Australian women retire with 23% less super than men on average — approximately $62,000 less at retirement. This gap isn't because women are worse at saving; it's a structural problem driven by the gender pay gap, time out of the workforce for caring responsibilities, and part-time work patterns. Understanding the gap is the first step to closing it.
Why the super gap exists
The pay gap
Women in Australia earn approximately 13% less than men on average (full-time equivalent). Since SG contributions are a percentage of salary, lower pay means lower super contributions every single year of a working career.
Career breaks
Women are far more likely to take extended leave for parenting and caring. A 5-year career break for child-rearing means 5 years of zero SG contributions. On a $80,000 salary at 12% SG, that's $48,000 in missed contributions — plus decades of lost compound growth, potentially worth $200,000+ by retirement.
Part-time work
After returning from parental leave, many women work part-time. Part-time salary means part-time super. A woman working 3 days a week instead of 5 receives 40% less SG each year.
Strategies to close the gap
1. Spouse contributions
If your partner earns more, they can make non-concessional contributions directly to your super and claim a tax offset of up to $540 (if you earn under $40,000). Even without the offset, spouse contributions help build your balance during career breaks.
2. Contribution splitting
Your higher-earning partner can split their concessional contributions with you — transferring up to 85% of their SG and salary sacrifice into your super account. This is an effective way to equalise balances over time.
3. Government co-contribution
If you earn between $45,400 and $60,400, making a $1,000 after-tax contribution to your super triggers a government co-contribution of up to $500. This is particularly valuable during years of part-time or lower income. See our low-income earners guide.
4. LISTO for low-income years
The Low Income Superannuation Tax Offset (LISTO) refunds the 15% contributions tax on SG (up to $500/year) for people earning $37,000 or less. During career breaks or part-time years, this effectively makes your employer's SG contributions tax-free.
5. Salary sacrifice when you can
In your working years — especially before and after career breaks — salary sacrificing even small amounts makes a big difference. $100/week in your 30s grows to roughly $220,000 by age 67 at 7% net returns.
6. Review insurance
Women are more likely to need income protection insurance (due to conditions like pregnancy complications), but less likely to have adequate cover. Check what insurance is inside your super and whether it meets your needs.
Employer obligations during parental leave
Employers are required to pay SG on Paid Parental Leave funded by the government (since 1 July 2023). However, SG is not required on unpaid parental leave. Some employers voluntarily contribute SG during unpaid parental leave — check your enterprise agreement or ask HR.
Super and separation
If your relationship ends, super is considered property and can be split in a property settlement. This is critically important for women who have less super due to career breaks — don't leave your super entitlement on the table during a separation.
Related guides
- Super for low-income earners
- Spouse contribution splitting
- Contribution caps 2025–26
- Super and divorce