Paid Parental Leave Superannuation Contribution (PPLSC)

What this means for you

If your employees access Australian Government-funded PLP for a child born or adopted on or after 1 July 2025, they may receive an additional super contribution.

• The contribution is based on the Superannuation Guarantee (SG) rate (12% of PLP).
• It includes an interest component.
• It is generally paid as a lump sum after the end of the relevant financial year.

These contributions are handled outside standard employer payroll processes.

Your role as an employer

No additional reporting, payroll processing, or SG obligations apply for PPLSC.

Services Australia administers Parental Leave Pay.

• The ATO calculates and pays the super contribution.
• Contributions are paid directly to the employee’s super account.

This means existing payroll and super processes remain unchanged.

How contributions are allocated

The ATO determines which super account receives the contribution using a legislated process:

1. A nominated eligible super account (if provided by the individual).
2. An eligible account selected by the ATO (based on contribution history and activity).
3. If no eligible account exists, the contribution may be held by the ATO until one is available.

In limited cases, different rules may apply, such as payments made to a legal personal representative.

Supporting your employees

Employees may benefit from understanding how these contributions work and where they are paid.

You can support employees by:

• directing them to official ATO or Services Australia information
• encouraging them to review their super arrangements
• reminding them they can nominate a preferred super account with the ATO

Providing clear guidance can help employees make informed decisions about their retirement savings.

Scheme-specific considerations

CSS members

CSC cannot accept PPLSC into CSS accounts.

Employees who are CSS members may wish to:

• open a PSSap ancillary account, and
• nominate that account with the ATO

This can help ensure their contribution is directed to a preferred account .

Note: PSSap ancillary accounts incur ongoing fees. If an account is opened solely to receive Paid Parental Leave Superannuation Contributions (PPLSC), members should consider whether these fees may reduce the balance over time, particularly if the account isn’t used for regular contributions.

DFRDB members

CSC cannot accept PPLSC into DFRDB accounts.

Any eligible contributions will be automatically paid into a MilitarySuper ancillary account in the member’s name. No action is required.

Why this matters

This measure is designed to improve retirement outcomes, particularly for parents who take time out of the workforce, and to help address gaps in superannuation balances over time.