- Published
On 7 March 2024, the Albanese Government announced alongside the Working for Women strategy, its plans to provide superannuation benefits on the government-funded Paid Parental Leave (PPL) starting from 1 July 2025. The administration of this initiative will be handled by the ATO. It’s important to note that this proposal has not yet been enacted into law.
The unveiling of this initiative will coincide with the launch of Working for Women, the inaugural national strategy aimed at attaining gender equality in Australia. It complements the Government’s ongoing efforts to modernise Paid Parental Leave and extend the benefit period to a complete six months by 2026.
"These reforms will assist in closing the gender divide on superannuation balances at retirement"
It should be noted that currently, when either parent receives government-funded PPL, it does not attract superannuation.
According to Hon Katy Gallagher, Minister for Finance, Minister for Women, Minister for the Public Service, “the data is clear – that when women take time out of the workforce to raise children it impacts their retirement incomes with women retiring, on average, with about 25 per cent less super than men. Paying super on Government parental leave is an important investment to help close the super gap and make decisions about balancing care and work easier for women”.
In addition to being a crucial suggestion from the Women’s Economic Equality Taskforce, the inclusion of superannuation in Paid Parental Leave (PPL) has been a longstanding advocacy effort by unions and the women’s movement.
This adjustment represents a commitment to enhancing women’s economic stability and
contributing to the overall economic landscape.
For more information about superannuation on PPL, visit the ATO website.
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