Starting a family
Starting or extending your family is an exciting time. It also means big changes to your work, lifestyle and super
Parental leave and your super
How much super you earn is linked directly to your income. Taking time off work or reducing work hours to have and raise kids can significantly impact your super balance, now and in the future. The type of parental leave you take will also affect your super.
Unpaid parental leave
With unpaid parental leave, you won’t earn any super while on leave. It’s a good idea to plan for this pause to minimise the impact on your balance over the long term.
Employer paid parental leave
If you’re entitled to paid parental leave through your employer, you might earn super, though it depends on your employer and workplace conditions. Currently, employers don’t have to pay super on paid parental leave, and many choose not to. Check your enterprise agreement or employment contract to find out what you’re entitled to.
Government paid parental leave
Super is paid for all Government-funded parental leave from 1 July 2025.
The ATO will pay a lump sum amount into your super account after the end of the financial year in which you received the parental leave pay. The amount is based on the relevant super guarantee rate plus an interest component.
Contributions tax will be applied to the contribution, and it will count towards the before-tax (concessional) contribution cap.
For more information, visit the ATO website.
Planning ahead for your super
When it comes to having kids, there’s a lot to consider. Thankfully, a little planning can help ensure your super isn’t left behind as your family grows.
1. Think about combining accounts
If you’ve had more than one job, you might have more than one super account. Combining your super into one account can save fees and make looking after your super much easier.
2. Top up super before taking leave
If you can, add extra to your super before going on leave. This can boost your super and provide a buffer while you’re not regularly contributing.
3. Spouse contributions
If you’re taking a career break while your spouse is still working, ask them to contribute to your super. Apart from sharing the super love, they might get a tax offset for their troubles.
4. Contribution splitting
Spouses can also boost your balance through contribution splitting. This is where they transfer some of their before-tax contributions from their super to yours.
5. Parental leave insurance fee waiver
You can apply for your insurance fees to be waived for up to 12 months when you take parental leave—subject to certain criteria.
Other super considerations
Check your insurance
A bigger family can mean bigger financial responsibilities. Now’s a great time to ensure you have the appropriate amount of cover for you and your family if something goes wrong.
Review your beneficiaries
A new family member means a new family dynamic. Be sure to review your nominated beneficiaries to make sure they reflect your current circumstances.
Do your friends have more super than you?
