Rest urges Parliament to help close the gender super gap without delay

Rest, one of Australia’s largest profit-to-member superannuation funds, urges the Federal Parliament to help close the gender super gap by passing the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 without delay.

The Adding Superannuation for a More Secure Retirement Bill will see superannuation contributions included in the Commonwealth Paid Parental Leave scheme from 1 July 2025, a move Rest says will lead to fairer retirement outcomes for countless Australian women.

Rest Chief Executive Officer Vicki Doyle says it had long been an unfair anomaly that the Paid Parental Leave scheme was the only common form of leave without compulsory super contributions.

“This has led to many female Rest members retiring with less super than our male members. In fact, the gender super gap for our members approaching retirement is 27 per cent¹ – a figure that has widened in recent years,” says Ms Doyle.

“We represent 2 million members, of whom more than 1 million are women. This reform needs to pass as soon as possible so that, from next July, our members on parental leave can start benefitting from the compounding returns on their new entitlements.

“This reform will help close the gender super gap and make the super system fairer and more equitable for Rest members and Australians.

“This was the priority recommendation in Rest’s Pre-Budget Submission earlier this year due to its potential to make a real difference to the financial outcomes of many Rest members.

“We congratulate the Government for introducing this legislation and encourage the Parliament to pass it at the earliest opportunity.”

Ms Doyle says Rest would also continue to advocate for the other changes recommended in its Pre-Budget submission, such as extending super eligibility to all under-18 workers and updates to the Low Income Super Tax Offset (LISTO).

“All workers under the age of 18 should earn super regardless of the number of hours they work,” says Ms Doyle.

“We know that 77 per cent of Australians think it’s unfair that under-18s aren’t eligible for super unless they work 30 hours or more per week, and 82 per cent agree with changing this rule.² It would allow every young Australian to engage with and benefit from our super system from the very first dollar they earn.”