super on paid parental leave

After more than 13 years of tireless campaigning, we're thrilled with the Federal Government's announcement that super will be paid on the Commonwealth Paid Parental Leave scheme from 1 July 2025.


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why it matters

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 Commonwealth 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. We believe all parents should be confident their super can keep growing as their families grow. Parental leave is the only commonly taken form of paid leave that previously didn’t include super payments. Women take 86% of paid primary carers' leave, and this important equity measure will give Australian women's retirement savings a much-needed boost, helping to close the gender super gap.


how does this benefit HESTA members?


For a typical member taking 18 weeks of paid parental leave on the government scheme, modelling shows the inclusion of super will add around $6,500 per child at retirement.

As well as the direct value to their super, fair and equitable workplace benefits help improve women’s workforce participation, ensuring value in the companies we invest in by fostering a diverse and sustainable culture that supports long-term value creation. This helps maximise long-term financial outcomes for HESTA members from investments in these companies.



what HESTA members told us


Research we conducted in 2022 showed a significant proportion of surveyed members were stressed about the financial penalty they would pay later in life from taking time out of the workforce to raise children, and wanted government action to address this super inequity.*



9 out of 10

strongly agreed that changes are needed in Australia’s super system to boost women’s financial security in retirement



3 out of 5

 were concerned about the long-term impact parental leave would have on their financial security as they age



The announcement to pay super on the Commonwealth Paid Parental Leave scheme is a significant step forward to address a long-standing gender blind spot in our retirement system.


* Superannuation & Parental leave HESTA member research 2022