Bill
Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024
passed, as at 2024-10-01. Social Services portfolio.
- Sponsor
- Not recorded
- Portfolio
- Social Services
Recorded stages
- introduced — 2024-08-22
- second reading — 2024-08-22
- second reading — 2024-09-10
- second reading — 2024-09-11
- second reading — 2024-09-12
- second reading — 2024-09-12
- third reading — 2024-09-12
- introduced — 2024-09-16
- second reading — 2024-09-16
- second reading — 2024-09-17
- second reading — 2024-09-18
- second reading — 2024-09-18
- committee — 2024-09-18
- third reading — 2024-09-19
- passed — 2024-09-19
- royal assent — 2024-10-01
Divisions
- The majority voted against an [amendment](https://www.aph.gov.au/Senators_and_Members/Parliamentarian?MPID=242515) to the usual second reading motion, which is "that the bill be read a second time" (parliamentary jargon for agreeing with the main idea of the bill). The amendment was introduced by Deakin MP [Michael Sukkar](https://theyvoteforyou.org.au/people/representatives/deakin/michael_sukkar) (Liberal). ### Amendment text > *That all words after "That" be omitted with a view to substituting the following words: "whilst not declining to give the bill a second reading, the House:* > > *(1) notes:* > >> *(a) the Coalition's strong record supporting government funded paid parental leave in Australia;* >> >> *(b) at the 2010 and 2013 federal elections, the Coalition's paid parental leave policy sought to deliver 26 weeks' paid parental leave based on actual wage and included superannuation; and* >> >> *(c) both Labor and the Greens opposed the Coalition's paid parental leave policy; and* > > *(2) calls on the Government to amend the Paid Parental Leave Act to provide choice to Australian families by giving eligible PPL recipients the option of:* > >> *(a) receiving superannuation on the government funded paid parental leave payment; or* >> >> *(b) receiving 26 weeks of paid parental leave from 1 July 2025, increasing to 28 weeks from 1 July 2026; or* >> >> *(c) receiving a one-off payment equal to the value of the superannuation amount to help with costs associated with the arrival of a newborn or adopted child".* — 2024-09-12, House of Representatives: negative, ayes 54, noes 86
- The majority voted against amendments introduced by South Australian Senator [Anne Ruston](https://theyvoteforyou.org.au/people/senate/sa/anne_ruston) (Liberal), which means they failed. Senator Ruston [explained that](https://www.openaustralia.org.au/senate/?id=2024-09-18.34.1): > *... the coalition's amendments provide that, if a family that is intending to take paid parental leave does not wish to take the superannuation payment in the way that has been prescribed by the government in this bill, instead they could have two additional choices in terms of how they might benefit from the legislation that is currently before us today. The first choice would be to allow them to take an extra two weeks of government funded paid parental leave, so, instead of 26 weeks, it would be 28 weeks once the scheme is at maturity. Alternatively, they could take the superannuation as a one-off lump sum payment.* ### Amendment text > *(1) Schedule 1, item 4, page 3 (before line 27), before the definition of base contribution, insert:* > >> *additional leave election means an election made under subsection 115AB(3).* > > *(2) Schedule 1, item 4, page 4 (after line 15), after the definition of nominal interest rate amount, insert:* > >> *one-off payment election means an election made under subsection 115AB(4).* > > *(3) Schedule 1, item 4, page 4 (after line 30), after the definition of SG charge percentage, insert:* > >> *superannuation election means an election made under subsection 115AB(2).* > > *(4) Schedule 1, item 5, page 6 (before line 1), before Chapter 3A, insert:* > >> *Chapter 3AA—Paid Parental Leave additional entitlements* >> >>> *Part 1—Elections in relation to entitlements* >>> >>> *Division 1—Guide to this Part* >>> >>>> *A person is eligible for additional entitlements for an income year if the Secretary pays one or more PPL funding amounts or instalments for the person during the income year.* >>>> >>>> *A person can elect to benefit from the PPL superannuation c — 2024-09-19, Senate: negative, ayes 25, noes 34
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2024-08-22.
The bill would provide a superannuation payment to people receiving Commonwealth-funded parental leave pay.
The Australian Taxation Office would calculate and pay the contribution using data from Services Australia, without requiring a separate claim from recipients.
Parents of children born on or after 1 July 2025 would be eligible for the payment, which includes a core amount based on the superannuation guarantee rate plus a nominal interest component.
- Establishes a new superannuation contribution entitlement within the Paid Parental Leave Scheme.
- Provides for the calculation and payment of the contribution.
- Creates mechanisms for the Commissioner of Taxation to correct over- and under-payments.
- Allows recipients to seek review of decisions made by the Commissioner.
- Gives the Commissioner new compliance and enforcement powers.
- Clarifies that employees may take keeping in touch days during continuous unpaid parental leave regardless of prior flexible leave.
Parents who receive Parental Leave Pay for children born on or after 1 July 2025 would receive the contribution, and employees on unpaid parental leave would have clarified rights to keeping in touch days.
Sources
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