Parental leave super boost

Super on parental leave will help parents look after their future while they look after their family.

On Tuesday 14 May the Government handed down the Federal Budget, with a dual focus on inflation-fighting and future-making.  

Addressing both immediate cost-of-living pressures and investment in industry for future growth the Federal Treasurer Jim Chalmers described the budget as “a responsible budget that helps people under pressure today – and invests in the promise and potential of the more prosperous future we can make together”. 

Read our summary of Budget announcements

One initiative that affects superannuation directly was the announcement that super contributions will be paid on the federal government-funded Parental Leave Pay. The government has put aside $1.1 billion over 4 years to fund this initiative, which it estimates will benefit 180,000 families each year.

What is Parental Leave Pay 

Separate to any paid parental leave that your employer might offer, the Parental Leave Pay offered by the federal government provides a payment for up to 18 weeks (up to 20 weeks from 1 July 2024). The payment amount is based on the national minimum wage. 

The payment is means tested and there are other eligibility requirements. Services Australia provides a summary of conditions, payment amounts and how to claim.

The Federal Budget announcement

As part of the Federal Budget, the government has announced that from 1 July 2025, superannuation contributions of 12% will be paid on the Parental Leave Pay. This payment will apply to parents of babies born or adopted on or after 1 July 2025.  

The 12% amount is based on the Superannuation Guarantee (SG) rate that will apply from 1 July 2025. The payment will be made annually as a contribution to individuals’ super funds from 1 July 2026. 

Budget Overview

Thinking of taking parental leave?

If you’re thinking about taking parental leave, some pre-planning now can help you in the future. Here are three superannuation-related things to add to your checklist: 

1. Check your work-related entitlements.Read your employment contract or talk to your HR department to see if you’ll get super contributions on parental leave that your employer pays. 
2. Check your insurance cover. If you have Income Protection cover in your QSuper account, this may be affected depending on the type of parental leave you take and how long you’re away from work. Download our Parental leave factsheet for more information, or read our Insurance Guide.
3. Keep your details up to date. If you’re taking time off work (or whenever things change), make sure the personal details on your account – such as your contact phone number and email - are all up to date. The easiest way to check your details and make changes is in Member Online.

What’s changing in super from 1 July 2024

Keep on top of your super by understanding key changes 

Learn more