Campaigners celebrate bill for super on paid parental leave

“Fighting the motherhood penalty”: campaigners celebrate bill for super on paid parental leave. Paying superannuation on paid parental leave could mean as much as $30,000 extra in retirement savings per family, per child.

Advocacy group The Parenthood says paying superannuation on paid parental leave could mean as much as $30,000 extra in retirement savings per family, per child. 

A bill introducing the measure, which the government committed to in March, will be introduced this morning by Social Services Minister, Amanda Rishworth.

The Parenthood CEO, Georgie Dent, said it was a crucial step in fighting the motherhood penalty and cost-of-parenting crisis. 

​“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,” Ms Dent said.

“Unfortunately, it is women who suffer the most financially, as their income drops dramatically after having children. On average Australian women retire with 25 per cent less super than their male counterparts.

“A big part of that is explained by women taking breaks from the paid workforce while they’re raising children and then not earning super. This bill is a significant win in redressing the inequity of missing out on super while on paid parental leave and for  gender equity.”

​The government commitment, which would come into place on 1 July 2025, applies to the government-funded paid parental leave scheme, accessed by around 180,000 families each year.

Ms Dent said it would be a game-changer for families across Australia. “This sends a powerful message that raising children is a valuable undertaking that deserves to be supported and compensated,” she 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.

​“It would give women more economic security in retirement, encourage men to play a more equal role in parenting by taking leave, and make having children a more financially viable option for those who wish to.

​"We hope all members of parliament will do the right thing and support this bill – not doing so would be a betrayal of families and a backwards step in the pursuit of gender equity."