The Albanese Labor Government is continuing to deliver on its commitment to provide greater support to Australian families by introducing legislation today which will pay superannuation on Government-funded Paid Parental Leave.
The introduction of the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 in the House of Representatives builds upon recent reforms which have made Paid Parental Leave more flexible, accessible, gender equitable, and which increase the length of the scheme.
Subject to the passage of legislation, eligible parents with babies born or adopted on or after 1 July 2025 will receive an additional payment, based on the Superannuation Guarantee (12 per cent of their Paid Parental Leave payment), as a contribution to their nominated superannuation fund.
Paying superannuation on Paid Parental Leave will improve the economic security in retirement of around 180,000 Australian families each year.
The Paid Parental Leave scheme provides financial support to eligible working parents to take time off work after a birth or adoption.
This legislation builds on recent reforms, including the expansion of the Paid Parental Leave scheme to 26 weeks by 2026. Since 1 July 2024, parents can receive 22 weeks of Paid Parental Leave, up from 20 weeks, resulting in more support as parents take time out of work to care for their newborn.
Pending the passage of legislation, a lump sum superannuation payment would be paid following the end of each financial year, including an interest component, where a recipient received Paid Parental Leave. The contribution will be automatically deposited into the superannuation accounts of eligible parents.
