Super on paid parental leave

A landmark step towards closing the gender super gap In a significant move towards closing the gender superannuation gap, the Australian Parliament has passed legislation to pay super on Commonwealth Paid Parental Leave (PPL). This landmark decision, which passed through the Senate without opposition, will come into effect on 1 July 2025.

WHAT DOES THIS MEAN FOR YOU?

This new law will be a game–changer for many REI Super members, particularly women. The latest Workplace Gender Equality research showed that women's superannuation balances at retirement are 23.4% lower than those of men¹. A large component of this disparity is due to career breaks for raising children, during which no super contributions are made. The new legislation aims to address this imbalance by ensuring that super is paid on PPL, providing a much–needed boost to retirement savings during these crucial periods.

MAXIMISING YOUR SUPER DURING PARENTAL LEAVE

While the new law is a positive step forward, there are several other strategies you could employ to continue growing your super:

VOLUNTARY CONTRIbUTIONS:

Consider making voluntary contributions to your super account. Even small, regular contributions can make a significant difference over time.

SPOUSE CONTRIbUTIONS:

If your partner is working, they can make contributions to your super account. This not only boosts your super but may also provide tax benefits for your partner.

GOVERNMENT CO–CONTRIBUTIONS:

If you’re eligible, take advantage of the government co–contribution scheme. For every dollar you contribute, the government may contribute up to 50 cents, up to a maximum amount.

SALARY SACRIFICE:

If you’re planning your parental leave in advance, consider setting up a salary sacrifice arrangement with your employer. This allows you to contribute a portion of your pre–tax salary to your super, potentially reducing your taxable income.

SUPERANNUATION SPLITTING:

REI Super and some other funds allow you to split certain types of your pre–tax super contributions with your partner. This can be particularly beneficial if one partner is taking time off work.

For more information on these simple steps to grow your super, visit our website

LOOKING AHEAD

The introduction of super on PPL is another step towards achieving gender equality in retirement savings. At REI Super, we are committed to supporting our members through every stage of their lives, including parental leave. We encourage you to explore the various ways to maximise your super contributions and take full advantage of the new legislation once it comes into effect.

The information provided is general information only and is not health or medical advice. If you have a health or medical concern, please seek professional medical advice immediately. 360Health services are provided by a third party, Teladoc Health Pty Limited.