Superannuation To Be Paid On Parental Leave

New parents are set to have their superannuation topped up by the federal government while on government-funded Paid Parental Leave.

If the legislation passes, eligible parents with babies born or adopted on or after 1 July 2025 will get 12% super paid into their nominated superannuation fund.

The move would benefit 180,000 families, with new parents expected to receive $3000 in super over the length of their leave, which will expand to six months from 2026.

“This is a modern policy for modern families which delivers choice, offers security and rewards aspiration,” said Prime Minister Anthony Albanese.

Minister for Women, Katy Gallagher added, “We know that women continue to face difficult decisions and financial penalties when choosing to raise a family. These long-overdue changes will help ease those penalties and lessen the impact on women’s retirement savings.

“Paying super on Paid Parental Leave will complement the other work our Government is doing, including expanding the Paid Parental Leave scheme to six months and making childcare cheaper and more accessible.”

Pending the passing of the legislation, a lump sum superannuation payment would be paid following the end of each financial year, including interest, where a recipient received Paid Parental Leave. The contribution will be automatically deposited into the superannuation accounts of eligible parents.

What do you think? Let us know your opinion in the comments below.

23 Comments

- - mom497483 said
  - 28 Sep 2024
    8:19 pm
Wow! What a step forward for Mums and parents everywhere. It’s hard enough to survive without having to worry about your super growth stopping or slowing down while you’re off trying to keep a Baby alive. This will definitely help many households and future generations to come. Not often you hear a positive news story.

- - mom462038 said
  - 07 Sep 2024
    10:22 am
How good is life getting for parents these days. Childcare becoming more affordable, maternity and paternity paid leave now this. It’s still not perfect, but it’s coming along in leaps and bounds

- - MandaMags said
  - 28 Aug 2024
    1:27 pm
That’s great news for anyone looking at starting or extending their families.

- - rovermum said
  - 27 Aug 2024
    11:43 am
While not relevant to me, great that my future DIL and any future granddaughters will benefit from this.

- - mom223151 said
  - 27 Aug 2024
    10:49 am
Well it’s about time.

- - mom513329 said
  - 27 Aug 2024
    8:09 am
A step in the right direction for closing the gap!

- - mom101628 said
  - 26 Aug 2024
    11:21 pm
This should have been done from the beginning and would thus have not been a part of the great divide between women and men’s superannuation balances. Pleased it will be done for future mums.

- - mom265671 said
  - 26 Aug 2024
    9:52 pm
Definitely should have always been one from the start

- - MummaBear said
  - 26 Aug 2024
    8:58 pm
about time

- - sars_angelchik said
  - 26 Aug 2024
    2:37 pm
It’s a great idea. There’s a lot of women who miss out on a lot less super while having children.

- - mom488690 said
  - 26 Aug 2024
    2:05 pm
Wonderful idea, wish they had this when I had babies

- - BellaB said
  - 25 Aug 2024
    7:02 pm
I think this is a great move.

- - mom160270 said
  - 25 Aug 2024
    12:11 pm
This makes a lot of sense.

- - mom486207 said
  - 24 Aug 2024
    2:09 pm
What a wonderful idea. I hope it gets passed. Let’s sort this out so we can help our future selves and ensure that this legislation is in place for future generations.

- - cassy26 said
  - 24 Aug 2024
    9:29 am
Great initiative. So many parents ( women especially) left without enough super for retirement.

- - mom93821 said
  - 24 Aug 2024
    4:59 am
It is so important to have superannuation; will be interesting to find out more details.

- - Ellen said
  - 24 Aug 2024
    4:29 am
I’m sure this will be a blessing for those who benefit from this.
- Ellen replied
  
  24 Aug 2024 , 7:32 am
  I wonder how this effects your retirement payment ?
  - mom93821 replied
    
    26 Aug 2024 , 10:40 am
    
    Being able to fund retirement is necessary.
- - BellaB said
  - 23 Aug 2024
    6:51 pm
Good! It’s about time. I only wish it had been available when I took leave.

- - ChiWren said
  - 23 Aug 2024
    6:21 pm
Very great, but parental leave is weird. Hubs works in the public health system and only had 2 weeks paid leave.

- - mom486197 said
  - 23 Aug 2024
    3:02 pm
Great initiative, wish it was around when i was on mat leave, I could have used this with being a single parent.