Federal government to pay superannuation on paid parental leave
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An historic change to the Commonwealth’s paid parental leave scheme will be announced today, with superannuation to be paid on the 20 weeks of government funded leave from next year.

If legislation passes parliament, the change will kick in for those parents with babies born after July 1, 2025, who will receive 12 per cent superannuation on top of their government-funded parental leave.

About 180,000 families are expected to benefit.

About 180,000 parents are expected to benefit from the planned changes in superannuation. (Photo: AFR) (Nine)

Minister for Women Katy Gallagher will announce the policy proposal in a major speech today at the National Press Club in Canberra ahead of tomorrow’s International Women’s Day.

The reforms are part of the Albanese government’s shake-up of paid parental leave, which currently leaves women out of pocket when they retire because they don’t receive superannuation when they take time off to have children.

It means women can be left up to 25 per cent worse off than men when they retire.

The government hopes the reform will help close the gender superannuation gap and enable women to have more balance between caring and working. 

The Women’s Economic Equality Taskforce last year recommended paying super on government parental leave to help achieve this.

The price tag is not yet clear, but will be confirmed in the May budget.

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