In March 2024, the government announced its intention to commence paying superannuation on government paid parental leave (PPL) payments from 1 July 2025. The related law has now been passed.
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New parents eligible for the PPL scheme with children born or adopted on or after 1 July 2025 will receive the paid parental leave superannuation contribution (PPLSC). This will be paid as a lump sum superannuation payment following the end of each financial year when the parents received PPL.
Recipients of PPL won’t be required to make a claim –the ATO will calculate the PPLSC based on information from Services Australia about their payments, and the contribution will be automatically deposited into their nominated superannuation fund.
The PPL scheme has also increased entitlement as follows:
From 1 July 2024 – eligible up to 22 weeks.
From 1 July 2025 – eligible up to 24 weeks,
From 1 July 2026 – eligible up to 26 weeks.
By 2026, a total of four weeks will be reserved for each parent on a “use it or lose it” basis, to encourage the sharing of care responsibilities. In addition, the number of PPL weeks a family can utilise at the same time increases to four weeks from 1 July 2025, up from the current two weeks.
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