September 19th 2024.
Today, a new scheme has been passed in parliament that will benefit new parents who are taking paid maternity or paternity leave. Under the Albanese government, parents will now receive superannuation payments on top of their paid parental leave. This means that billions of dollars in retirement savings will be given back to mothers and fathers.
Starting from July 2025, eligible parents who have had babies born or adopted will receive an additional 12 per cent of the existing Parental Leave payment, which will go directly to their super account. This is great news for parents, as it means that they will have more financial support during this important time in their lives. The maximum amount of super that parents can be paid after 26 weeks will be around $3000.
The superannuation payments will be given to parents as a lump sum, including interest, at the end of each financial year that they were receiving paid parental leave. This will be automatically deposited into the parent's nominated superannuation account. Amanda Rishworth, Minister for Social Services, expressed her excitement about this new policy, stating that it will significantly boost retirement savings for mothers and fathers in Australia. She also highlighted the gender pay gap, stating that women retire with 25 per cent less superannuation than men, on average missing out on $51,700.
According to HESTA, on average, each year a parent receives PPL without super, they lose more than $6000. This has a particularly negative impact on Australian women, as research has shown that in 2023, they missed out on over $2.8 billion in super savings by the time they reach retirement. Prime Minister Anthony Albanese also spoke about the importance of this policy in closing the gender pay gap, stating that it is a modern solution for modern families, offering choice, security, and rewards for hard work.
Overall, this new scheme is a significant step towards gender equality, which will benefit families, businesses, and the economy. By investing in these reforms, the government is ensuring that families can make the most of their paid parental leave, have more flexibility, and a more secure retirement. This is a positive move that will have a lasting impact on the lives of parents and their children.
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