CHANGES to Paid Parental Leave began July 1, giving around 180,000 families a year more flexibility and support at one of the most important times in their lives.
From Tuesday, the amount of Paid Parental Leave available to families increased to 24 weeks, giving parents an extra two weeks to spend with their newest family member.
The amount of Paid Parental Leave parents can take off at the same time will also increase from two weeks to four weeks and will continue to expand to 26 weeks by July 1 next year.
In a huge step to help close the gender gap in retirement incomes, superannuation will now also be paid on government Paid Parental Leave.
The 12 per cent contribution, based on the increase in the Superannuation Guarantee that also starts from July 1, will be paid as a contribution to their nominated superannuation fund.
Parents will also benefit from an increase in the weekly payment rate of Paid Parental Leave, increasing from $915.80 to $948.10 in line with the increase to the National Minimum Wage.
This means a total increase of $775.20 over the 24-week entitlement.
Minister for Social Services, Tanya Plibersek said working parents across Australia are eagerly awaiting the arrival of the newest additions to their families and to Paid Parental Leave reforms.
“Investing in more generous and flexible Paid Parental Leave is a no-brainer,” she said.
“For the first time, superannuation will be paid on Paid Parental Leave because Australian women told us they were worried about poverty in retirement and were sick of being penalised for parenting.”
Assistant Minister for Social Services, Ged Kearney said the changes recognise that raising a child is not a break from work – it is work.
“Increasing Paid Parental Leave to 24 weeks and paying super on that leave sends a powerful message: caring for family should never come at the expense of your financial security later in life,” he said.
“It’s a step toward a more equal, compassionate Australia.”
