One year since super on Commonwealth Parental Leave Pay took effect alongside the super guarantee reaching 12%, HESTA modelling shows just how much these critical reforms can improve women's retirement outcomes.
For a typical HESTA member who takes Commonwealth Paid Parental Leavei the payment of super can make a meaningful difference at retirement. The Fund's previous modelling, based on 18 weeks of leave, shows the payment of super potentially adds around $6,500 at retirement. For those who take leave for two children, that benefit increases to nearly $13,000.ii
The first of these super contributions are imminent, with Australians who received Government-funded Parental Leave Pay during 2025–26 set to see this super arrive in their accounts from the Australian Taxation Office following the end of that financial year.
Further modellingiii shows womeniv beginning their careers with the full 12% super guarantee in place for their entire working lives could retire with $712,000 – a potential $411,000 boost compared to women modelled to have retired in 2025.v
HESTA CEO Debby Blakey said the one-year anniversary marked a genuine turning point for the Fund's more than one million members, around 80% of whom are women, many working in typically lower-paid sectors including 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," Ms 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."
HESTA had long advocated for the paid parental leave change, which addressed a structural gap that had seen Australian mothers miss out on well over $3 billion in super savings since the Commonwealth scheme was introduced in 2011.vi Meanwhile the lift in the super guarantee is set 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.
"The 12% guarantee means women starting work today could retire with more than doubleii iv the amount of super compared to female workers who retired last year."
Low-income earners are also set to benefit from upcoming Low-Income Superannuation Tax Offset (LISTO) reform, for which HESTA long advocated. 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.
Ms Blakey said it was important to keep the momentum going on positive super reform, as there was still much work to do to make Australia's retirement system fairer. She said HESTA is supportingvii research to design a workable model for superannuation 'carer credits'. This reform is needed to ensure those whose workforce participation is impacted by the need to provide unpaid care can get a better deal in retirement.
