The Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 has passed into law.
It means that super can be paid to parents receiving paid parental leave from next July.
If your child is born, or adopted by you, after 1 July 2025, you will be eligible to receive an additional 12% to your super in addition to your government paid parental leave payments. The ATO will administer payment of the super for you and they will calculate how much your super payments will be under this scheme.
This addition of super payments to paid parental leave will come into affect at the same time that the paid parental leave timeframe increases to 24 weeks (from the current 22 weeks). This timeframe then increases again to 26 weeks in 2026.
The addition of super for people receiving paid parental leave payments is designed to help reduce the gender super gap, where currently women, who generally reduce working hours to care for children, retire with $85,000 less in their super than men*. You can read more about the gender super gap and tips on the SuperGuru website.