Still, comparing the ASFA guide figures with what’s happening on the ground reveals how falling behind can quickly accumulate and negatively impact women. According to 2019 data from the Australian Tax Office, the average superannuation balance for women aged 30-34 is just $42,240 – that’s an average deficit of over $30,000 from where their balances should be. For those aged 35-39, the average super balance climbs to $66,611. This time, the deficit between what’s needed for a bare minimum “safe” retirement and what is actually there is almost double.

Based on those stark figures alone, $106 a week is clearly not a silver bullet. It’s less than what many women would receive as a super contribution from their employers if they were still working.

We also know that 20 or 26 weeks leave is less time off than most new parents take, with the average Australian taking six to 12 months out of the workforce after a baby arrives. But if the alternative to $106 a week is nothing, I’ll always advocate for something, if only as a starting position on which to build.

While it’s very normal that people will have different super balances come retirement age (a teacher will never match that of a chief executive), gender and a person’s decision to have children should not be the single determining factor whether someone lives in poverty or luxury in their later years. But as we see it played out over and over again in data, research, and reporting, it is.

Through its Model of Australian Retirement Incomes and Assets, the Treasury predicts that in the future, “the gender gap in balances is expected to reduce, but remain persistent,” and notes somewhat grimly, “While women continue to have lower labour force participation and incomes than men, they will continue to make up a higher proportion of those with lower balances in retirement.”

In real terms, this roughly translates to: things will get better, but only nominally, and for as long as women take unpaid leave and work part-time or casually to do what’s best for their families, they’ll have to pay for it when they retire.

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So no, $106 is not the fix. Dedicated efforts from employers, further policies, and frank conversations between partners about superannuation being a shared expense (and long-term investment) still need to be had. But as I’ve said, it’s a solid start.

If all of this still doesn’t sound all that impressive or have you buying into the change, there’s also a significant cultural shift in attitude attached to this policy. We might not feel it overnight, or even over a single decade for that matter, but we will feel it in our lifetimes.

Consider this: paying superannuation is a legal requirement for employers as a recognition of their hard work and in recognition of their right to enjoy a dignified and comfortable retirement. In extending this contribution to new parents, the government is formally recognising the very real work of parenting.

This policy change acknowledges that domestic labour is just as legitimate as any other form of labour and that the tireless work that goes into caring for a newborn benefits Australia’s economy in the long term.

It says to the 88 per cent of women who take on the primary caregiver role in the early years of their children’s lives that their personal choices and decisions about what’s best for their family don’t have to come at the expense of their personal financial security in retirement. And that their decision not to work during this period is just as valid as those who do.

Victoria Devine is an award-winning retired financial advisor, best-selling author and host of Australia’s No. 1 finance podcast, She’s on the Money. Victoria is also the founder and co-director of Zella Money.

• Advice given in this article is general in nature and not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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