Tim Ayres (NSW, Australian Labor Party, Assistant Minister for Trade) Share this | Hansard source

Before I sum up the debate, I table an addendum to the explanatory memorandum related to this bill, the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024. The addendum responds to matters raised by the Scrutiny of Bills Committee.

I thank senators who contributed to what I think has been an important debate on this bill. Paying superannuation on paid parental leave is an important step towards reducing the gender gap in retirement savings and supporting a dignified retirement for more Australians. The data is clear, and I think broadly accepted, that women retire with around 25 per cent less superannuation than men. What we're doing with this bill is a positive investment in the future of working women, who deserve to retire with the same financial security as men.

For babies born or adopted from 1 July 2025, this bill delivers all eligible parents with an additional 12 per cent of their paid parental leave as a contribution directly to their superannuation fund. This start date recognises that, once this bill passes, Services Australia and the Australian Taxation Office need time to implement the significant and complex system changes that are required to deliver this successfully. Around 180,000 families will benefit from the changes each year. Once the scheme reaches 26 weeks, in 2026, and based upon a superannuation guarantee rate of 12 per cent, the maximum amount a family will receive in superannuation contributions will be around $3,150.

This bill has been warmly welcomed by parents, employers, unions and economists. It has been praised as an important step to narrow the gender gap and boost women's financial security. I listened carefully to Senator O'Neill's contribution. She is right. I remember very well when the SDA—the Shop, Distributive and Allied Employees Association—the Australian Services Union and the Australian Nursing and Midwifery Federation joined together, I think under the leadership of our former colleague the late senator Linda White, to advocate for this very important set of changes. Those female-dominated unions are working with employers in their sectors to advance what is a significant reform in gender equity in superannuation terms.

From day one the Albanese government has been working hard to improve paid parental leave for working families. This bill is the third significant improvement Labor has made to paid parental leave during this term. Thanks to the investment secured by this government, families are already receiving extra support at the time of a birth, with greater flexibility, a higher income test and more weeks of paid leave. Now we want to boost their retirement income as well, to ensure that they earn more and keep more of what they earn. In short, this bill is good for families, good for women, good for business and good for the Australian economy.

Question agreed to.

Bill read a second time.