If you receive Parental Leave Pay from 1 July 2025
The ATO will pay superannuation on government funded Parental Leave Pay. This is known as the Paid Parental Leave Superannuation Contribution (PPLSC).
If you care for a child, born or adopted, from 1 July 2025 and you receive Parental Leave Pay from Services Australia in 2025–26 and onwards, we will pay a PPLSC.
Claims for Parental Leave Pay will continue through Services AustraliaExternal Link.
For more information on claiming Parental Leave Pay and the eligibility conditions that apply, see Services Australia Parental Leave PayExternal Link.
What you need to do
If you're eligible to receive government funded Parental Leave Pay check your:
- personal details are up to date and ensure your name and address match with both Services Australia and us
- super fund has your current details – ensuring your name and address in the super fund's records exactly match the details we have in our records.
If you have changed your name, you will need to update your name with the ATO and Services AustraliaExternal Link.
Paid Parental Leave Superannuation Contribution
Services Australia will let us know how much Parental Leave Pay you've been paid. The PPLSC will be based on the Superannuation Guarantee rate, it includes an interest component, and will be paid as a lump sum. In most circumstances, we'll pay your superannuation contribution to the fund your superannuation contributions are currently paid to.
We'll pay the contribution after the end of the financial year in which you received the Parental Leave Pay. We'll start paying superannuation contributions in the 2026–27 financial year and will let you know when we've paid the contribution to your fund.
If you share Parental Leave Pay with another person, a superannuation contribution will be paid to each person’s superannuation fund, based on their portion of the Parental Leave Pay.
Your PPLSC is not considered income for the purposes of social security, family assistance, and child support.
If Services Australia adjusts your Parental Leave Pay we may need to amend your entitlement to a PPLSC.
Concessional contributions cap
PPLSC will be taxed at 15% in the hands of the superannuation fund, and will count towards your concessional contributions cap.
We will let you know you if you exceed your concessional contributions.
If you believe your super contributions have, or will, exceed a contributions cap due to special circumstances you can apply for a excess contributions determination.
Employers
Payment of government funded Parental Leave Pay has not changed.
However, we will pay PPLSC directly to your employee’s superannuation fund after the relevant financial year has ended. Contributions will start in the 2026–27 financial year.
Employers are still able to make other super contributions.
For more information about providing Parental Leave Pay see Services Australia Providing Parental Leave PayExternal Link.