Superannuation paid on paid parental leave 2025

From 1 July 2025 the government will pay superannuation on its paid parental leave. This was included in the budget announced earlier this month.
Eligible parents with children born or adopted from July 2025 will receive an extra 12% of their government-funded paid parental leave as payment to their super fund. July 2025 is when employee’s compulsory contributions will rise to 12% of salary from the 11.5% which is effective from June 2024.

Paid parental leave can be taken flexibly, in blocks as little as a day, until the child turns 2 and can be shared between two parents.
Paying super was recommended by the Women’s Economic Equality Taskforce which was established in September 2022 based on an election commitment to prioritse advice to government on the many issues facing women in the Australian economy. The taskforce has since concluded with the final report having been published on 23 October 2023. See Taskforce.

The minister for women Kate Gallagher said that the latest data showed clearly 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% less super than men”

If you would like further information regarding parental leave and the upcoming superannuation changes, then please contact the Workplace Relations Team on 07 3872 2264 or at workplacerelations@amaq.com.au
 

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