More information: super on paid parental leave (May 2024 Tax Update)

Relevant For:

People who wish to understand government changes impacting parental leave and retirement savings.

Key Points:

• From 1 July 2025, Australian government to pay super on paid parental leave (PPL), enhancing retirement outcomes for women.
• Decision follows union and advocacy group pressures, highlighting gender disparities in retirement savings.
• Current PPL allows 20 weeks at $176.55/day; set to increase to 26 weeks by 2026.
• Additional leave aimed at promoting shared parental responsibilities, with reserved "use it or lose it" weeks for each parent.
• Changes also aim to improve child care and parenting payment systems, contributing to a more secure retirement for women.