Labor cops backlash after ditching election pledge to pay super on parental leave

Labor is softening its rhetoric after a decision to ditch a 2019 election promise was slammed as a ‘middle finger’ to Australian women.

Labor’s decision to ditch adding superannuation to paid parental leave has been slammed as “bitterly disappointing” and a “middle finger” to Australian women that will set them back financially at retirement.

The Parenthood’s Georgie Dent said the inclusion of superannuation on Commonwealth paid parental leave was “significant both in substantive and symbolic terms,” and condemned both Labor and the Coalition for their lack of commitment.

The Parenthood’s Georgie Dent says major political parties must consider paid parental leave policies to have credibility on supporting women’s economic security

Labor’s treasury spokesman Jim Chalmers says the party hasn’t finalised a decision to ditch an election policy to add superannuation on paid parental leave. Picture: NCA NewsWire/ David Crosling

“Any political party that claims to be prioritising women’s economic security, but overlooks paid parental leave … (or) access to early childhood education and care, loses credibility,” she said.

In the face of public backlash, Labor’s treasury spokesman Jim Chalmers denied a final decision had been made on Tuesday after The Daily Telegraph revealed the party’s leadership had resolved to walk away from its 2019 commitment to pay super on Commonwealth parental leave.

“We haven’t come to a concluded view on that issue,” he said.

But multiple sources familiar with the deliberations confirmed senior Labor figures met on Friday and determined the party would not take the policy to the 2022 election pending final consultation with internal stakeholders, including unions and the super sector.

Bondi mum Catherine Nantel with her son William, 5, and 3-month-old baby Matilda is one of many Australian women missing out on future retirement income because the government does not pay superannuation on paid parental leave. Picture: Jonathan Ng

Greens Senator Larissa Waters says Labor’s policy change is a ‘middle finger’ to Australian families. Picture: Sam Mooy/Getty Images

One source said it was possible the poor reception to the move could trigger “another backflip” and force Labor to keep the policy in its upcoming election platform.

It is believed the $200 million cost was a driving factor in the decision to dump the policy.

Greens Senator Larissa Waters said if Labor joined the Coalition in not committing to the policy, which was recommended by Treasury’s retirement income review, it would be giving a “middle finger” to Australian families, and particularly women.

“Dumping its longstanding commitment to pay superannuation on paid parental leave wouldn’t just be small-target politics, it would be bad politics that would betray and disadvantage women,” she said.