New mums and dads could soon be able to earn superannuation even while on government-funded paid parental leave.
Laws that will allow for parents to get 12 per cent superannuation while using paid parental leave will be introduced to federal parliament on Thursday.
If passed, the scheme will come into effect from July 2025, which is expected to help 180,000 families who use government-funded leave following the birth of a child.
While the laws would apply both to new fathers and mothers, maternity leave is usually much longer, and Social Services Minister Amanda Rishworth said the laws were intended to benefit women.
‘Not only is our government providing immediate support to Australians with a new baby, but we’re boosting their retirement savings,’ she said.
‘One of the best ways to boost productivity and workforce participation is to provide more choice and more support for families, and more opportunity for women.’
It’s estimated women end up have one-third less in their super balance than men by retirement age.
While some employers with paid-parental leave schemes already pay superannuation on top, the laws would ensure parents using government-funded leave would have the same benefit.
New mums and dads could soon be able to earn superannuation on top of government-funded paid parental leave under new laws being introduced by Anthony Albanese’s government
While some employers with paid-parental leave schemes already pay superannuation on top, the laws would ensure parents using government-funded leave would have the same benefit
It comes as Commonwealth paid parental leave will be expanded to six months by 2026.
‘We know paid parental leave is vital to the health and wellbeing of families, parents and children. Not only is it good for family, but it’s also good for our economy,’ Ms Rishworth said.
‘Improving paid parental leave is a critical reform.’
