2024-25 Federal Budget announcements that impact superannuation

16 May 2024

Paid super on Government Paid Parental Leave

The federal government will pay superannuation on Government-funded Paid Parental Leave (PPL) for parents of babies born or adopted on or after 1 July 2025 in a $1.1 billion budget initiative designed to boost women’s super-balances and close the gender retirement gap.

Treasurer Jim Chalmers, in his budget speech to Parliament on Tuesday night, said the decision would make the superannuation system fairer, “reduce the gender pay gap and benefit 180,000 families a year’’.

“We are very proud that this Budget extends superannuation to parents on paid leave,’’ Dr Chalmers said.

Brighter Super welcomes the decision to pay super on parental leave as an important step forward to help improve retirement outcomes for women.
 
About two thirds of all recipients of the parental leave scheme are women. Women typically retire with about 25% less in superannuation than men^.

The paid parental leave decision was the major change to superannuation in the 2024 budget after the government announced substantial changes last year.

Freeze on social security deeming rates

The budget also froze the Social Security deeming rate at current levels until 30 June 2025 to support age pensioners and other Australians reliant on income support to manage cost of living pressures.

Increasing fraud detection

Other initiatives in the budget on superannuation included a $187 million anti-fraud measure for the Australian Taxation Office (ATO) to strengthen its ability to detect, prevent and mitigate fraud against the tax and superannuation systems. 

Support for employers to implement payday super

The budget also included $60 million over four years to increase the Productivity, Education and Training Fund in part to support workplaces to implement payday superannuation (where super is paid on payday rather than up to quarterly) which is due to take effect from 1 July 2026. 

Pursuing unpaid superannuation entitlements

A crackdown on unpaid superannuation entitlements owed by employers in liquidation or bankruptcy through the Fair Entitlements Guarantee Recovery Program which is expected to result in $44.4 million in additional payments to employees super accounts over four years and $96.9 million over the medium-term. 

Changes to superannuation in July

Decisions already taken on superannuation prior to the budget are due to come into effect from 1 July 2024.

We’re here to help

Brighter Super’s team of qualified professionals can provide advice and guidance on your superannuation and your future.

Our financial advice service can help you plan for a better financial future*. Members can receive limited advice on a single issue related to superannuation, at no additional cost. More comprehensive financial advice is also available, and fees will vary depending on the type and complexity of advice.

We also offer our members Super Health Check appointments over the phone or video call, at no additional cost. We look at your superannuation account, discuss different ways to grow it, and check that you are on track for a comfortable retirement.

Call us on 1800 444 396 to discuss the type of appointment that would suit you best.