Stay-at-home parents — the majority of whom are women — receive no employer Super Guarantee (SG) contributions while outside the paid workforce. Over years or decades out of employment, this creates a significant superannuation shortfall that affects retirement outcomes.
Understanding the options available to build super without employer contributions is important for long-term financial security.
Why Stay-at-Home Parents Miss Out on Super
The SG only applies to employment income. If you are not earning wages or salary:
- No employer contributes to your super
- Your super balance remains static (or grows only through investment returns)
- Fees and insurance premiums continue to erode your balance
- The compounding gap widens every year you are out of the workforce
Example: 5 years out of workforce (age 32–37)
- Missed SG on $70,000 salary: ~$40,250 over 5 years
- That amount at 7% for 23 years to age 60: ~$185,000 in foregone super
Options for Building Super as a Stay-at-Home Parent
1. Spouse Contributions (Partner Contributes to Your Super)
Your employed partner can contribute after-tax money directly to your super fund. This is the most practical way to build super when you are not working.
Spouse contribution tax offset: If you earn less than $37,000 and your spouse contributes at least $3,000, your spouse receives a tax offset of up to $540 (18% of up to $3,000 in contributions).
- Full offset ($540): Your income ≤ $37,000
- Reduced offset: Income $37,001–$40,000 (offset phases out)
- No offset: Income > $40,000
See Spouse Contributions and the Gender Super Gap.
2. Personal Voluntary Contributions
If you have some income — part-time work, investment income, rental income — you can make personal after-tax (non-concessional) contributions.
- NCC cap: $120,000/year (or up to $360,000 bring-forward)
- No minimum — even small amounts ($1,000/year) compound significantly
3. Government Co-Contribution
If you earn between $1 and $58,445 and make personal (after-tax) contributions, the government may match up to $500:
- On a $1,000 personal contribution: up to $500 co-contribution
- The rate reduces above $43,445 and phases out at $58,445
- Important: You need some income to be eligible — the co-contribution requires at least 10% of total income from work/business
4. LISTO (Low Income Superannuation Tax Offset)
If you work part-time and earn below $37,000:
- The government pays the 15% tax on concessional contributions back into your super
- Maximum LISTO: $500/year
- Applied automatically — you don’t need to apply
5. Inheriting Contributions When You Return to Work
When you return to paid work:
- Carry-forward concessional contributions: If your balance is below $500,000, you can contribute unused concessional cap amounts from the prior 5 years (potentially $150,000+ in catch-up contributions in one year)
- Salary sacrifice to accelerate the recovery of missed contributions
Keeping Your Super Account Active
While you are not working:
- Contact your fund to confirm your account is not at risk of being closed (low balance / inactivity rules)
- Check if your insurance will be cancelled after 16 months of inactivity and elect to keep it if appropriate
- Review your investment option — for long time horizons, a growth option continues to be generally appropriate
For more: Spouse Contributions, The Gender Super Gap, Boost Super as a Woman, Super and Motherhood. For advice on your situation, speak with a licensed financial adviser via MoneySmart.