Super on Paid Parental Leave: Starts 1 July 2025
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Primary tax-year context: Current Australian tax settings
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From 1 July 2025, superannuation is now paid on government-funded Parental Leave Pay for eligible parents. This is a meaningful structural change that addresses a longstanding gap in the superannuation system: carers — predominantly women — who take time out of paid work to raise children have historically missed out on SG contributions during that period, contributing to a persistent super gender gap.
What changed from 1 July 2025
Parents of children born or adopted on or after 1 July 2025 who receive government-funded Parental Leave Pay are entitled to a super contribution on top of their PPL payments. The contribution rate is 12% — matching the standard Superannuation Guarantee rate from 1 July 2025.
The government, not the employer, funds and pays this super contribution. It is separate from any employer-paid parental leave arrangement you may also receive.
Who qualifies
You qualify for super on PPL if you:
- Receive government-funded Parental Leave Pay from Services Australia, and
- Are the primary carer of a child born or adopted on or after 1 July 2025
You do not need to apply separately for the super component. If you are already eligible for and receiving Parental Leave Pay, the super contribution is automatic. Services Australia administers the PPL payment, and the ATO pays the super directly to your nominated fund.
How much is paid
The government PPL scheme provides up to 22 weeks of Parental Leave Pay at the national minimum wage rate. From 1 July 2025, the national minimum wage is approximately $915.90 per week.
At 12% SG on 22 weeks of payments:
22 weeks × $915.90 × 12% ≈ $2,418 in super
This is the approximate maximum super contribution for a parent who takes the full 22 weeks at minimum wage rates. Parents receiving PPL at higher amounts (if the scheme is updated to a higher base) would receive proportionally more.
For context, a 22-week gap in super contributions for someone earning a median full-time salary might otherwise represent a loss of $4,000–$6,000 in employer SG during leave. The government PPL super only partially fills that gap, but it is a meaningful step — particularly for lower-income and casual workers for whom government PPL is the primary income source during parental leave.
When the super is paid
Unlike regular employer SG which is paid quarterly (and from 1 July 2026, per pay cycle), the super on PPL is paid after the end of the financial year in which you received Parental Leave Pay.
The ATO makes the first payments from July 2026, covering PPL received during the 2025-26 financial year. Subsequent payments follow the same annual cadence.
This timing means the super does not land in your fund during your parental leave period — it arrives roughly 12 months after you start your leave. The delayed timing is a feature of the government administration model rather than employer payroll.
How this differs from employer-paid parental leave
Many employers offer their own paid parental leave schemes on top of the government scheme. Employer-funded parental leave typically already includes super contributions under standard employment agreements, either because the employer treats it as ordinary time earnings or because their enterprise agreement or policy requires it.
The new government PPL super measure specifically fills the gap for parents who do not receive employer-funded super during leave — a group that includes casual workers, contractors, self-employed parents, and employees at businesses without generous parental leave policies.
If you receive both government PPL and employer-funded parental leave, you will receive super from both sources, subject to how your employer’s scheme is structured.
The super gender gap context
Treasury research has consistently found that women retire with significantly less super than men. A key driver is career interruptions — particularly parental leave — during which employer SG contributions stop. The cumulative effect of multiple periods of leave over a working life compounds significantly through missed investment earnings.
Adding super to government PPL directly targets this mechanism. The $2,418 estimate above understates the long-term impact: that money invested at age 28–35 grows substantially by retirement age.
What to check
- Confirm your super fund details linked to your Parental Leave Pay claim with Services Australia are correct and current. If your fund details change, update them with Services Australia so the ATO can direct the payment correctly.
- Expect the payment to appear in your fund after the financial year ends — not during your leave period. The first payments arrive from July 2026.
- Check your super fund statements or myGov account in mid-2026 if you received PPL in the 2025-26 financial year.
- If you have taken leave and are unsure whether your child’s birth date qualifies (on or after 1 July 2025), check with Services Australia.