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Superannuation cash boost means thousands of Aussies could retire $14,500 richer

Superannuation will be paid on parental leave payments from July 1, 2025.

Aussie families are set to be thousands of dollars better off in retirement, after the government announced plans for superannuation to be paid on parental leave payments.

The federal government has confirmed it will introduce super on the government payments if it wins the next election, with parents set to receive 12 per cent superannuation on payments from July 1, 2025.

Now, the plan could be one step closer to reality, with the Coalition supporting the policy in principle but saying it would need to examine the details before making a final call.

Aussie mum and money, superannuation on paid parental leave concept.
The major change to superannuation would kick in from July 1, 2025. (Source: AAP/Getty)

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The move follows the government’s planned expansion of the paid parental leave scheme, with parents set to receive an increased 26 weeks of paid leave by July 2026 if passed by parliament.


Currently, families can receive 20 weeks of paid parental leave, which is paid at the national minimum wage of $882.75 per week. This leave can be shared by both parents.

More than 180,000 families are paid parental leave each year, with women receiving 99.5 per cent of the payments.


“The data is clear, 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," Minister for Women Katy Gallager said.

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

Women earn 12 per cent less than men, on average, while women in their 60s nearing retirement currently have $65,300 less superannuation than men, on average - a 27 per cent gap - according to analysis by the Super Members Council.

How much better off will Aussies be?

Under the proposal, super would be paid at 12 per cent of the paid parental leave rate. From July 2025, parents would have access to an increased 24 weeks of paid leave.

Based on the current rate of pay, a 12 per cent superannuation payment paid for 24 weeks would amount to around $2,540 being paid in super for families while on paid parental leave.

The Super Members Council estimates a mother of two’s retirement savings would be increased by around $14,500 under the changes. It’s worth noting that this would depend on the parent’s age and superannuation returns.

The group’s CEO, Misha Schubert, said the “historic decision” would make a “powerful difference to the lives and retirement incomes of generations of Australian women in the decades ahead”.

It estimates the move will reduce the gender gap at retirement by around a quarter.