One year after superannuation was added to Commonwealth Parental Leave Pay—and as the super guarantee reached 12%—new modelling shows the reforms are already helping strengthen women’s retirement outcomes.
HESTA modelling based on 18 weeks of paid parental leave shows the addition of super could add around $6,500 to a woman’s retirement balance. For women who take parental leave twice, the benefit rises to nearly $13,000.
Those who received government-funded Parental Leave Pay during 2025–26 will see these super contributions in their accounts by the ATO after the end of the financial year.
Further modelling by the Super Fund highlights the long-term impact of the 12% super guarantee. Women beginning their careers today, with the full rate in place across their working lives, could retire with $712,000—a potential $411,000 increase compared with women modelled to have retired in 2025.
Around 80% of HESTA’s one million members are women, many working in lower-paid, highly feminised sectors such as aged care and early childhood education.
“One year in and we’re starting to see the positive impact these important reforms are having, and will continue to have, on women’s retirement outcomes while making our super system fairer,” HESTA CEO Debby Blakey said.
“Women have for too long retired with far less super than men, simply because the system didn’t account for the reality of their lives. These two reforms are starting to change that.”
Since the Commonwealth Paid Parental Leave scheme began in 2011, a structural gap has seen Australian mothers miss out on well over $3 billion in super savings. The lift in the super guarantee is expected to deliver compounding benefits over decades.
“This reform will see money flow into the super accounts of mothers who previously would have missed out simply for taking time to care for a new baby,” Ms Blakey said.
“The12% guarantee means women starting work today could retire with more than double the amount of super compared to female workers who retired last year.”
Low-income earners are also set to benefit from upcoming changes to the Low-Income Superannuation Tax Offset (LISTO). From 1 July 2027, the maximum LISTO payment will increase from $500 to $810 and will be permanently linked to personal income tax thresholds—helping ensure low-income earners don’t pay more tax on their super than on their take-home pay.
There was still much work to do to make Australia’s retirement system fairer, said Ms Blakey.
“Super on paid parental leave, LISTO changes and the 12% super guarantee should be seen as the foundation for further progress, not the end. There are still policy settings that disadvantage women and those on lower wages, and HESTA will keep advocating to ensure the system works for everyone.”
