Historic reform: Super on Paid Parental Leave

The Parenthood celebrates the Albanese government’s introduction of superannuation payments on the Government's Paid Parental Leave scheme starting from 1 July 2025. This is historic.

The Parenthood celebrates the Albanese government’s introduction of superannuation payments on the Government's Paid Parental Leave scheme starting from 1 July 2025. This reform, announced in conjunction with the release of Working for Women – Australia's first national strategy towards achieving gender equality, marks significant progress towards economic inclusion and gender equity, as well as the valuation of care.

"This is a game-changer for families across Australia. It sends a powerful message recognising that raising children is a valuable undertaking that deserves to be supported and compensated,” says Georgie Dent, CEO of The Parenthood.

“By integrating superannuation into Paid Parental Leave, we're laying foundations for a more secure financial future for the 180,000 families - and particularly mums - who access the scheme each year.  

“The inclusion of superannuation payments reinforces that Paid Parental Leave is not a welfare payment, but a workplace entitlement just like annual leave or sick leave.”

A 12% superannuation payment on the Commonwealth’s Paid Parental Leave scheme, which is currently paid at the rate of $852 per week, for 24 weeks, amounts to around $2500 being paid into super for families while on paid parental leave. In 30 years, with an average return on super, that investment will be close to $30,000.  

“This is a significant victory for gender equity and for organisations and individuals who have campaigned and advocated for this change for the last decade,” Dent said. "Women in Australia remain financially penalised for having children, as the recent WGEA data captures, with significant ramifications for their long-term financial security and retirement savings.”

On average, women in Australia retire with 25% less superannuation than their male counterparts. Changing this requires the unpaid caring responsibilities to be more equally shared between parents. 

“This reform is another piece in the puzzle to reshape how parents, employees and employers view the role of raising children. It acknowledges that raising our future generations is a shared responsibility that deserves recognition and support."

Dent further emphasises, "Taking time to raise young children needs to be seen as a workplace norm and not a special benefit provided to women, who are the majority users of these schemes.

The Parenthood commends the government for its commitment to gender equality and for taking concrete steps to support families.

“The Parenthood welcomes the Commonwealth Government’s ongoing commitment to pursue evidence-based policy reforms to address structural drivers of gender equity, and to value the significance of the early years for children, parents and communities.”