Starting a family

Starting or extending your family is a joyous and 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

In March 2024, the government said it will include super in government-paid parental leave from 1 July 2025. While this is welcome support for Australian families — particularly women, who account for 88% of all primary carer’s leave* — you’re still likely to earn less super while on paid parental leave.

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.

Combine super

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.

Grow your super

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.

Spouse contributions

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.

Contribution splitting

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.

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