Mother’s Day has brought renewed focus to the financial cost of unpaid care, with new insights highlighting how the motherhood super penalty continues to erode women’s retirement outcomes.
Research from Rest found female members in peak caring years are more likely to experience low-income patterns and fall behind male counterparts in super contributions, reinforcing what it described as a systemic issue across Australia.
“As a fund representing well over 1 million women, Rest sees firsthand the long term impact the motherhood super penalty can have on women’s super,” said Enrico Burgio, general manager, public policy & advocacy at Rest.
“Our superannuation system continues to treat unpaid care as time away rather than time given,” Burgio said. “Interrupted work patterns, reduced hours and periods of unpaid caring work are among the strongest contributors to the gender super gap.”
Analysis of Rest’s more than 2 million members, nearly 60 per cent of whom are women, showed disparities emerge early and intensify over time.
Women accounted for 57 per cent of members receiving the Low Income Super Tax Offset (LISTO) at ages 18–25, rising to 75 per cent for those aged 31–40.
Average contributions also lagged, with female members aged 25-40 receiving $6,360 annually compared to $7,484 for male members.
The findings align with broader national trends, where women retire with 26 per cent less super than men.
Earnings also diverge sharply following childbirth, with women’s incomes falling by 55 per cent over five years while men’s remain unchanged, alongside women being 2.7 times more likely to work part-time.
Support for policy intervention appears strong, with two-thirds of surveyed Rest members backing government compensation for super missed during periods of unpaid care.
Meanwhile, support was higher among women at 70 per cent, compared to 61 per cent among men.
Rest said employer support during parental leave remains uneven, noting that while 67 per cent of employers offer paid parental leave and 85 per cent pay super on employer-funded leave, only 15 per cent extend super contributions to unpaid parental leave.
The fund is calling on the Federal Government to consider Superannuation Carer Credit models as a potential solution, arguing this would help address gaps created when individuals step out of the workforce to care for children or dependants.
“Introducing super on Government Paid Parental Leave was a critical step forward. Superannuation Carer Credits are the next logical step – recognising unpaid care as real economic work and helping ensure the years parents spend raising children don’t become decades of reduced financial security.”
