From 1 July 2025, a positive change is coming for new parents: the Australian Government will begin paying superannuation on government-funded Parental Leave Pay.
Known as the Paid Parental Leave Super Contribution (PPLSC), this measure helps close the super gap for parents, particularly women, who often experience reduced super balances after taking time out of the workforce.
How It Will Work
If you receive Parental Leave Pay from Services Australia for a child born or adopted on or after 1 July 2025, you’ll be eligible for this new super contribution.
Here’s what to expect:
- The contribution will be calculated based on the Superannuation Guarantee (SG) rate, with an added interest component.
- It will be paid as a lump sum into your super fund after the end of the financial year in which you received Parental Leave Pay.
- The first contributions will be paid in the 2026–27 financial year.
If you and your partner share the Parental Leave Pay, the super contribution will be split proportionately between both super funds.
What You Need to Do
To ensure everything runs smoothly, make sure your personal details (such as name and address) match across the ATO, Services Australia, and your super fund. Additionally, continue to apply for Parental Leave Pay through Services Australia as usual.
This is a great step toward building better retirement outcomes for new parents.
If you have an SMSF, it’s essential to ensure your fund details are up to date and ready to receive contributions when the time comes.
If you’re planning a family or want to understand how this change might affect your long-term planning, we’re here to help. Let’s chat.
