Industry bodies have welcomed the government’s commitment to include superannuation on paid parental leave (PPL) entitlements from 1 July 2025 announced as part of the 2024 federal budget, stating the measure will significantly improve retirement outcomes for Australian women.
The Super Members Council (SMC) welcomed the move to provide $1.1 billion over four years to fund the scheme expected to benefit over 180,000 families annually.
“The historic announcement to pay super on parental leave takes Australia another major stride closer to ending the financial motherhood penalty many women face when they have children,” SMC chief executive Misha Schubert noted.
“It’s a watershed reform that will powerfully strengthen retirement savings for Australian mums and help to narrow the gender gap at retirement.”
The Association of Superannuation Funds of Australia (ASFA) stated the measure is expected to boost retirement savings for women by $5100 on average when combined with legislated payday super and increases in the duration of paid parental leave.
“Future generations of Australian women stand to add thousands to their super balances thanks to this change in policy. This is a crucial and long-overdue step in improving their financial security in retirement,” ASFA chief executive Mary Delahunty said.
The Financial Services Council (FSC) commended the government for its intentions to bridge the gender gap in retirement savings between Australian men and women.
“We congratulate the government on moving forward with its paid parental leave scheme which would increase the financial security and wellbeing of Australian women, who retire with 25 per cent less superannuation than men,” FSC chief executive Blake Briggs said.
Chartered Accountants Australia and New Zealand (CAANZ) also lent its support to policy.
“The government’s decision to provide $1.1 billion to pay super on government funded Parental Leave over four years, then $623 million every year after, is an important to step to an equitable superannuation system,” CAANZ superannuation and financial services leader Tony Negline said.
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