The Labor government’s 12 percent superannuation payment for new parents is wrestling with another hurdle as the opposition moved new amendments.
In August, Albanese government introduced the bill to offer superannuation on top of paid parental leave, saying it would help reduce the gender gap in retirement savings.
Senator Anne Ruston, manager of opposition business in the Senate, pushed amendments to offer more flexibility for how families used their superannuation, proposing two options.
The first would allow families to receive an additional two weeks of government-funded paid parental leave, increasing the total entitlement from 26 to 28 weeks once the scheme is fully implemented.
The second would allow families to take the superannuation payment as a one-off lump sum.
“This flexibility recognises the financial pressures that come with the birth of a child,” Senator Ruston said. “Offering these options gives families the ability to manage their finances in a way that suits them best during this crucial time.”
Ruston emphasised the importance of giving Australians more control over their lives.
“One of the most important things we can offer Australians, regardless of the policy, is giving them the flexibility and control to make decisions about their lives, rather than the government dictating the smallest details.”
In response, Labor Senator Tim Ayres, assistant minister for trade, opposed the amendments.
Opposition Says Timeline Too Long
Ruston also demanded clarity on various aspects of the bill including its implementation date, costs, and the payment process.She raised concerns about the proposed date to start from July 2025, and sought clarification on whether both parents would be able to access paid parental leave under the new policy.
Ayres explained that payments would be divided based on how much leave each partner takes. He also defended the timeline, stating that significant changes to systems at Services Australia and the Australian Taxation Office (ATO) are required before implementation can begin.
However, Ruston criticised the government’s timeline, arguing that the nine-month preparation period was unnecessarily long.
“Nine months seems like a very long time for something as simple as paying superannuation on an existing payment,” she said, adding that the delay reflected poorly on Services Australia.
Labor’s Ayres acknowledged that the process was complex, explaining that the government needed to consider two key issues.
First, the government must account for the three-month pre-birth claim period. This means that parents expecting a birth or adoption around July 1, 2025, will be able to submit their claims starting in late March, which shortens the nine-month window for implementation.
Questions About How Scheme Would be Managed
Senator Ruston further pressed for details on how the superannuation payments would be managed. She specifically inquired about how the ATO would process the payments and what additional funding or staffing would be allocated to the ATO and Services Australia to accommodate the changes.In response, Ayres clarified that superannuation payments would not be made during the paid parental leave period but would instead be processed at the end of the financial year.
He explained that the decision to make a single payment at the end of the year was based on efficiency. However, he reassured that the legislation includes provisions for interest calculations to ensure recipients are not disadvantaged by the delayed payment.
Greens Back Super
Meanwhile, the proposed bill found support from other senators including the Greens who called it a positive step towards pay parity.Senator Barbara Pocock said advocates had pushed hard for the change.
“The Greens welcome Labor’s decision to finally get on board with the Greens policy to pay superannuation on paid parental leave.”
