A $5,000 Baby Bonus Could be on the Way for Aussie Mums
Mums & Bubs
The words '$5,000' and 'baby bonus' should perk up the ears of all Aussie mums and why wouldn't it? Having a baby is certainly a labour of love, so it'd be a nice welcome bonus if someone offered you a quick $5,000 to add to your family's financial future.
The $5,000 Baby Bonus is an initiative that's recently been brought to the attention of the federal government by The Association of Superannuation Funds of Australia and is a lump-sum payment program for all Australian mums who give birth or adopt a child. And no, they're not trying to reinstate the abolished Baby Bonus from 2014.
A New $5,000 'Baby Bonus' for Aussie Families
Taking time away from work to have a baby and raise a family is no easy task. Aside from putting your body through an immense amount of physical and emotional changes, having a baby in Australia is quite an expensive undertaking. And when you factor in taking time off of work and cutting back on your income, it's no wonder organisations such as The Association of Superannuation Funds of Australia (ASFA) are looking for a way to soften the blow for Aussie mums.
The ASFA recently conducted a survey where more than 80 per cent of participants agreed that the government should top up the super balances of women who take time out of the workforce to have or adopt children. As it stands, there is a 23.4 per cent gap in superannuation balances between Australian men and women looking to retire in the future. The proposed $5,000 'Baby Bonus' is looking to close that gap.
Closing the Gap on Super Balances in Australia
The proposed $5,000 'Baby Bonus' paid into the person's superannuation account would be equivalent to the amount that a person would receive from Super Guarantee (SG) contributions on a $60,000 wage for one year, and could benefit up to 300,000 women per year.
According to ASFA CEO, Dr Martin Fahy, "While the superannuation system is well-designed and working for the majority of Australians, there is a significant gap of 23.4 per cent in superannuation balances between men and women as they approach retirement."
"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," adds Fahy.
The average superannuation balance of a woman aged 60-64 is $137,050, compared to $178,800 for men.
But what about men who also take time off work to raise children, we hear you ask? The lump-say payment would also apply to men who take leave to become the sole caregiver.
Do you think all Australian families who take time off work to raise their family should receive a $5,000 'Baby Bonus'? Let us know in the comments.
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