Why no Australian parent should have to choose between supporting their children now or securing their financial future

As a leader committed to the long-term financial wellbeing of our members, I am deeply concerned about the Coalition's amendments to allow superannuation to be cashed out to fund day-to-day living expenses.

At HESTA , we understand the cost-of-living pressures on families. Nearly 80% of our members are women, many of whom face lower wages, financial and career challenges, and time out of the workforce for caregiving – all of which impact their superannuation outcomes.

Australian women retire with around 25% less in super than men. After more than 13 years of tireless campaigning, the inclusion of superannuation payments during paid parental leave was a pivotal reform. This ensures that parents, particularly women, do not miss out on crucial retirement savings.

We believe all parents should be confident that their super can keep growing as their family grows. Currently, Commonwealth Paid Parental Leave is the only commonly taken form of paid leave that doesn't yet include super payments. Given that women take 86% of paid primary carers' leave, this important equity measure will significantly boost Australian women's retirement savings, helping to close the gender super gap.

While we appreciate the Coalition’s support for superannuation on Commonwealth Paid Parental Leave, making these payments optional undermines the policy's fundamental goal of closing the gender super gap. It implies that women should compromise their future financial security to meet immediate family expenses.

Paying super on the Commonwealth Paid Parental Leave Scheme will help our members add much-needed dollars to their retirement accounts, narrowing the gender super gap and making Australia’s super system fairer.

No Australian parent should have to choose between supporting their children now or securing their financial future, and the Coalition’s amendments could deprive women of thousands of dollars when they retire.

HESTA modelling shows that for a typical HESTA member, superannuation on 18 weeks of paid parental leave could add around $6,500 per child to their super balance at retirement.

This effectively means that for every dollar a woman could receive upfront from super on paid parental leave, it could cost them more than two dollars in lost retirement savings later in life. A bad deal for women, whichever way you look at it.