Super is now paid on Parental Leave Pay

What this means for you

If you care for a child born or adopted on or after 1 July 2025, you may 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 is generally 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.

Where your PPLSC will be paid

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

1. A nominated eligible super account (if provided).
2. If no nomination is made, an eligible account selected by the ATO based on factors such as contribution history and account activity.
3. If no eligible account exists, the contribution may be held by the ATO in a Superannuation Holding Account until a valid account is available.
4. In limited circumstances, different rules may apply (for example, where a member is deceased and payment is made to their legal personal representative).
   
    

How it works

• Services Australia confirms how much Parental Leave Pay you’ve received.
• The ATO calculates your PPLSC based on the SG rate.
• The contribution is paid into an eligible super account.

If Parental Leave Pay is shared, each person receives a contribution based on their share.

Tax and contribution caps

• PPLSC is taxed at 15% when received by a super fund.
• It counts towards your concessional (before-tax) contributions cap.
• The ATO will notify you if you exceed your cap.

What to consider

• CSS members may need to take action if they want their contribution paid to a specific account.
• Nominating an eligible account with the ATO can help ensure the contribution is directed as intended.
• Consider your individual circumstances before making decisions.
  
   

Why this matters

This change is intended to support retirement outcomes for parents and help address the gender gap in superannuation.

Who assesses eligibility

You’ll continue to apply for Parental Leave Pay through Services Australia.

Services Australia confirms payments with the ATO,  which calculates and pays the super contribution.

Important information for CSS members

CSC cannot accept Paid Parental Leave Superannuation Contributions (PPLSC) into CSS accounts. If you are a CSS member, the ATO will pay your PPLSC into an eligible super account under its allocation rules.

If you want to keep your super with CSC, you may choose to:

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

This can help ensure your contribution is paid to your preferred account. Before making any decisions, consider the PDS and TMD to determine whether this product is right for you. You can find the PDS and TMD on our website CSC.gov.au

Fees and account considerations

Fees apply to a PSSap ancillary account. If you open an account solely to receive PPLSC, consider how fees may affect your account balance.

If your balance is less than $6,000 at the end of the financial year, certain administration and investment fees are capped at 3% of the account balance.

Full details are available in the Product Disclosure Statement (PDS).

Inactive and low balance accounts

Inactive or low balance accounts may be transferred to the ATO unless you provide written notice to CSC requesting otherwise.

An account is generally considered inactive and low balance if:

• no contributions have been received for 16 months
• the balance is below $6,000
• a condition of release has not been met
• no insurance is held on the account
• no recent changes have been made by you.

Further information is available on the ATO website.

Important information for DFRDB members

If you are a DFRDB member, any PPLSC will be paid into the ancillary part of your account provided by MilitarySuper. You do not need to take action for this to occur.