Australian government introduces bill to boost parents' superannuation on top of paid parental leave, aiming to close the retirement savings gap between men and women.

The Australian government introduced a bill aimed at closing the retirement savings gap between men and women by providing new parents with 12% superannuation on top of government-funded paid parental leave starting from July 2025. This initiative, expected to benefit around 180,000 families annually, will ensure parents using government-funded leave enjoy the same benefits as those receiving employer-funded superannuation. The move is intended to combat the "motherhood penalty," which causes women, who often retire with 25% less superannuation than men, to face a 55% drop in earnings during their first five years of parenthood.

August 21, 2024
112 Articles