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Super to be paid on parental leave to close gender gap

New mums and dads could get superannuation paid on government-funded parental leave from July.

New mums and dads could get superannuation paid on government-funded parental leave from July. Photo: Getty

New mums and dads are set to have their superannuation topped up by the federal government when they’re taking time off to care for their newborn.

Laws paying superannuation on top of government-funded paid parental leave have been introduced to federal parliament in an attempt to lower the gender gap for retirement savings.

From July 2025, 12 per cent superannuation will be paid to parents who are using paid parental leave, which is expected to benefit 180,000 families.

It’s expected new parents will receive $3000 in super over the length of their leave, which will expand to six months from 2026.

Social Services Minister Amanda Rishworth said the laws would boost gender equality and bolster the economic security of women.

“Women make up the majority of primary caregivers in this country, leading to what has been referred to as the motherhood penalty, where they face greater economic insecurity because of time out of the workforce to care for children,” she told parliament on Thursday.

“Paying super on paid parental leave is a positive investment in the future of working women and in our broader economy.”

While some employers with paid parental leave schemes already pay superannuation on top, the laws would ensure parents using government-funded leave would be able to have the same benefit.

Chief executive of advocacy group The Parenthood, Georgie Dent, said the changes could see people retire with $30,000 more in retirement savings per family, per child.

“The reality is that today in Australia there are so many financial hurdles to having a family – from the cost of early childhood education and care, to lost earnings while out of the workforce,” Dent said.

“The inclusion of superannuation payments would reinforce that paid parental leave is not a welfare payment, but a workplace entitlement just like annual leave or sick leave.”

-AAP

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