Super will be paid on parental leave from 2025
The government has long said it supports paying super on government-paid parental leave. It's now putting its money where its mouth is.
Mums and dads taking time off work to look after their newborns will be paid superannuation on top of paid parental leave from next year.
The new commitment is set to be unveiled in full at the National Press Club on Thursday by Minister for Women Katy Gallagher with further details in the May budget. It follows a long-term push from unions, superannuation funds, women’s equality groups and professional associations. It is in addition to a previously-announced plan to expand paid parental leave to six months by 2026.
In February, Capital Brief reported renewed optimism among industry that this measure would be introduced in the upcoming budget as it fits the bill as a non-inflationary measure that improves equity. The government previously said it was committed to paying super on parental leave when the fiscal circumstances were suitable. The budget hit a record $22 billion surplus in 2022-23.
The commitment means that from July 2025, eligible parents who have a baby, or adopt a child, will receive a 12% superannuation payment on top of their government-funded paid parental leave. Typically, about 180,000 families receive this payment each year.
