[Australia] Superannuation will be paid on paid parental leave

In Australia, the government has announced plans to continue improving paid parental leave (PPL) by starting to pay superannuation (super) on the government payment from July 1, 2025, Human Resources Online reports.

The first payments will coincide with the launch of Working for Women; the country's first national strategy aimed at achieving gender equality.

Paying superannuation on PPL was reportedly a key recommendation of the Women’s Economic Equality Taskforce and is something that has been campaigned for by unions and the women’s movement for a long time.

The reform was announced in a joint ministerial release on March 7, 2024. It represents both an investment in women’s economic security and the broader economy, advancing the Government’s work to modernise PPL and expand the payment to a full six months by 2026.

In addition, paying super on Government PPL will help to normalise parental leave as a workplace benefit, similar to annual and sick leave, and mitigate its impact on retirement funds.

The reform, if approved, will see families having access to an additional two weeks of leave (totalling 22 weeks) from July 1, 2024. This will increase to 24 weeks from July 2025 and 26 weeks from July 2026.

It builds upon previous changes made last July to broaden access to the payment and simplify parental leave sharing between parents.

This reportedly included a more generous $350,000 family income test and an easier process for both parents to share care.

At present, the proposal is reportedly under consideration in the Senate. According to the Australian Taxation Office, it is not yet law. Further specifics about paying retirement savings on PPL, including costs, will be outlined in the next Budget.

Senator Katy Gallagher - Minister for Women - said, “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."

For this reason, she said, paying super on Government parental leave is an important investment to help close the super gap and make it easier for women to make decisions about balancing caring responsibilities and work.

Amanda Rishworth - Minister for Social Services - stated the move is a significant step towards prioritising gender equality, better value care work and improving women's workforce participation. 

"It helps normalise taking time off work for caring responsibilities and reinforces Paid Parental Leave is not a welfare payment – it is a workplace entitlement just like annual and sick leave," she said.

Source: Human Resources Online

(Links and quotes via original reporting)

In Australia, the government has announced plans to continue improving paid parental leave (PPL) by starting to pay superannuation (super) on the government payment from July 1, 2025, Human Resources Online reports.

The first payments will coincide with the launch of Working for Women; the country's first national strategy aimed at achieving gender equality.

Paying superannuation on PPL was reportedly a key recommendation of the Women’s Economic Equality Taskforce and is something that has been campaigned for by unions and the women’s movement for a long time.

The reform was announced in a joint ministerial release on March 7, 2024. It represents both an investment in women’s economic security and the broader economy, advancing the Government’s work to modernise PPL and expand the payment to a full six months by 2026.

In addition, paying super on Government PPL will help to normalise parental leave as a workplace benefit, similar to annual and sick leave, and mitigate its impact on retirement funds.

The reform, if approved, will see families having access to an additional two weeks of leave (totalling 22 weeks) from July 1, 2024. This will increase to 24 weeks from July 2025 and 26 weeks from July 2026.

It builds upon previous changes made last July to broaden access to the payment and simplify parental leave sharing between parents.

This reportedly included a more generous $350,000 family income test and an easier process for both parents to share care.

At present, the proposal is reportedly under consideration in the Senate. According to the Australian Taxation Office, it is not yet law. Further specifics about paying retirement savings on PPL, including costs, will be outlined in the next Budget.

Senator Katy Gallagher - Minister for Women - said, “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."

For this reason, she said, paying super on Government parental leave is an important investment to help close the super gap and make it easier for women to make decisions about balancing caring responsibilities and work.

Amanda Rishworth - Minister for Social Services - stated the move is a significant step towards prioritising gender equality, better value care work and improving women's workforce participation. 

"It helps normalise taking time off work for caring responsibilities and reinforces Paid Parental Leave is not a welfare payment – it is a workplace entitlement just like annual and sick leave," she said.

Source: Human Resources Online

(Links and quotes via original reporting)