Reform to Superannuation on Paid Parental Leave Scheme is Great News for Mums

An historic change to the Commonwealth's paid parental leave scheme has been announced today, which aims to close the gender superannuation gap. 

The announcement marks a significant step toward addressing gender equality in our retirement system—and it stands to benefit a whopping 180,000 families. 

Here's the deal. 

Landmark Change to Superannuation on Paid Parental Leave 

Following legislation announced today and pending approval from parliament, parents welcoming babies after July 1, 2025, will receive a long-awaited and much-needed boost: 12% superannuation alongside their government-funded parental leave for 20 weeks.

Superannuation on Paid Parental Leave
Parents will now receive 12% superannuation on top of their Parental Leave payments. 

Minister for Women, Katy Gallagher, is set to unveil this important policy proposal today at the National Press Club in Canberra, just in time for tomorrow's International Women's Day celebration.

This proposal is part of the Albanese government's initiative to revamp paid parental leave, addressing a crucial issue where women currently miss out on superannuation during time off for having and raising children. This reform aims to bridge the gap, ensuring that women aren't left disadvantaged in retirement—a gap that currently sings to the tune of women retiring, on average, with 25% less than men. 

CEO of Super Fund HESTA, Debby Blakey, has said 

More than 80% of our one million-plus members are women, many working in typically lower-paid industries such as aged care or early childhood education. Paying super on paid parental leave will help our members add much-needed dollars to their retirement accounts, narrowing the gender super gap and making Australia’s super system fairer.

As someone who has been the primary caregiver for our two children, I can't help but reflect on how transformative this change would have been for us. The financial pressures of parenting are real, and the gender superannuation gap only exacerbates these challenges.

It's heartening to see steps being taken to address this enduring issue. It goes without saying that we're absolutely cheering about the changes this will make to the gender-based blindspot that has been longstanding in the Australian retirement system. 

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