Super on paid parental leave an important step forward on gender equity, early childhood education

Thursday 7 March 2024 The Centre for Policy Development (CPD) welcomes the Commonwealth Government’s important decision to begin paying super on Commonwealth Parental Leave Pay from 1 July 2025.

This is a significant piece of legislation that has long been advocated for by a wide range of stakeholders across gender equity and early childhood sectors. It was a key recommendation in a recent report by the Women’s Economic Equality Taskforce, chaired by Sam Mostyn, and something that CPD has supported as a way to not just support parents, but support children, families and the economy.

CPD’s landmark Starting better report highlighted paid parental leave as a fundamental feature of a well-connected, holistic early childhood development system, and this announcement paves the way for a more equitable and inclusive paid parental leave offer for Australian families.

Not only will this policy help narrow the gap in pay and super, a significant step forward on gender equity, it will allow parents to make easier decisions around balancing career breaks and caring for their children. 

Centre for Policy Development deputy CEO Annabel Brown highlighted that this move will make a significant difference to the lives of Australian women, parents and families.

“We know that too many parents have to make difficult decisions around taking the time to care for their children, pursuing their careers and balancing the family budget.

“We also know that, on average, it is women who are the ones taking career breaks that disadvantage them in their later working life and lead to lower overall earnings.

“Paying super on paid parental leave will ensure that parents are not unfairly disadvantaged by taking time away to care for and nurture their children in some of the most important years of their life.”