Your superannuation is about to drastically change—here's what every Australian must know!

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.


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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.
Key Takeaways
  • New laws are being introduced to the federal parliament that will allow parents to earn superannuation while on government-funded paid parental leave, starting from July 2025.
  • It is expected that the scheme will benefit 180,000 families who take government-funded leave following the birth of a child.
  • Social Services Minister Amanda Rishworth stated the laws are intended particularly to benefit women, who generally end up with significantly less superannuation than men by retirement age.
  • The Commonwealth paid parental leave will also be expanded to six months by 2026, with a focus on the health and well-being of families, parents, and children, as well as economic benefits.
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.
 
  • Wow
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No doubt the Opposition opposed the move as they did on the Super increase and the capping at $3m.
 
Government funded they mean public servants and it's to be funded by the taxpayers. Just like the bonus given to public servants, they are the only ones benefiting from taxpayer funded benefits. I can't see how this will benefit women as it's limited and if the cost is put on employers why would they hire women due to cost. That will mean that you and I will again pay for it out of our pockets in form of price increases. This is nothing more than a circle of debt to the taxpayers. Government don't have money and we are the most over taxed country in the world.
 
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Since this change to super has no bearing to any of us seniors on SDC why bother putting this story on here. Most of us had families before maternity leave of any sort was around, and probably before super even started, except maybe for government jobs. But hey those of us who still work so we can try to be able to afford to live will be helping to fund this super for these people. Bring back the days where having kids was the responsibility of the parents and not the whole society having to pay I say.
 
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What a bonus to the businesses that have to pay.

Government funded they mean public servants and it's to be funded by the taxpayers. Just like the bonus given to public servants, they are the only ones benefiting from taxpayer funded benefits. I can't see how this will benefit women as it's limited and if the cost is put on employers why would they hire women due to cost. That will mean that you and I will again pay for it out of our pockets in form of price increases. This is nothing more than a circle of debt to the taxpayers. Government don't have money and we are the most over taxed country in the world.
Just saying that doesn't make it so, Aust doesn't even make it into the top 30 highest taxed.
 
Talking abt superannuation, for those of us living in NSW, there is a very interesting & disturbing article abt super when U fall off the perch.

The particular article is in the financial sectn of Sundays edition of the Sunday Telegraph, dated the 25 August, under the heading, "FIVE FACTORS THAT CAN REALLY RUIN AN INHERITANCE". To note, Section 2, TAX, where super is mentioned & wot could happen.

I, for one, will be speaking to my super companies financial advisor, a free service, to find out how it will affect my account & subsequently my offspring. Same with my wife to her offspring, 2nd marriage for both of us. It's a little scary to say the least.

It is a MUST read. I'm keeping the particular article for reference.

Hope this has been of some help & good luck to all who maybe interested to seek same.
 

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