Major change coming to superannuation for millions of Australians: What you need to know
New mothers and fathers may soon be able to build up a pension on top of government-funded parental leave.
Bills will be introduced in federal parliament on Thursday that would allow parents to receive 12 percent of their pension while taking paid parental leave.
If passed, the scheme will come into effect in July 2025. It is expected to help 180,000 families using government-funded leave after the birth of a child.
Social Services Minister Amanda Rishworth said the laws would help promote gender equality.
“Not only is our government providing direct support to Australians with a newborn baby, we are also boosting their retirement savings,” she said.
‘One of the best ways to increase productivity and labor force participation is to provide families with more choice and support and women with more opportunities.’
It is estimated that by retirement age, women will have a third less pension than men.
While some employers with paid parental leave plans already pay additional pension benefits, the laws ensure that parents who take government-funded leave can also enjoy the same benefits.
New mothers and fathers will soon be able to build up a pension on top of government-funded paid parental leave, thanks to new laws being introduced by Anthony Albanese’s government.
While some employers with paid parental leave plans already pay extra into retirement, the laws would ensure that parents using government-funded leave would have the same benefit
This is because the Commonwealth’s paid parental leave will be extended to six months from 2026.
“We know that paid parental leave is essential for the health and well-being of families, parents and children. It’s not just good for families, it’s good for our economy,” Ms Rishworth said.
“Improving paid parental leave is a critical reform.”