New parents taking paid maternity or paternity leave will now be paid super under a new scheme passed today in parliament.
Superannuation payments will be paid on top of paid parental leave (PPL) under the Albanese government, giving back billions of dollars in retirement savings to mums and dads.
Eligible parents with babies born or adopted from July 2025 will be paid an additional sum, which is 12 per cent of the existing Parental Leave payment, nominated to their super account.
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The maximum amount of super parents will be paid after 26 weeks will be about $3000.
It will be paid to parents via a lump sum superannuation payment, including interest, at the end of each financial year they were paid PPL.
It will be automatically dropped into a parent’s nominated superannuation account.
Amanda Rishworth, Minister for Social Services, said superannuation being paid on top of paid parental leave will significantly boost retirement savings for mums and dads in Australia.
“We know women retire with 25 per cent less superannuation than men – an estimated $51,700 less on average,” she said.
“By investing in these reforms, we are ensuring families can get the most of Paid Parental Leave, exercise more choice and flexibility and have a more secure retirement”
On average, each year a parent is paid PPL without super, they lose more than $6000, according to HESTA.
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The lack of super on PPL particularly impacts Australian women.
In 2023, research found Australian mums had missed out on more than $2.8 billion in super savings by the time they reach retirement.
When the legislation was introduced, Prime Minister Anthony Albanese said it was an important move to help close the gender pay gap.
“This is a modern policy for modern families which delivers choice, offers security and rewards aspiration,” he said.
“It’s another important step towards gender equality – which is good for families, good for business and good for our economy.”
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