The Greens will use their Senate balance of power to hold up proposed changes to the tax treatment of large superannuation accounts until the government puts superannuation on paid parental leave. The Greens support for that reform will be contingent on passage of legislation to put super on Paid Parental Leave (PPL).
The Government announced in their 2023-24 Budget that from 2025‑26 the tax rate on earnings of superannuation balances above $3 million will be lifted from 15% to 30%. This is expected to affect around 80,000 people in 2025-26 and in the first full year of collection (2027-28) is expected to increase receipts by $2.3 billion.
Paying superannuation on PPL would cost the Government less than ten percent of that, an estimated $200m per annum according to the Association of Superannuation Funds of Australia (AFSA).1
As stated by Greens leader in the Senate and spokesperson on Women, Larissa Waters
"The Greens will use our balance of power in the Senate to ensure the government makes superannuation on Paid Parental Leave a priority reform, as part of its changes to super.
"This is such a timid proposed change to the tax concessions the obscenely wealthy receive. If Labor is not going to improve it, the least they can do is put it to good use.
"Paying superannuation on Paid Parental Leave would cost $200m each year, less than ten percent of the $2.3 billion expected to be raised from the government's proposed changes to superannuation tax concessions.
"We will use our balance of power in the Senate to get outcomes for women and young families who are struggling with the cost of living crisis.
"We know Australian women are retiring with significantly less superannuation savings than men, with the gender retirement gap currently sitting at 23 per cent2. Women deserve fairer Paid Parental Leave, and it's only fair if it includes super.
"It's been almost a year since business groups and unions came together at Labor's Jobs and Skills Summit to call for 26 weeks paid parental leave and super to be paid on it; and three months since they ignored the Women's Economic Equality Taskforce calls for super on paid parental leave - a key recommendation of its interim report.
"Labor is dragging out the increase to 26 weeks, making women wait while it's introduced gradually over the next two years. And they rejected a Greens amendment in May to pay super on PPL.
"They are drip-feeding the 'idea' of paying super on PPL until a date that suits them politically.
"While we wait for the Government to come up with a campaign plan, the gender superannuation gap continues to grow, and a comfortable retirement feels more out of reach for more women and young people.
"Labor agreed to a binding resolution at national conference to 'work to implement payment of superannuation on government Paid Parental Leave as a priority reform'. Now's their chance."
1.https://www.superannuation.asn.au/media/media-releases/2023/media-release-7-march-2023
2.60-64 age bracket: Towards gender equity in retirement (kpmg.com)
