Federal Budget 2024-25 Super announcements

What this means for your super and retirement 

Overview 

The most notable is the Government will pay 12% super on Commonwealth Paid Parental Leave, and additional funding for small businesses to administer the payment.  

Key measures in relation to superannuation include:  

• Super to be paid on Commonwealth Paid Parental Leave 

• Deeming rates frozen 

• Support to administer Paid Parental leave 

• Additional support to start to prepare businesses for the move to payday super and small business initiatives to support cashflow and reduce payment times 

• Boost to recovering unpaid super in insolvencies to return $44.4 million to member accounts 

For a full breakdown of the budget, visit www.budget.gov.au  

For super members/retirees

Super 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.  

• Payments will be made annually to individuals’ super funds from 1 July 2026. This will reduce the impact of career breaks to care for young children on superannuation balances and support parents to achieve a more dignified retirement. 

Start date: 1 July 2025 

Deeming rates frozen

• 12-month extension to 30 June 2025 of the current freeze in deeming rates, which will assist retirees. 

• Will assist part pensioners with bank deposits, investments and also super pension income streams which are captured under the deeming rules. The measures will allow retirees to benefit from increases in interest rates and returns without reductions in their age pension.   

• The deeming rate has been frozen for the last two years, with the top rate unchanged at 2.25 per cent. 

Extended to: 30 June 2025 

For employers

Support to administer Paid Parental leave

• $10.0 million over two years from 2024–25 to provide additional support for small business employers in administering Paid Parental Leave. 

Payday super and productivity measures 

• $60.0 million over four years from 2024–25 to increase the Productivity, Education and Training Fund to support practical activities by employer and worker representatives to boost workplace productivity and engage in tripartite cooperation. This will also support workplaces to implement policy changes, such as the introduction of payday superannuation. 

Unpaid super in insolvencies  

• The Government will also recalibrate the Fair Entitlements Guarantee Recovery Program to pursue unpaid superannuation entitlements owed by employers in liquidation or bankruptcy from 1 July 2024.