One small step for super equality, one giant leap for families’ financial security

A smiling baby in its mother's arms

Gender equality in superannuation is currently in the spotlight, and the Albanese Government is stepping up by planning to include superannuation payments in the Paid Parental Leave (PPL) scheme from 1 July 2025.

This move is part of the larger "Working for Women" strategy aimed at advancing gender equality, marking an important effort to make financial outcomes more equitable for women.

Minister for Women Senator Katy Gallagher says the initiative is a no-brainer.

“The data is clear - that when women take time out of the workforce to raise children it impacts their retirement incomes with women retiring, on average, with about 25 per cent less super than men,” she said.

“Paying super on Government parental leave is an important investment to help close the super gap and make decisions about balancing care and work easier for women.”

A super idea? Practical benefits and long-term impact

Labor’s decision to introduce superannuation into the PPL scheme is part of its larger agenda to extend the duration of PPL. By July 2025, the scheme will extend to 24 weeks, and by July 2026, it will reach 26 weeks.

With the 2025 adjustments in mind, introducing a 12% superannuation contribution to the Paid Parental Leave, based on the current weekly rate of $882.75, substantially boosts financial support for families. Over the course of the 24-week leave period, this policy will add approximately $2542 to families' superannuation accounts.

To illustrate the long-term impact, that $2542 contribution has the potential to grow to more than $25,000 over 30 years, given average rates of return*.

*Past performance is not a reliable indicator of future performance.

Advocacy groups applaud the move

Organisations like The Parenthood have long advocated for such changes. 

Chief executive of The Parenthood, Georgie Dent praised the government's decision, emphasising how it reflects a broader recognition of raising children as a valuable contribution to society. 

“This is a game-changer for families across Australia,” Dent remarked. “It sends a powerful message recognising that raising children is a valuable undertaking that deserves to be supported and compensated.”

Why every super contribution matters

With the new policy adding super to Parental Leave, it's clear every contribution to your super counts more than you might think. It's about seeing your super grow over time, setting you up for a better future.

Did you know you can also top up your super yourself? Depending on your situation, these extra contributions might even get you some tax benefits. 

These are called concessional and non-concessional contributions. Dive into our super guides hub to learn about these and other super topics, helping you build a stronger financial foundation.