The government will begin making superannuation payments to parents on its paid parental leave scheme from July 2025.
Eligible parents with babies born on, or adopted after, 1 July 2025 will receive an additional payment to their super account. This payment will be 12 percent of their paid parental leave payment.
The Australian Taxation Office (ATO) stated it will make the first payments from July 2026, with the contributions automatically deposited to a parent’s super account.
Parents will receive a lump sum superannuation payment following the end of each financial year where they received paid parental leave.
This payment will also include an interest component, to cover the investment returns missed as a result of the payment being annual.
Mary Delahunty, the CEO of the Association of Superfunds of Australia (ASFA), said the payment of super on paid parental leave is “an acknowledgment of the sacrifices so many women make for their families.”
“For too long, women have carried the burden of reduced superannuation simply because they took time out to care for others. These caring roles contribute meaningfully to the economy but come at a cost of dignity in retirement, mainly for women,” she said.
Statistics show that women, on average, have lower super balances than men, with time out of the workforce to care for children among the contributing factors.
If you want to learn more or need help with making a decision about your super, you can get simple advice over the phone. It’s included as a part of your membership so there’s no extra cost.
