The Commonwealth Government funds a Paid Parental Leave Scheme under which eligible employees who are the carer of a child born or adopted from 1 July 2024 can get up to 22 weeks’ parental leave pay, which is paid at the National Minimum Wage.

On 22 August 2024, the Government introduced the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024. The Bill will add superannuation to the Paid Parental Leave Scheme.

Persons receiving Commonwealth-funded parental leave pay will not need to make a separate claim to access their superannuation contribution. The Australian Taxation Office will calculate and disburse the superannuation contribution based on information it will receive from Services Australia about parental leave pay. The process for claiming Commonwealth-funded parental leave pay will not be altered.

The Bill also makes a minor amendment to the Fair Work Act 2009 (Cth) for ‘keeping in touch’ days.

This Member Advice provides a summary of the proposed changes.