On Thursday, 7 March 2024, the government announced, alongside the release of the Working for Women strategy, that from 1 July 2025 it will pay superannuation on government funded Parental Leave Pay which will be administered by the ATO. This measure is now law.
Under the new law eligible parents with babies born or adopted on or after 1 July 2025 will receive an additional contribution, based on the Superannuation Guarantee (12% of their Parental Leave Pay) to their nominated superannuation fund. The lump sum superannuation contribution, including an interest component, will be paid following the end of each financial year in which government funded Parental Leave Pay was paid.
The ATO will make the first payments from July 2026.
Eligible parents will continue to apply for Parental Leave Pay through Services Australia who are responsible for assessing eligibility for the payment and superannuation contribution.
For more information, see:
- Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Act 2024External Link
- Parental Leave Pay for a child born or adopted from 1 July 2023 - Services AustraliaExternal Link
- Changes if you get family payments - Parental Leave Pay for a child born or adopted from 1 July 2023 - Services AustraliaExternal Link
- Paid Parental Leave scheme for employers - Services AustraliaExternal Link
- Super boost for new parentsExternal Link