New Legislation: Government to Pay Superannuation on Parental Leave Pay
Last updated: 15 October 2024
On Thursday, 7 March 2024, the government announced the introduction of a new measure alongside the release of the Working for Women strategy. Beginning on 1 July 2025, the government will pay superannuation guarantee equivalent payments on government-funded Parental Leave Pay. This new law will be administered by the Australian Taxation Office (ATO).
Under this legislation, eligible parents with babies born or adopted on or after 1 July 2025 will receive an additional superannuation contribution based on the Superannuation Guarantee rate of 12% of their Parental Leave Pay. The lump sum superannuation contribution, which will include an interest component, will be paid following the end of each financial year in which government-funded Parental Leave Pay was received.
The ATO is set to make the first payments in July 2026.
Eligible parents can continue to apply for Parental Leave Pay through Services Australia, which is responsible for assessing both their eligibility for the payment and the superannuation contribution.
For more information, see:
Parental Leave Pay for a child born or adopted from 1 July 2023 - Services Australia
About the Paid Parental Leave scheme - Paid Parental Leave scheme for employers - Services Australia
Super boost for new parents | Ministers' media centre
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au.