Government to Pay Superannuation on Paid Parental Leave


In a significant move aimed at advancing gender equality and bolstering retirement savings, the federal government has announced plans to provide 12% superannuation on government-funded paid parental leave (PPL) starting from July 2025.

This reform, arising from recommendations put forth by the Women’s Economic Equality Taskforce and advocacy from unions, aims to address the retirement savings gap, which sees women retiring with approximately 25% less superannuation than men.

Commencing July 1, 2025, parents of children born on or after this date will receive 12% superannuation in addition to their government-funded PPL. This initiative is expected to benefit around 180,000 families annually.

This latest development builds upon the federal government’s Paid Parental Leave Amendment (More Support for Working Families) Bill 2023, currently under consideration in the Senate. The Bill proposes to extend families an additional 6 weeks of PPL, providing them with an extra 2 weeks of leave each year until the scheme's duration is expanded to 26 weeks by July 2026.

Further details regarding the implementation of superannuation payments on PPL will be disclosed in the federal budget. Stay tuned for updates!

Source: Treasurer, Minister for Finance, Minister for Women, Minister for the Public Service and Minister for Social Services

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Written by Ideas Group

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