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Super on paid parental leave

Updated on 28 October 2024

3 minute read

Super on paid parental leave will help new parents look after their future while they look after their family.

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From 1 July 2025, the Australian Government will pay super on its parental leave pay to support eligible working parents to take time off work after a birth or adoption.

The super boost means eligible parents of babies born or adopted on or after 1 July 2025 will receive an extra 12% of their government-funded Paid Parental Leave as a contribution to their super fund.

The super payment for eligible parents will go into their super accounts from 1 July 2026.

After 1 July 2026, the Government will pay the super at the beginning of the financial year based your eligibility.

“We’re committed to supporting all our members to reach their retirement goals and this decision will not only make superannuation fairer, but improve economic security for women's super and retirement,”...


How much parental leave pay the government provides

The Australian Government’s paid parental leave is separate to any paid parental leave your employer might offer.

The payment amount is based on the national minimum wage. The payment is means tested and there are other eligibility requirements.

Eligible families can get up to:

  • 22 weeks payment for a child, with 2 weeks reserved for your partner if you have one.

That will go up to 24 weeks from 1 July 2025, plus the super payment will start. The amount reserved for those with a partner, will also rise to 3 and then 4 weeks starting from 2025.

The Australian Government is further extending the scheme to 26 weeks by 2026, which pushes up government-paid parental leave to 6 months.


Who's eligible for parental leave pay

These are the Government’s rules to be eligible for parental leave pay.

For a child born or adopted before 1 July 2023, you must:
  • be the primary carer for the child

  • have met an income test

  • not be working during your Paid Parental Leave period except for allowable reasons

  • have met a work test

  • have registered or applied to register your child’s birth with your state or territory birth registry, if they’re a newborn

  • There are also some extra criteria you’ll need to meet.

For a child born or adopted from 1 July 2023, you must:
  • be caring for the child

  • have met an income test

  • not be working on your Parental Leave Pay days, except for allowable reasons

  • have met a work test

  • meet the residency rules

  • have registered or applied to register your child’s birth with your state or territory birth registry, if they’re a newborn

  • There are also some extra criteria you’ll need to meet.


What the super boost on paid parental leave means for parents

The Australian Government says its super boost and extension of government-funded paid parental leave will:

  • reduce the impact of career breaks on the super balances of parents who take time out of paid work to care for young children
  • help close the super gap
  • support parents to achieve a more dignified retirement
  • help normalise taking time off work to care for family as a workplace entitlement, just like annual and sick leave.

Thinking of taking parental leave?

If you’re thinking about taking parental leave, don’t forget your super. Here’s 3 things you can do:

1

Check your work-related entitlements

Read your employment contract or talk to your HR department to see if you’ll get super contributions on parental leave that your employer pays.

2

Check your insurance cover

If you have Income Protection cover in your super account, this may be affected depending on the type of parental leave you take and how long you’re away from work. Learn more in our Insurance Guide.

3

Keep your details up to date

If you’re taking time off work (or whenever things change), make sure the personal details on your account, such as your contact phone number and email, are all up to date. The easiest way to check your details and make changes is in Member Online.

Australian Retirement Trust Chief Member Experience Officer, Simonne Burnett, said the change was a major milestone towards closing inequality in the retirement income system.

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“We’re committed to supporting all our members to reach their retirement goals and this decision will not only make superannuation fairer, but improve economic security for women's super and retirement,” Ms Burnett said.

“Every dollar towards superannuation counts. Women invest so much of their lives into raising their families and the same needs to be provided in return to safeguard their financial security later in life.”

Grow your super

Want to know some easy ways to grow your super? Watch our Super Insider podcast episode ‘Five easy ways to grow your super’ where our experts explain some simple things you can do today to maximise your super contributions.


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