Starting 1 July 2025, new parents will receive superannuation payments on top of their paid parental leave (PPL). (Super payment on parental leave)
The Change
From 1 July 2025, eligible parents with babies born or adopted on or after this date will receive an extra 12% of their government-funded PPL as a superannuation contribution to their nominated super fund. This lump sum payment, including an interest component to account for delays, will be paid annually by the ATO after each financial year. Applications for PPL, and eligibility assessments, remain with Services Australia. (Super payment on parental leave)
Eligibility Criteria
Parents can currently access up to 22 weeks of government-funded PPL at minimum wage, which will increase to 24 weeks from 1 July 2025 and to 26 weeks by 1 July 2026. Eligibility requirements include:
- Having a newborn or recently adopted child.
- Meeting the income and work tests.
- Meeting residency rules.
- Registering or applying to register the birth.
Employer-Funded PPL
PPL is either government- or employer-funded, and some employees may be eligible for both. Although employers are not required to offer super on PPL, many do. This new law ensures that parents on government-funded PPL will now also benefit from super contributions.
Impact on Families
This change helps close the superannuation savings gap, especially for women, by providing super on government-funded PPL. It enhances parents’ financial security for retirement. (Super payment on parental leave)
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