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Super to be paid with Paid Parental Leave

Article published on: 07-03-2024

The Government has announced it will pay superannuation guarantee on Paid Parental Leave (PPL) from 1 July 2025.

Paying super on PPL will help establish parental leave as a workplace entitlement, similar to annual or sick leave, and reduce the impact of time out of work on retirement savings. It aims to provide Australian women with a more dignified and secure retirement.

Further detail of this important measure, including cost, will be released in the May 2024 Federal Budget.

This measure adds to Labor’s recent expansion of the PPL. The legislation, which is currently with the Senate, will give families additional PPL from 1 July 2024. If legislated, families will have access to an extra two weeks of leave (22 weeks in total), which will increase to 24 weeks from July 2025 and 26 weeks from July 2026. The family income test will also increase to $350,000.

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