SMC pushes for carers to qualify for SG

Australia's unpaid carers could retire with up to $45,000 more in superannuation if the federal government extends the Super Guarantee (SG) to the Carer Payment, according to new research from the Super Members Council (SMC).

The report found more than one million Australians continue to miss out on superannuation because of gaps in the current system, including unpaid carers, gig workers, domestic workers and part time employees under the age of 18.

SMC estimates paying the 12% SG on the Carer Payment would deliver an average of $3072 a year in super contributions to around 334,000 unpaid carers while they are providing intensive care to a loved one. For a typical 45-year-old carer, the additional contributions and compound investment returns could translate to an extra $45,000 in retirement savings.

SMC said the issue disproportionately affects women, who account for more than 70% of recipients of the highly means-tested Carer Payment and are three times more likely than men to take on informal caregiving responsibilities.

"Australia's super system is meant to be universal, but today more than a million Australians are still missing out on the same guarantee as 17 million of their fellow Australians - simply because of their age, the work they do or who they are. That's just not fair," SMC chief executive Misha Schubert said.

Schubert said extending super to carers would recognise the economic value of unpaid care while helping address retirement inequality.

"Paying super on the Carer Payment would be a big step forward for fairness that recognises the economic value of care and would make a real difference - especially for women, who carry the bulk of caring responsibilities. It's a foundation stone to begin to tackle the carer poverty penalty," Schubert said.

The report also highlighted superannuation gaps affecting approximately 184,000 gig economy workers, 515,000 part-time workers under 18, and 37,000 domestic workers, most of whom are women.

Carers Australia chief executive Joanna Cave said reforms were becoming increasingly important as unpaid carers shoulder greater responsibilities.

"With the recent cuts to the NDIS, many carers will be providing more unpaid care. Any initiatives that can help carers in their retirement are welcome," Cave said.