Kenney Rule Explained: Superannuation Fairness for Australians in 2025

The Australian superannuation landscape is evolving, and one name has been making waves: the Kenney Rule. As policymakers and industry leaders grapple with ensuring equitable retirement outcomes, understanding the Kenney Rule is essential for anyone invested in their super. In 2025, with new superannuation reforms and ongoing debates about fairness, the Kenney Rule has taken centre stage in discussions around retirement policy and financial planning.

What Is the Kenney Rule?

The Kenney Rule refers to a set of recommendations and guiding principles introduced to address disparities in superannuation balances, particularly between different genders, income brackets, and employment types. Named after policy advocate Dr. Lisa Kenney, the rule aims to create a more level playing field by ensuring contributions and tax concessions are distributed more equitably across Australia’s workforce.

Key elements of the Kenney Rule include:

• Progressive Superannuation Contributions: Adjusting employer contribution rates based on income, with lower earners receiving a higher percentage boost.

• Enhanced Government Co-Contributions: Expanding eligibility and increasing payments for low- and middle-income earners, particularly targeting women and part-time workers.

• Review of Tax Concessions: Shifting tax benefits to reduce the gap between high and low superannuation balances.

These measures align with the Australian Government’s 2025 commitment to improving retirement outcomes and addressing the gender super gap, as highlighted in the recent Federal Budget papers and Treasury consultations.

Why the Kenney Rule Matters in 2025

Superannuation inequality remains a pressing issue in Australia. According to the latest ABS data, women retire with an average of 23% less in super than men, and part-time and gig economy workers are often left behind by traditional contribution models. The Kenney Rule addresses these shortcomings by:

• Directing more support to vulnerable workers: By increasing government co-contributions and mandating higher employer contributions for low-wage earners, the rule provides a tangible boost to those at risk of inadequate retirement savings.

• Reducing the gender gap: With women more likely to take career breaks or work part-time, progressive contributions and targeted incentives directly tackle this imbalance.

• Modernising superannuation for the gig economy: The rule encourages inclusion of contract, freelance, and casual workers, who have historically been excluded from consistent super contributions.

In 2025, the Australian Government has begun trialling Kenney Rule-inspired reforms in several pilot programs, including increased co-contributions for parents returning to work and superannuation credits for carers—moves widely welcomed by consumer advocacy groups and the Financial Services Council.

Real-World Impact: Examples and Outcomes

Consider the case of Emily, a 35-year-old part-time retail worker earning $38,000 a year. Under the Kenney Rule’s progressive superannuation contributions, Emily’s employer now contributes 12.5% of her salary instead of the standard 11%, and she’s eligible for an annual $700 government co-contribution. Over a decade, this could add over $15,000 to her retirement savings—enough to make a real difference.

Meanwhile, high-income earners continue to receive the mandated 11% contribution, but with capped tax concessions, ensuring the system doesn’t disproportionately benefit the wealthiest Australians.

Other tangible outcomes seen in 2025 include:

• Smaller superannuation gap between men and women for the first time in a decade, as reported by the Australian Institute of Superannuation Trustees (AIST).

• Rise in voluntary contributions from low- and middle-income earners, credited to clearer incentives and better financial literacy campaigns tied to the Kenney Rule framework.

• Increased participation in superannuation by gig and platform workers, thanks to simplified onboarding and expanded eligibility criteria.

Looking Ahead: What the Kenney Rule Means for Your Retirement Strategy

For Australians planning their retirement in 2025 and beyond, the Kenney Rule offers both reassurance and opportunity. By prioritising equity and fairness, these reforms help ensure more people—regardless of gender, income, or work pattern—can look forward to a secure retirement.

To take advantage of these changes, Australians should:

• Check if they qualify for enhanced government co-contributions under the new rules.

• Review employer superannuation contributions, especially if working part-time or in the gig economy.

• Consider making additional voluntary contributions to further boost retirement savings, leveraging new incentives.

Financial advisers are already reporting increased interest in tailored superannuation strategies, as Australians seek to make the most of a fairer, more inclusive system shaped by the Kenney Rule.