More super for mums, dads as parental leave laws pass

New mums and dads will get extra superannuation on their government-funded paid parental leave after reforms cleared federal parliament.

Eligible parents with children born or adopted after July 1 will get 12 per cent super for up to six months of parental leave.

About 180,000 Australian families are expected to benefit from the new laws, which passed the Senate on Thursday.

Women retire with about $51,700 less superannuation on average than men due in part to their caring responsibilities, but these changes will help close the gender super gap, Women's Minister Katy Gallagher said.

"This is an important statement about the value that we place on parents taking time out of the paid workforce to care for the next generations - because you shouldn't have to sacrifice your future financial security to care for your babies," she said.

The changes have been welcomed by unions and super funds alike.

ACTU president Michele O'Neil said children should not cost Australians a secure and dignified retirement.

"Paying super on Commonwealth Paid Parental Leave is a win for parents, a win for gender equality and a win for the economy," she said.

Low-paid workers and those from vulnerable communities are also likely to benefit, AustralianSuper chief member officer Rose Kerlin said.

About 63 per cent of employers now offer paid parental leave, according to Deloitte data, but only 14 per cent of men took advantage of the offer in 2023.

"We need to normalise equal access to caring and career opportunities and continue supporting gender equality initiatives in the workplace," Ms Kerlin said.

The Business Council has also endorsed the changes but said they should be part of a broader strategy to boost female participation in the workforce and increase real wages.