New mums and dads are set to receive a superannuation boost on top of government-funded paid parental leave.
Laws locking in 12 per cent super payments while parents use up to six months of parental leave passed the House of Representatives on Thursday.
With the coalition also backing the government changes, the super payments are all but assured to become law for an estimated 180,000 families each year.
The changes will apply for eligible parents with babies born or adopted from July 2025.
Prime Minister Anthony Albanese said it was critical reform.
"This will help narrow the gender gap in retirement savings," he told parliament.
"The first months of your child's life are so special, exhausting at times, but uplifting every day ... you can't put a price on spending that precious time with your new bub, and you shouldn't pay a price for it either."
While government paid parental leave is currently at 22 weeks, it will be expanded to six months from 2026.
The maximum amount parents will receive in superannuation will be $113 per week from 2025/26.
Families will get up to $3000 in total in super during the entire six months of parental leave.
Social Services Minister Amanda Rishworth said the changes would also address disparity in super balances between men and women, with women retiring with about 25 per cent less in their account.
"Women make up the majority of primary caregivers in this country. We know that women with children face an average 55 per cent drop in earnings in the first five years of parenthood," she said.
"We know that the effect of lower income compounds over time."
The opposition supports the super proposal, but has called for more flexibility on how parents can use the money.
Rather than just having superannuation paid on top of paid parental leave, the coalition said people should also have the option to instead get an extra two weeks of parental leave, or a lump sum payment equivalent to the amount they would receive in super.
Deputy Opposition Leader Sussan Ley said the move would have meant greater choices for families.
"We remind the government that superannuation is not their money, it is not the superannuation industry's money, it is money that belongs to Australians," she said.
"For young Australian families, they may need this money now, more than ever ... Australians should have that choice to use their superannuation entitlements to help them live their lives."
The opposition changes were eventually voted down.
