A super move on parental subsidy

Australian women are set to be thousands of dollars better off in retirement, with the government promising superannuation on paid parental leave.

After long citing budget restraints, the government will move to help close the gender superannuation gap, announcing parents with babies born or adopted from July 1, 2025, who receive the minimum-wage support scheme will receive an additional 12 per cent as payment into their super funds.

According to Industry Super Funds, women retire with 30 per cent – or $67,000 on average – less than men.

Paying superannuation on PPL was a key recommendation of the Women’s Economic Equality Taskforce (WEET) and follows the government’s expansion of the scheme, which can be shared by both parents, to a full six months by 2026.

Women’s Minister Katy Gallagher will release Australia’s first national strategy to achieve gender equality on Thursday and will confirm the move in a speech to the National Press Club.

The ABS found in the 2019-20 financial year the median superannuation balance of women over 65 was $168,000, compared to $208,200 for men.

Details of the cost won’t be released until budget night, but Senator Gallagher on Thursday will say it is an “important investment to help close the super gap”.

Treasurer Jim Chalmers said the change meant, over the long term, a “more dignified and secure retirement for more Australian women”.

On average, about 180,000 families receive governmentpaid parental leave a year.

Social Services Minister Amanda Rishworth said the changes would bolster women’s workforce participation.

“It helps normalise taking time off work for caring responsibilities and reinforces paid parental leave is not a welfare payment – it is a workplace entitlement just like annual and sick leave,” she said.

“These reforms cement paid parental leave as a Labor legacy.”