Australians who leave the workforce to care for family members could retire with about $45,000 less in superannuation than they otherwise would, prompting renewed calls to extend compulsory super payments to unpaid carers.
New analysis from the Super Members Council found recipients of the Carer Payment miss out on thousands of dollars in annual super contributions while providing intensive care, a gap the industry body said disproportionately affects women and undermines the principle of universal superannuation.
The report estimated that applying the 12 per cent Super Guarantee to the Carer Payment would provide around 334,000 carers with an average $3,072 a year in super contributions.
More than 70 per cent of people receiving the payment are women, reflecting the uneven distribution of caring responsibilities across the community.
“Australia’s super system is meant to be universal, but today more than a million Australians are still missing out on the same guarantee as 17 million of their fellow Australians – simply because of their age, the work they do or who they are. That’s just not fair,” said Super Members Council chief executive Misha Schubert.
The council argued that carers perform work that would otherwise place greater pressure on government-funded health, disability and aged care services, yet receive no super support while undertaking those responsibilities.
Women are three times more likely than men to take on informal caring duties, while more than one in seven women experience primary caregiving responsibilities between the ages of 45 and 65, according to the report.
“Paying super on the Carer Payment would be a big step forward for fairness that recognises the economic value of care and would make a real difference — especially for women, who carry the bulk of caring responsibilities. It’s a foundation stone to begin to tackle the carer poverty penalty,” Schubert said.
The findings form part of a broader review of gaps in the Super Guarantee system, which the council estimates leave more than one million Australians without access to compulsory retirement contributions.
Beyond carers, the report identified gig economy workers, part-time employees under the age of 18 and some domestic workers as groups still excluded from full super coverage.
According to the research, 515,000 teenagers working fewer than 30 hours a week will miss out on $405 million in super this financial year because of existing eligibility rules.
The council also estimated that around 37,000 domestic workers employed in private homes missed out on super in 2026-27, with women accounting for 86 per cent of those affected. Collectively, those workers forfeited almost $150 million in retirement savings.
Gig economy workers were another area of concern, according to the SMC. The report found creating a pathway for super payments in app-based and contractor roles would provide around 184,000 workers with an average $2,220 a year in super contributions.
Support for extending super to carers came from advocacy groups, which warned growing demands on unpaid carers could worsen retirement outcomes.
“With the recent cuts to the NDIS, many carers will be providing more unpaid care. Any initiatives that can help carers in their retirement are welcome,” said Carers Australia chief executive Joanna Cave.
Women in Super chief executive Jo Kowalczyk said the report highlighted the effect of workers missing out on super despite their participation in the workforce.
“It also draws attention to the broader challenge of unpaid care, which continues to interrupt women’s workforce participation and reduce retirement savings over a lifetime.”
COTA Australia chief executive Patricia Sparrow added: “Looking after a loved one should not mean facing poverty in retirement. Superannuation for carers is a practical way to recognise unpaid care and help ensure more Australians can retire with the dignity and security they deserve.”
