The Federal Treasurer, Dr Jim Chalmers, handed down the 2024-25 Federal Budget at 7:30 pm (AEST) on 14 May 2024.

The full Budget papers are available at www.budget.gov.au and the Treasury ministers’ media releases are available at ministers.treasury.gov.au.

The superannuation highlights are set out below.

Super to be paid on government-funded paid parental leave

Superannuation will be paid on government-funded paid parental leave (PPL) for parents of babies born or adopted on or after 1 July 2025. Eligible parents will receive an additional payment based on the superannuation guarantee (12% of their PPL payments), as a contribution to their superannuation fund.

Payments will be made annually to individuals’ superannuation funds from 1 July 2026.

Source: Budget Paper No 2, p 166; Budget Factsheet — Broadening opportunity and advancing equality.

Recovery of unpaid super from liquidated or bankrupt employers

The Fair Entitlements Guarantee Recovery Program will be recalibrated to pursue unpaid superannuation entitlements owed by employers in liquidation or bankruptcy from 1 July 2024.

Source: Budget Paper No 2, p 96.

This article contains information regarding taxation and legislative change, which is based on policy announcements that are yet to be passed as legislation and may be subject to future change. Any advice included in this article is general and has been prepared without taking into account your objectives, financial situation or needs. As such, you should consider its appropriateness having regard to these factors before acting on it. Any tax information refers to current laws, is not based on your unique circumstances and should not be relied on as tax advice. Before you make any decision about whether to acquire a certain financial product, you should obtain and read the relevant product disclosure statement.