Hello Chasers,
Well, here is some good news for Australian parents!
A significant change is coming to parental leave benefits. The government has recently introduced a new law that will see superannuation contributions made on top of paid parental leave pay. This means parents will have a stronger financial foundation for the future.
What Does This Mean for You as an Employer?
As a small business employer, you’ll need to understand how this new law impacts your business.Â
Here’s a breakdown of the key points:
- Eligibility: The new superannuation contribution, known as the Paid Parental Leave Superannuation Contribution (PPLSC), will apply to parents who receive paid parental leave pay (PLP) for children born on or after July 1, 2025.
- Calculation: The PPLSC will be calculated as a percentage of the total PLP paid in the preceding income year, plus a nominal interest component. The percentage will align with the superannuation guarantee rate at the time the PLP is paid.
- Payment: The PPLSC will be paid directly into the parent’s superannuation fund.
- Administrative Ease: Employers won’t need to take any additional steps to claim the PPLSC. It will be automatically included in the PLP payment.
Why is This Change Important?
This new law is a significant step towards improving financial security for parents. By boosting superannuation balances, it helps to mitigate the long-term financial impact of taking time off work to care for children.
Preparing for the Change
To ensure compliance with this new law, employers should:
- Stay Updated: Keep an eye on updates from the Australian Taxation Office (ATO) and other relevant government agencies.
- Review Payroll Systems: Ensure your payroll system is updated to accommodate the new superannuation contribution.
- Seek Professional Advice: If you have any questions or concerns, consult with your accountant or HR advisor.
By understanding and implementing this new law, you can help your employees build a stronger financial future.
Please contact our Team on 03-55612643 if you require any further information.
Have a great day!
Read more of our daily blogs for valuable insights and stay up-to-date with the latest industry news – click here to access the full article on our blog page.
