The IEU welcomes the passage in the Senate today of the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024.
This legislation means superannuation will be paid on Commonwealth Paid Parental Leave payments from 1 July 2025. The number of weeks of paid leave will also increase from 22 to 24 weeks on the same date. On 1 July 2026, the scheme will increase to 26 weeks' paid leave.
"This is another step towards addressing the gender imbalance in retirement incomes – on average, women retire with 25 per cent less superannuation than men," said Independent Education Union of Australia NSW/ACT Branch Secretary Carol Matthews.
Of the IEU's 32,000 strong membership, 77 per cent are women. "This will make a meaningful difference to many of our members," Matthews said.
"The union movement has long campaigned for these changes and we congratulate the Labor government for taking this practical step to address the inequitable gender gap in super."
Parents who meet the eligibility tests will benefit from these changes. The IEU anticipates this will include nearly all members who have children after 1 July 2025.
In current negotiations for a new multi-enterprise agreement covering teachers and professional, administrative and operational staff in 245 independent schools, the IEU has claimed payment of super on paid parental leave for the primary carer.
When negotiations commence for new enterprise agreements covering teachers and support staff in nearly 600 Catholic systemic schools in NSW and the ACT in the next few months, the union will be calling for superannuation to be paid on parental leave entitlements.
ACTU President Michele O'Neil said today, "Paying super on Commonwealth Paid Parental Leave is a win for parents, a win for gender equality and a win for the economy."
