Labor plan to compensate women who lose super on maternity leave

LABOR will unveil a $400m plan to compensate women who lose super payments while on maternity leave.

LABOR has announced a $400 million plan to compensate women who lose superannuation payments while on maternity leave.

Opposition leader Bill Shorten will unveil the policy today, saying Labor wants to close the gender gap on superannuation.

It comes as the Morrison Government is under fire over the low numbers of women in the Liberal Party and allegations of bullying and intimidation in party ranks.

Women retire on average with $113,000 less in their super than men.

Opposition Leader Bill Shorten says Labor wants to close the gender gap on super. Picture Kym Smith

Labor is looking to phase out the $450 minimum monthly threshold for eligibility for the superannuation guarantee, helping people in part-time and casual work.

The plan will make it easier for employers to make extra payments into women’s superannuation funds.

“Our community needs our mums to be mums but you shouldn’t have to pay a motherhood penalty and retire poor,” Mr Shorten said today.

Mr Shorten said the modest payment, with the help of compound interest, would help women to have greater control over their lives and financial independence when they retire.

Fairfax Media reports the measure would start in July 2020 if Labor wins the next election.

Originally published as Labor plan to compensate women who lose super on maternity leave