The Association of Superannuation Funds of Australia (ASFA) has called for the introduction of a $5,000 Super Baby Bonus payable into people’s superannuation following the birth or adoption of a child.
The association’s pre-Budget recommendation followed a recent consumer survey undertaken by ASFA which found more than 80% of respondents believed the Government should take measures to boost the super balances of women who took time out of the workforce to have children.
ASFA chief executive, Martin Fahy, said: “While the superannuation system is well-designed and working for the majority of Australians, there is a significant gap of 23.4% in superannuation balances between men and women as they approach retirement”.
The ASFA said the proposed $5,000 payment could benefit up to 300,000 women per year be equivalent to the amount that a person would receive from Super Guarantee (SG) contributions on a $60,000 wage for one year.
“Broken work patterns, COVID-19, and the early release of superannuation, which was used to help get Australians through the pandemic, have eroded the retirement savings of low-income earners and women in particular,” said Fahy.
“It is now essential that repair be undertaken to low-income earners and women’s retirement budgets through targeted assistance.”
The association said the payment would supplement proposals to pay SG on paid parental leave and the “urgent legislation” that was currently in Parliament to abolishes the $450 per month threshold.
The ASFA pre-Budget submission also explored other alternatives to boost the superannuation balances of low-income earners and gig economy workers including targeted payments depending on people’s income, balances and age.
