Closing the super gender balance gap

Paying super on government paid parental leave is a welcome first step towards closing the super gender balance gap. 

Super Consumers Australia welcomes the Federal Government’s announcement to pay super on top of Commonwealth Paid Parental Leave from 1 July 2025. 

“Care work is work. To see this recognised is a historic win for gender equality,” says Super Consumers Policy Manager Rebekah Sarkoezy. “Super on paid parental leave will make a difference for many Australian families. The 2020 Retirement Income Review found that the most significant driver of the gender super balance gap was life-long income disparity between men and women. One of the many factors contributing to this disparity is that a higher proportion of women take time out of the workforce to care for children and other family members. 

“Paying super on paid parental leave is an important step towards addressing this disparity. However, more needs to be done to close the super gender balance gap. Women who rent in retirement currently experience some of the highest rates of financial stress. Super can play a part, but this group needs targeted solutions.” 

“Being in affordable housing is one of the biggest factors impacting people’s retirement outcomes. Too many older women lack access to affordable housing, so we need the Federal Government to invest in a much needed boost to Commonwealth Rent Assistance.” 

“Let’s make sure that women who can’t enter the housing market, and those who haven’t been able to accumulate a sizeable super balance, aren’t punished at retirement,” says Sarkoezy. “It’ll make a massive difference to the financial wellbeing of older Australian women on low and middle incomes”.