2024-25 Federal Budget Summary

On 14 May 2024, Treasurer Jim Chalmers delivered the 2024-25 Federal Budget, which largely focuses on measures the Government says will help Australians earn more and keep more of what they earn, and build a stronger and more resilient economy.

Below is a summary of the Budget announcements relevant to super. It’s important to note the announced measures are still to be legislated.

Snapshot of key measures

Announced measures for members

Super to be paid on Government-funded Paid Parental Leave
Help to track down unpaid super
Freezing social security deeming rates for another year
Strengthening the ATO’s fraud detection

For employers

More funding for super contribution data governance
Support for measures to assist in payday super implementation

You can find out more about the superannuation and other Budget announcements by visiting budget.gov.au.

Announced measures for members

Enhancing the Government-funded paid parental leave scheme

The Government announced it will pay superannuation on Government-funded Paid Parental Leave (PPL) for parents of babies born or adopted on or after 1 July 2025. Eligible parents would receive an additional payment based on the Superannuation Guarantee (i.e. 12% of their PPL payments) as a contribution to their superannuation fund annually from 1 July 2026.

The Government says this measure will benefit 180,000 Australian families by reducing the impact of career breaks to care for young children on superannuation balances and support parents to achieve a more dignified retirement. The initiative builds on the Government's previously announced investment to expand the PPL scheme by two weeks each year from 1 July 2024 to reach a total of 26 weeks by 1 July 2026.

ART welcomes the Government's commitment to pay superannuation on Commonwealth PPL as an important measure to help improve retirement outcomes for women and close the gender gap in superannuation.

The Government also announced it will provide additional support for small business employers in administering PPL.

Help to pursue unpaid superannuation entitlements

From 1 July 2024, the Government will make changes to the Fair Entitlements Guarantee Recovery Program to help it pursue unpaid superannuation entitlements owed by employers in liquidation or bankruptcy.

Freezing social security deeming rates

The Government will freeze social security deeming rates at their current levels for a further 12 months until 30 June 2025 with the aim of easing cost of living pressures for Australians who receive the age pension or other income payments and also rely on income from deemed financial investments, as well as their payments.

Strengthening the ATO’s fraud detection

The Government will provide $187 million over four years from 1 July 2024 to the ATO to strengthen its ability to detect, prevent and mitigate fraud against the tax and superannuation systems.

Announced measures for employers

Enhanced governance over super contribution data between employers and super funds

The Government will provide additional funding to support the SuperStream Gateway Network Governance Body, an industry-owned not for profit organisation, to uplift governance of the system that transmits data on super contributions between employers and super funds.

Support for employers to implement payday super

Payday superannuation was announced in the 2023-24 Budget. Subject to legislation being passed, from 1 July 2026, employers will be required to pay their employees’ super at the same time as they pay their employees’ salary and wages.

In the 2024-25 Budget, the Government announced increased funding for the Productivity, Education and Training Fund to support employers with a range of activities, including to implement policy changes such as the introduction of payday superannuation.

Read ART Chief Economist Brian Parker’s economic analysis of the Budget.

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