media release
20 February 2023
HESTA welcomed the Commonwealth Government’s release today of an objective for the superannuation system, saying the consultation period was a time to come together and shape a stronger super system now and for generations to come.
HESTA CEO Debby Blakey said the $70 billion industry super fund looked forward to participating in the industry consultation on the objectives in what she described as a ‘critical year for the super system’.
“This is such an important year - it’s a real fork in the road for our super system as we have a real opportunity to ensure dignity in retirement is for everyone and not just the lucky few,” Ms Blakey said.
“Enshrining an objective of super is a vital foundation on which to build a stronger super system that’s fairer for women, those earning lower incomes and extends the benefits of our amazing system to more Australians.”
“We look forward to participating in the Government’s consultation to ensure our super system can continue to deliver even better retirement outcomes in the years ahead.”
In the lead-in to the May Federal Budget, HESTA has outlined five key recommendations to address persisting inequities in the super system.
These include prioritising paying super on the Commonwealth Parental Leave Pay scheme, extending the Low Income Super Tax Offset (LISTO) eligibility and adjusting other tax concessions for high income earners. HESTA also recommends scrapping super tax concessions flowing to accounts with balances of more than $5 million and introducing a carer’s credit to assist those taking unpaid parental leave rebuild their super.
HESTA’s 2023-2024 Pre-Budget submission looks at the combined impact of paying super on the Commonwealth Parental Leave Pay scheme, extending LISTO eligibility for those earning up to $45,000 and bringing the offset in line with the current Superannuation Guarantee (10.5%).
If these key equity measures were introduced, mothers working in vital health and community service sectors could see a super boost in retirement ranging from 3.7% to more than 11[1]% depending on how many children they have. About 250,000 HESTA members could see an increase to their super savings if the LISTO eligibility alone was extended.
Ends.
[1] https://www.hesta.com.au/content/dam/hesta/Documents/2023-24-pre-budget-submission.pdf