Around 180,000 families each year are set to are set to benefit from new laws to pay superannuation on Commonwealth Paid Parental Leave.
From 1 July 2025, the federal government will pay 12% superannuation to parents accessing paid parental leave, subject to the passing of legislation introduced into Parliament today.
The Albanese Government said its Paid Parental Leave Amendment (adding Superannuation for a More Secure Retirement) Bill 2024 builds on reforms to make paid parental leave more accessible, gender equitable and longer, with the scheme set to extend to 26 weeks by 2026.
Under the move, a lump sum payment will be paid after the end of each financial year, including an interest component, where a recipient received paid parental leave.
“Paying super on paid parental leave is part of our efforts to ensure women earn more, keep more of what they earn, and retire with more,” Prime Minister Anthony Albanese said.
The ANMF has lobbied for the changes for years to help nurses, midwives and AINS who have suffered inequity through the loss of super while taking time out of the workforce to have children.
“Women comprise 89% of the Australian nursing and midwifery workforce, who, on average can retire with up to 40% less super than men – and that must change if working women have any chance of reaching a secure retirement with a comfortable standard of living,” ANMF Federal Secretary Lori-Anne Sharp said earlier this year when the government announced its commitment in the lead up to the federal budget.
Superannuation fund HESTA welcomes the government’s introduction of paid parental leave legislation.
“This milestone brings us one step closer to addressing a longstanding gender-blind spot in our retirement system,” HESTA CEO Debby Blakey said.
“For more than 13 years, HESTA – along with many other sector voices – tirelessly advocated for this important equity measure.
“More than 80% of our one million-plus members are women, with many working in typically lower-paid industries such as aged care or early childhood education.
“Paying super on paid parental leave will help our members add to their retirement accounts, narrowing the gender super gap and making Australia’s super system fairer.”
