The Turnbull government has signalled it may allow mothers returning to work to boost their retirement savings without suffering a tax penalty.
In an exclusive interview with News Corp, Treasurer Scott Morrison indicated the proposal would be targeted at minimising the gender gap in superannuation and reducing pressure on the age pension.
“We don’t want women penalised for the choices they have made earlier in life,” Mr Morrison told News Corp on Monday.
Most workers who make extra contributions to their super fund are currently taxed at 15 per cent. Under the Treasurer’s proposal, the $30,000 per year cap on such contributions could be raised for women who return to work after having a child.
Treasurer Morrison suggested the tax relief could also apply to full-time carers and other Australians who exit the workforce for long periods of time.
“There has to be some flexibility in the system for people who may incur disruptions on their working life,” he told News Corp.
“For example people who are forced into carer roles … many people in their retirement phase become carers.”
The Treasurer’s comments may be a hint at the contents of the Turnbull government’s tax reform white paper.
—with Jackson Stiles and AAP