Your superannuation is about to drastically change—here's what every Australian must know!
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A significant update to superannuation is on the horizon, affecting millions of Australians.
This upcoming change is set to impact how people plan and manage their retirement savings, with many advised to stay informed about the new rules.
As these adjustments roll out, it’s important to understand how they could influence your financial future.
In a move that's set to reshape the landscape of parental leave and retirement planning, new legislation is being introduced to federal parliament that could see new mums and dads earning superannuation while on government-funded paid parental leave.
A law to grant parents 12 per cent superannuation during paid parental leave is set to be introduced in federal parliament on Thursday, August 15.
If approved, the scheme will take effect from July 2025, potentially assisting 180,000 families who utilise government-funded leave after the birth of a child.
Although the laws would cover both new fathers and mothers, maternity leave typically lasts longer, and Social Services Minister Amanda Rishworth highlighted that the laws are primarily designed to support women.
‘Not only is our government providing immediate support to Australians with a new baby, but we're boosting their retirement savings,’ she stated.
‘One of the best ways to boost productivity and workforce participation is to provide more choice and more support for families, and more opportunity for women.’
This is a game-changer, especially for women, who statistically end up with about one-third less in their super balances than men by the time they retire.
Although some employers offering paid parental leave already include superannuation contributions, the proposed legislation would guarantee that parents on government-funded leave receive the same benefit.
This development aligns with the planned expansion of Commonwealth-paid parental leave to six months by 2026.
‘We know paid parental leave is vital to the health and wellbeing of families, parents and children. Not only is it good for family, but it's also good for our economy,’ Ms Rishworth said.
‘Improving paid parental leave is a critical reform.’
As significant changes to superannuation are set to impact millions of Australians, it’s crucial to stay informed about other financial adjustments that have taken effect this financial year.
From tweaks to tax thresholds to updates in government benefits, understanding these shifts will help you better prepare your finances and navigate the evolving economic landscape.
What do you think about the proposed changes to superannuation for new parents? Do you believe this will make a significant difference in the long-term financial security for families? Share your thoughts and experiences with us in the comments below.
This upcoming change is set to impact how people plan and manage their retirement savings, with many advised to stay informed about the new rules.
As these adjustments roll out, it’s important to understand how they could influence your financial future.
In a move that's set to reshape the landscape of parental leave and retirement planning, new legislation is being introduced to federal parliament that could see new mums and dads earning superannuation while on government-funded paid parental leave.
A law to grant parents 12 per cent superannuation during paid parental leave is set to be introduced in federal parliament on Thursday, August 15.
If approved, the scheme will take effect from July 2025, potentially assisting 180,000 families who utilise government-funded leave after the birth of a child.
New laws will be introduced allowing parents to earn superannuation during government-funded paid parental leave, starting July 2025. Credit: Shutterstock
Although the laws would cover both new fathers and mothers, maternity leave typically lasts longer, and Social Services Minister Amanda Rishworth highlighted that the laws are primarily designed to support women.
‘Not only is our government providing immediate support to Australians with a new baby, but we're boosting their retirement savings,’ she stated.
‘One of the best ways to boost productivity and workforce participation is to provide more choice and more support for families, and more opportunity for women.’
This is a game-changer, especially for women, who statistically end up with about one-third less in their super balances than men by the time they retire.
Although some employers offering paid parental leave already include superannuation contributions, the proposed legislation would guarantee that parents on government-funded leave receive the same benefit.
This development aligns with the planned expansion of Commonwealth-paid parental leave to six months by 2026.
‘We know paid parental leave is vital to the health and wellbeing of families, parents and children. Not only is it good for family, but it's also good for our economy,’ Ms Rishworth said.
‘Improving paid parental leave is a critical reform.’
As significant changes to superannuation are set to impact millions of Australians, it’s crucial to stay informed about other financial adjustments that have taken effect this financial year.
From tweaks to tax thresholds to updates in government benefits, understanding these shifts will help you better prepare your finances and navigate the evolving economic landscape.
