Paid Parental Leave Superannuation Contribution (PPLSC)
From 1 July 2025, superannuation is payable on government funded Parental Leave Pay. These contributions are administered by the ATO and paid directly into your superannuation fund.
06 Mar 2026
What this means for you
If you care for a child born or adopted on or after 1 July 2025, you’ll receive an additional super contribution based on the Superannuation Guarantee (SG) rate (12% of your Parental Leave Pay). This contribution includes an interest component and will be paid as a lump sum after the end of the financial year in which you received Parental Leave Pay.
The ATO will begin making these payments from 1 July 2026.
How it works
- Services Australia confirms how much Parental Leave Pay you’ve received.
- Your Paid Parental Leave Super Contribution (PPLSC) is then calculated based on the SG rate.
- In most cases, the contribution will be paid into the same super fund your employer contributions currently go to.
- If you share Parental Leave Pay with another person, each of you will receive a contribution based on your share of the payment.
- Your PPLSC is not counted as income for social security, family assistance, or child support purposes.
If Services Australia adjusts your Parental Leave Pay, your PPLSC may need to be updated.
Tax and contribution caps
- Your PPLSC will be taxed at 15% by your super fund.
- It will count towards your concessional (before-tax) contributions cap.
- The ATO will advise you if you exceed your cap.
- If you believe you may exceed a cap due to special circumstances, you can apply for an excess contributions determination.
Why this matters
This change helps boost the retirement savings of parents and supports closing the gender gap in superannuation.
Eligible parents may receive a superannuation contribution of more than $3,000 when the Paid Parental Leave scheme reaches its full length of 26 weeks and they take the full 26 week entitlement.*
*For children born or adopted between 1 July 2025 and 30 June 2026, the Australian Government’s Paid Parental Leave scheme provides up to 24 weeks (110 days) of payment. The entitlement increases to 26 weeks from 1 July 2026.
Who assesses eligibility?
You’ll continue to apply for Parental Leave Pay through Services Australia. Services Australia confirms with the ATO how much parental leave has been paid, and the ATO is responsible for payment of the super contribution.