New laws enabling parents to add superannuation to their government-funded paid parental leave are being introduced to federal parliament today, with Prime Minister Anthony Albanese saying the legislation will help close the gender gap.
“This is a modern policy for modern families which delivers choice, offers security and rewards aspiration,” he said.
“My government is boosting paid parental leave by extending it to a full six months. This strengthens that further, by adding superannuation on it as well.”
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“It’s another important step towards gender equality – which is good for families, good for business and good for our economy.”
If passed by MPs, the new laws will kick in on July 1 next year and impact people on government-funded paid parental leave.
The scheme is forecast to help 180,000 Australian families.
The reforms are part of the Albanese government’s shake-up of paid parental leave, which currently leaves women out of pocket when they retire because they don’t receive superannuation when they take time off to have children.
It means women can be left up to 25 per cent worse off than men when they retire.
Minister for Social Services Amanda Rishworth said the government was investing $1.1 billion to pay super on paid parental leave.
“By investing in these reforms, we are ensuring families can get the most of Paid Parental Leave and exercise more choice and flexibility, especially now that we are adding superannuation for a more secure retirement.”
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