reform to tackle such structural inequities that prevent people from receiving full benefits of super.

“HESTA strongly supports the need to enshrine in law an objective of super that focuses on achieving dignity and equity in retirement, and this goes hand in hand with closing the gender super gap,” she said.

“Our super system is world class, but its design continues to disadvantage certain groups, including women, many of whom continue to experience an intolerable level of economic insecurity in retirement.

“Crystallising the legislative objective of super to include eliminating the gender super gap and avoiding further inequity will help ensure future reforms address super’s gender blind spot and make our retirement system fairer for all Australians.”

HESTA’s submission also called for a Gender Superannuation Impact Assessment to analyse how future reform will help eliminate the gender super gap and measure Australia’s progress on closing the gap.

“As a priority, we want to see super paid to workers taking paid leave to care for children because this will help make our retirement system fairer for all Australians and take an important step forward in addressing the gender super gap,” Blakey said.

“Unpaid caring work make an enormous difference to our economy and to the health and wellbeing of families. It’s time our super system recognised this important contribution.”