New moms and dads will soon be able to get a pension on top of government-funded paid parental leave.
Legislation will be introduced in federal parliament on Thursday that would allow fathers to earn 12 percent of their pension while using paid parental leave.
If approved, the scheme will come into effect from July 2025 and is expected to help 180,000 families who use government-funded leave after the birth of a child.
Social Services Minister Amanda Rishworth said the laws would help achieve gender equality.
“Not only is our government providing immediate support to Australians with a new baby, we are also boosting their retirement savings,” she said.
‘One of the best ways to increase productivity and labour force participation is to offer more choice and more support to families and more opportunities to women.’
It is estimated that women end up with a third less in their pension balance than men when they reach retirement age.
While some employers with paid parental leave plans already pay pensions on top of that, the laws would ensure that parents who use government-funded leave can get the same benefit.
New mums and dads will soon be able to receive a pension on top of government-funded paid parental leave, under new laws being introduced by Anthony Albanese’s government.
While some employers with paid parental leave plans already pay for retirement benefits on top of that, the laws would ensure that parents who use government-funded leave have the same benefit.
This comes as the Commonwealth’s paid parental leave is set to be extended to six months in 2026.
“We know that paid parental leave is vital to the health and well-being of families, parents and children. It’s not only good for the family, it’s good for our economy,” said Ms Rishworth.
“Improving paid parental leave is a key reform.”
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