[Australia] From July 2025 parents on government-paid parental leave will receive superannuation

In Australia, parents accessing the government-funded paid parental leave will receive superannuation on their payments from July 2025, following the passage of the federal government's legislation earlier this month, MSN reports.

The government stated that the changes would go some way to bridging the superannuation gap between men and women, which has partially arisen from women taking more time away from work to care for children.

Under the changes, parents with babies born or adopted after July 1 will reportedly receive an additional 12 per cent of their government payment as a contribution to their nominated super fund.

The payments will be calculated and administered by the Australian Taxation Office. 

Couples can currently access up to 22 weeks of paid parental leave (PPL) at the national minimum wage of $915.90 a week. It will increase to 24 weeks for children born or adopted after July 1 next year, and to 26 weeks in 2026. 

Around 180,000 families are estimated to receive the support each year.

Senate passed the legislation without a vote, after the Coalition's attempts to amend it were defeated.

The changes reportedly come in the wake of a recommendation from the Women's Economic Equality Taskforce, which called for superannuation to be paid on "all forms" of PPL in 2023 after it was asked by the government to consider how to improve the financial standing of women.

According to the government, women, on average, retire with about 25 per cent less super than men. Women make up a significant majority (86 per cent) of parents taking primary carer parental leave, the Household, Income, and Labour Dynamics in Australia (HILDA) survey found.

Yet a Treasury review of retirement incomes in 2020 determined that paying superannuation on government parental leave would have a minimal impact on women's retirements, with the median female receiving just 0.17 per cent extra in their annual income.

Instead, it said the gender gap in retirement incomes was due to women earning less over their careers, which flowed through to their super.

The new superannuation payments cost the budget of $1.1 billion over the next four years, the government said.

Prior to the 2019 election, Labor had committed to including super on government-funded PPL, however, it dropped the proposal at the last election citing costs.

Earlier this year parliament reportedly passed an expansion to PPL, paving the way for the number of days families are able to access the payments to gradually increase to 26 weeks.

Source: MSN

(Links via original reporting)

In Australia, parents accessing the government-funded paid parental leave will receive superannuation on their payments from July 2025, following the passage of the federal government's legislation earlier this month, MSN reports.

The government stated that the changes would go some way to bridging the superannuation gap between men and women, which has partially arisen from women taking more time away from work to care for children.

Under the changes, parents with babies born or adopted after July 1 will reportedly receive an additional 12 per cent of their government payment as a contribution to their nominated super fund.

The payments will be calculated and administered by the Australian Taxation Office. 

Couples can currently access up to 22 weeks of paid parental leave (PPL) at the national minimum wage of $915.90 a week. It will increase to 24 weeks for children born or adopted after July 1 next year, and to 26 weeks in 2026. 

Around 180,000 families are estimated to receive the support each year.

Senate passed the legislation without a vote, after the Coalition's attempts to amend it were defeated.

The changes reportedly come in the wake of a recommendation from the Women's Economic Equality Taskforce, which called for superannuation to be paid on "all forms" of PPL in 2023 after it was asked by the government to consider how to improve the financial standing of women.

According to the government, women, on average, retire with about 25 per cent less super than men. Women make up a significant majority (86 per cent) of parents taking primary carer parental leave, the Household, Income, and Labour Dynamics in Australia (HILDA) survey found.

Yet a Treasury review of retirement incomes in 2020 determined that paying superannuation on government parental leave would have a minimal impact on women's retirements, with the median female receiving just 0.17 per cent extra in their annual income.

Instead, it said the gender gap in retirement incomes was due to women earning less over their careers, which flowed through to their super.

The new superannuation payments cost the budget of $1.1 billion over the next four years, the government said.

Prior to the 2019 election, Labor had committed to including super on government-funded PPL, however, it dropped the proposal at the last election citing costs.

Earlier this year parliament reportedly passed an expansion to PPL, paving the way for the number of days families are able to access the payments to gradually increase to 26 weeks.

Source: MSN

(Links via original reporting)