Unions have welcomed the Albanese Government’s introduction of legislation to deliver its promised boost to the Paid Parental Leave Scheme into Federal Parliament.
The legislation is set to ensure that superannuation will be paid on all Government Paid Parental Leave from 1 July 2025.
The move seeks to acknowledge the importance of time away from the workforce for caring duties and reduce the impact of paid parental leave on parents’ retirement incomes.
Australian Council of Trade Unions President, Michele O’Neil a step towards achieving gender equality.
“Women make up the majority of primary caregivers in this country, leading to what has been referred to as ‘the motherhood penalty’, where they face greater economic insecurity because of time out of the workforce to care for children,” Ms O’Neil said.
“The effect of lower income compounds over time, increasing the gap between men and women’s superannuation balances at retirement with women retiring with around 25 per cent less super than men.
“Paying super on Paid Parental Leave is an important step to reducing the gendered gaps in retirement savings.”
The payment of Paid Parental Leave was announced in March alongside the launch of the National Strategy for Gender Equality.