The Australian government is introducing a new policy aimed at helping to close the gender gap in retirement income. From July 2025, parents on the government-funded paid parental leave scheme will start receiving superannuation on their leave payments.

Key points:

• Parents on the government-funded paid parental leave scheme will start receiving superannuation on their leave payments from July 2025.
• This is expected to benefit around 180,000 families each year, with women being the main beneficiaries as they take the majority of parental leave.
• The superannuation contribution will be 12% of the leave pay, which currently translates to roughly $106 per week.
• While the exact benefit is difficult to predict due to individual circumstances, estimates suggest it could range from several hundred dollars to thousands of dollars extra in retirement savings.
• Eligibility for the scheme is determined by taxable income, with thresholds set at $168,865 for individuals and $350,000 for two-parent families, targeting the policy to benefit a broad range of families.

Additional details:

• This change only applies to the government scheme, not employer-offered paid parental leave programs.
• The increased leave duration announced previously (up to 26 weeks by 2026) remains unaffected.
• The government has not provided specific figures on the expected financial benefit but acknowledges it will vary depending on individual circumstances.