Superannuation for New Parents Hits Roadblock as Opposition Suggests Alternative

The Albanese government’s bid to introduce superannuation entitlements for new parents on paid parental leave from July 2025 has stirred debate, with the Coalition suggesting a different approach.
The proposed bill, that aims to reduce the gender pay gap, would enable new mothers and fathers to receive 12 percent superannuation while on paid parental leave. Previously, parents did not receive superannuation during their leave.
In opposition, the Coalition has put forward changes that would give eligible parents a choice between three options.
They could either receive super contributions during paid parental leave or opt for an additional two weeks of leave without super, extending to 26 weeks after July 1, 2025, and 28 weeks after July 1, 2026.
Alternatively, parents could select a one-off payment equivalent to their super entitlement, estimated at $2,900 in 2025 when the scheme reaches 24 weeks, and $3,140 in 2026 as it extends to 26 weeks.
Prime Minister Anthony Albanese expressed his displeasure in Parliament at the Coalition’s opposition to his proposed bill.
“I thought this was legislation that should have just sailed through the park, legislation where those opposite would have looked at it, thought about it, and said, ‘Yes, the time has come.’ But of course, that’s not the case,” he said.
He further criticised the opposition, adding, “They don’t get superannuation and the important role that it plays in economic security. The coalition has given a range of options, but none of them are about superannuation. None of them are about higher retirement incomes for working women.”
The Coalition, in a statement, issued on Sept. 12 said, “Superannuation is not the government’s money. It is not the superannuation industry’s money. It is your money. The Coalition believes Australians should have the choice to use their superannuation entitlements to help them live their lives.”
Meanwhile, Minister for Social Services Amanda Rishworth said the bill is a step toward reducing the gender gap in retirement savings and supporting a dignified retirement for more Australians.
“The government has listened to calls from the union movement, the women’s movement, economists, and employers. We know that women make up the majority of primary caregivers in this country,” she said.
Rishworth also highlighted that women with children experience an average 55 percent drop in earnings within the first five years of parenthood, which leads to a compounded lower income over time and increases the superannuation gap between men and women at retirement.
“The data is clear: women retire with around 25 percent less super than men, and what we are doing with this bill is a positive investment into the future of working women, for babies born or adopted from the first of July 2025.”