Paying superannuation on PPL was a key recommendation of the Women's Economic Equality Taskforce and has long been campaigned for by unions and the women's movement.
The Government also stated that further detail of this "important measure to pay superannuation on PPL", including cost, will be released in the upcoming Federal Budget.
Minister for Women, Senator Katy Gallagher said "The data is clear — that when women take time out of the workforce to raise children it impacts their retirement incomes, with women retiring, on average, with about 25 per cent less super than men.
"Paying super on Government parental leave is an important investment to help close the super gap and make decisions about balancing care and work easier for women."
Note: A Bill has just been passed by the Senate (and is now awaiting assent) which will increase PPL by adding two weeks each year from 1 July 2024, so that the overall length of the scheme (currently 20 weeks) is increased to 26 weeks by July 2026. The Bill also introduces concurrent leave, so that, from July 2026, both parents can take four weeks (currently two weeks) of reserved leave at the same time.
To find out more about the bill, visit Parliament of Australia website.
Ref: Treasurer's media release, 7 March 2024, and the Paid Parental Leave Amendment (More Support for Working Families) Bill 2023