Despite speculation of reform that would require employers to pay superannuation entitlements on all paid parental leave, the hopes of working mums were crushed with the announcement of the federal budget on 11 May 2021. Proposed changes included calling for employers to provide super or pension credits to those foregoing earning income to undertake caring responsibilities. Under this plan, the federal government would be responsible for converting carer’s credits into superannuation payments. The scheme was widely praised as a positive step towards closing the gender gap in superannuation balances by ensuring that carers (who are predominantly women) are not penalised for the essential caring services that they provide.
This budget’s failure to include these changes could future mums up to $13,500 over a life time.
Despite its flaws, this budget’s renewed focus on women and low income earners has shocked and delighted many. The Australian Government announced it will expand super guarantee coverage for low income workers by removing the $450 per month threshold for eligibility. With 3 billion dollars allocated to women, 2021’s budget is unrecognisable from last year’s focus on construction and roads.
If you would like to learn more about the 2021-2022 budget, you feel your employer is not honouring your rights, or you would like to discuss a legal matter, please do not hesitate to contact us on 8917 8700.