Latest news with #parentalleave
Yahoo
16 hours ago
- Business
- Yahoo
$3,000 superannuation boost coming for Aussies from July 1: 'Huge difference'
Superannuation will soon be paid on the government's parental leave payments. The change means Aussies could receive nearly $3,000 extra into their retirement fund, which could make a 'huge difference' over time. Parents with babies born or adopted after July 1 will receive the additional superannuation payment when they receive paid parental leave. This will be 12 per cent of their payment, in line with the super guarantee rate increase. UniSuper senior private client adviser Melinda Brown told Yahoo Finance the changes also coincided with paid parental leave increasing from 22 to 24 weeks. It will increase again on July 1, 2026, up to 26 weeks. RELATED Devastating superannuation tax reality hitting 50,000 Australians in growing trend Centrelink age pension changes coming into effect from July 1 $1,000 ATO school fees tax deduction that Aussies don't realise they can claim 'At the minimum wage and with the super contribution of 12 per cent, that's nearly $3,000 that's going to be put into their superannuation,' she said. 'Compounding over a number of years, it is going to make a huge difference. Especially as we know that women generally retire with 25 per cent less in superannuation than men.' Paid parental leave is based on the minimum wage, which will increase by 3.5 per cent to $24.95 per hour, or $948 per week, on July 1. The move is expected to improve the retirement balances of around 180,000 Australian families each year. In Australia, WGEA data found 68 per cent of employers offer access to paid parental leave on top of the government scheme. The majority (87 per cent) who offer paid parental leave also pay superannuation for parents while they are on leave. For workers who don't, Brown said it can be worth asking your employer if they will pay super during your leave. 'The more an employer is asked this question, the more they may decide to think about actually paying super on parental leave,' she said. If you are eligible for parental leave pay, the Australian Taxation Office (ATO) will pay a super contribution directly to your super fund. This is called the Paid Parental Leave Superannuation Contribution (PPLSC). If you share your parental leave, each parent will get the super contribution based on how many days they use. It will be paid automatically after the relevant financial year ends, starting from July, 2026. Brown said it was important for parents to take proactive steps to prepare their super before they go on parental leave. That includes checking your insurance, as inactive super accounts may lose cover unless you elect to keep it. 'That can happen if it's been over 16 months since you've had a contribution,' Brown told Yahoo Finance. 'So you can actually ask your super fund. There's usually a form where you can just elect to ensure that you do keep that cover.' It can also be worth considering voluntary contributions before or during your leave to help grow your super, or spouse contributions or splitting. 'At the end of each financial year, you can split the super contributions received from the employer so your concessional contributions, you can split to your spouse if you wish,' Brown said. "It's up to 85 per cent of the concessional contributions. So they do allow for the 15 per cent contribution tax, and it's also limited to the concessional cap.' If you have multiple super accounts, it could also be worth consolidating them to save on fees. You can get this through myGov. It may also be worth considering your investment mix and getting financial advice tailored to your circumstances. 'A lot of super funds these days do provide limited advice at no extra cost to you. So it can be a really good time to have a chat to your super fund about what services they can help you with,' Brown pour accéder à votre portefeuille
Daily Mail
2 days ago
- Business
- Daily Mail
Pay increase for millions of Australians: Here's what to expect
Millions of Australians will receive a cash boost when minimum wage, superannuation and paid parental leave changes come into effect next month. From July 1, the minimum wage will be increased 3.5 per cent, from $24.10 per hour to $24.95 per hour, affecting more than 2.6million Aussies. The new rate will total $948 per week, based on a 38-hour work week, after the Fair Work Commission decision handed down earlier this month. Nearly 10million Aussies will also get an automatic boost to their retirement savings next month, as the superannuation guarantee rate rises from 11.5 per cent to 12 per cent. It means employers will pay, on average, an extra $317 into employees' super accounts each year. In total, that could mean an extra $132,000 in super for young Australians by the time they retire. The federal government will also start paying super on its paid parental leave scheme, with the change applying to parents who receive parental leave pay on or after July 1. The scheme is also expanding, with the amount of government-funded leave increasing from 20 weeks to 22 weeks on July 1 - part of the Labor government's plan to expand it to 26 weeks by July next year. Also from July 1, Services Australia payments will be indexed (adjusted in line with inflation) by 2.4 per cent. Paid Parental Leave, Family Tax Benefit A and B, the Newborn Supplement, and Multiple Birth Allowance will all receive a modest increase, affecting about 2.4million Australians. For example, a family receiving Family Tax Benefit A will pocket an extra $5 a fortnight. Parents with triplets will receive an extra $120 a year, while first-time parents of a newborn child will pocket an additional $48 over 13 weeks. Minister for Social Services Tanya Plibersek described indexation as a 'crucial way to help families when cost of living rises'. 'Millions of recipients of social security payments will see more money in their bank account,' Plibersek said.
Daily Mail
2 days ago
- Business
- Daily Mail
Millions of Aussies are set to get a cash boost within days as Albanese government goes ahead with huge changes
Millions of Australians will receive a cash boost when minimum wage, superannuation and paid parental leave changes come into effect next month. From July 1, the minimum wage will be increased 3.5 per cent, from $24.10 per hour to $24.95 per hour, affecting more than 2.6million Aussies. The new rate will total $948 per week, based on a 38-hour work week, after the Fair Work Commission decision handed down earlier this month. Nearly 10million Aussies will also get an automatic boost to their Super next month, as the superannuation guarantee rate rises from 11.5 per cent to 12 per cent. It means employers will pay, on average, an extra $317 into employees' Super accounts each year. In total, that could mean an extra $132,000 in Super for young Australians by the time they retire. The federal government will also start paying Super on its paid parental leave scheme, with the change applying to parents who receive parental leave pay on or after July 1. The scheme is also expanding, with the amount of government-funded leave increasing from 20 weeks to 22 weeks on July 1 - part of the Labor government's plan to expand it to 26 weeks by July next year. Also from July 1, Services Australia payments will be indexed (adjusted in line with inflation) by 2.4 per cent. Paid Parental Leave, Family Tax Benefit A and B, the Newborn Supplement, and Multiple Birth Allowance will all receive a modest increase, affecting about 2.4million Australians. For example, a family receiving Family Tax Benefit A will pocket an extra $5 a fortnight. Parents with triplets will receive an extra $120 a year, while first-time parents of a newborn child will pocket an additional $48 over 13 weeks. Minister for Social Services Tanya Plibersek described indexation as a 'crucial way to help families when cost of living rises'. 'Millions of recipients of social security payments will see more money in their bank account,' Plibersek said. However, asset limits and income thresholds will also increase by 2.4 per cent. That means some Aussies will become ineligible for JobSeeker Payment, Youth Allowance, Austudy, ABSTUDY Living Allowance, Parenting Payment, Special Benefit and Parenting Payment Single. The July indexation will not impact youth and student payments, which are indexed each year in January.
Forbes
3 days ago
- Business
- Forbes
Companies Need To Modernize Their Parental Leave Policies
Cynthia McEwen is the Vice President of People at women's health benefits company Progyny. According to a 2023 U.S. Office of the Surgeon General Advisory, nearly 50% of parents said they experienced overwhelming stress most days. But when it comes to employer-provided support, such as parental leave policies, many modern workplaces aren't offering what these caregivers need. Traditional leave policies often fail to account for the wide range of family structures and birth-related situations that exist today. Adaptable parental leave policies are more than a benefit. They're a strategic imperative for employers seeking to attract and retain talent. Let's examine these challenges and determine how employers can effectively address them, ensuring both employee support and a strong bottom line. Caregivers who adopt or foster children face unique challenges. For example, the legal processes involved in pursuing this path require extensive preparation, including up to six months of in-person appointments that often take place during business hours. International adoptions present additional challenges, like extensive travel and even more complex legal procedures, that don't always align with conventional leave timeframes. Meanwhile, foster placements often occur at a pace that makes it impractical to adhere to standard leave policies' advanced notice requirements. Companies can alleviate these challenges by offering more flexible parental leave policies that accommodate home studies and training, travel and last-minute placements in fostering households. Other useful support for easing the transition to parenthood are financial assistance for adoption-related expenses, access to counseling and parent-focused employee resource groups. Birth complications highlight the additional inadequacy of many parental leave policies. According to a 2023 study on maternal health, women are still at risk for developing serious health conditions after the standard postpartum period of six to eight weeks. These may result in extended recovery periods, frequent medical follow-ups and a need for additional caregiving support. Meanwhile, the non-birthing parent must be able to provide the necessary emotional and logistical support. However, many postpartum care services end after six weeks, leaving parents without the resources they need. Supporting employees through birth complications requires a multifaceted approach. Return-to-work assistance, for example, helps reduce absenteeism, improve retention and mitigate long-term career setbacks. Offering extended leave or flexible work arrangements for employees whose partner is in postpartum recovery can help improve health outcomes for both parents and reduce stress during an already challenging time. Additionally, benefits must go beyond medical care. Mental health support, such as access to employee assistance programs, is particularly vital because psychological distress is a significant factor in maternal morbidity and mortality. By addressing both medical and emotional needs, employers can foster a more supportive environment for all parents affected by birth complications. In many cultures, childbirth is a communal experience where extended family plays a major role in postpartum care. Parental leave policies that fail to consider these cultural norms may force employees to choose between their professional responsibilities and deeply rooted traditions that support maternal and family well-being. By accommodating cultural birth-related practices—whether through adequate paid leave, flexible return-to-work options or childcare-related resources—companies can demonstrate respect for all parents. There are many family structures beyond the stereotypical two-parent household, such as single-parent households, blended families and families formed through surrogacy. But traditional parental leave policies rarely address these families' specific circumstances. For example, if a single parent is responsible for all caregiving duties, they may have greater time off needs than someone with a co-parent or a strong support system. Parents with blended families may need flexibility to accommodate legal arrangements, while families formed through surrogacy often need additional time for the emotional adjustments associated with welcoming a child. When companies provide parental leave, they should consider all paths to parenthood and different ways that families form. Policies that are paired with back-to-work transition support, new-parent educational resources and other tools help create a workplace culture where individuals can thrive both professionally and personally. As we continue to redefine what it means to "work well," let's ensure parental leave policies evolve to meet the needs of today's workforce. Anything less risks perpetuating inequities and forfeits the opportunity to build truly empowering workplaces. Forbes Human Resources Council is an invitation-only organization for HR executives across all industries. Do I qualify?
The Guardian
12-06-2025
- Politics
- The Guardian
‘I'm a dad first, an MP second': Labour's Luke Charters on breaking paternity leave taboo
When the Labour MP Luke Charters announced he was planning on taking at least four weeks paternity leave when his second son was born, he received dozens of messages of support and encouragement from constituents. But among the congratulations, one grumpy social media user had posted: 'I hope you have a good rest.' 'I snapped back and said that view is part of the problem,' he says, speaking from the House of Commons. 'Paternity leave – any parental leave – is not rest, it's essential caregiving at the start of a child's life.' This summer the 29-year-old will become the first male MP to take extended parental leave and employ a locum, his office manager, to cover his constituency work while he is away. 'Being an MP is a privilege. It's one of the busiest jobs in Britain, but I've got to be a dad first and an MP second,' says the Labour member for York Outer. 'I think it's really important to kind of model that behaviour and sort of lead by example.' Charters is a part of a new group of MPs agitating for better leave for fathers, not only because it is good for them and their kids, but also because it is a way of steering young men away from 'toxic influencers' and the lure of Reform. With only two statutory weeks of leave – paid at £184.03 a week – the UK has one of the worst paternity leave offerings in Europe; recent research found one in three UK fathers took no paternity leave after the birth of their child. But after many years of female MPs and campaign groups arguing that better parental leave for fathers would improve gender equality and boost productivity in the UK, the paternity leave push has gained traction in recent months. On Monday the cross-party women and equalities select committee called for new fathers to be given six weeks off work, arguing that the UK's statutory parental leave system was 'one of the worst in the developed world' and had 'fundamental flaws'. Two days later, after a spending review from Rachel Reeves that did not improve the deal for fathers, the Dad Shift campaign group organised a dad strike in which men and their babies gathered outside the Department for Business and Trade in London. Meanwhile, MPs wrote to parliament's spending watchdog to urge it to increase the amount of paid paternity leave given to its staffers, reported Politics Home. The Independent Parliamentary Standards Authority (Ipsa) replied with the news that a change was in the works, the Guardian has learned: qualifying new fathers would now get four weeks of paid leave, rather than two. Ipsa was 'continually looking at ways to support a family-friendly parliament', said its chair, Richard Lloyd. Alex Latham-Reynolds, who works for the MP and paternity leave campaigner Shaun Davies, will likely be the first father to get the enhanced offer when he takes time off in September to welcome his new son. 'From our perspective, and definitely from my perspective, it's a big win,' he says. 'I think it shows there's a shift in perspective happening, that the importance of dads being around is being recognised.' The battle for better parental leave for MPs and staff in Westminster has been protracted. Stella Creasy, the MP for Walthamstow, became the first to use a pilot providing full locum cover for her first child in 2020. A year later the government pushed through a bill giving ministers access to six months of maternity leave on full pay. Earlier this year, the secretary of state for Scotland, Ian Murray, became the first cabinet minister to take full paternity leave, following the birth of his second child. Things are changing, says Charters. 'This is a much younger parliament, you see a lot of toddlers and babies now, probably more than you have done in the past.' He hopes by taking extended paternity leave – and talking about it – he can encourage others to join the push for change. 'My message is: we're fighting for you to have enhanced paternity leave regardless of how busy your job is. If you can, do spend those important first few weeks with your son or daughter, building those lifelong memories. Nothing is more important.'
