Super payments on paid parental leave set to become a reality under ‘historic reforms’

The federal government has announced it will pay superannuation to parents receiving payments on the government-funded paid parental leave scheme from July next year.

Eligible parents with a baby born or adopted on, or after, 1 July 2025 will receive 12% of the parental leave payment as a superannuation equivalent payment to their superannuation fund.

The move has been labelled as a “historic reform” by the Albanese government and forms part of Australia’s first national strategy to achieve gender equality.

Currently, parents receiving the Commonwealth-funded paid parental leave scheme do not get any superannuation payments. The move to introduce super payments will help close the ‘gender super gap’, which sees women being much less financially secure at retirement age than men.