Starting 1 July 2025, new parents receiving government paid parental leave (PPL) will begin receiving superannuation contributions alongside their PPL payments. The government announced this change in early 2024, and the necessary legislation has now been passed.
Under this new arrangement, eligible parents with children born or adopted on or after 1 July 2025 will receive a paid parental leave superannuation contribution (PPLSC) as a lump sum into their superannuation fund after each financial year. There is no need to submit an additional claim— the ATO will handle the calculation based on PPL payment data from Services Australia, and the super contribution will be automatically added to their nominated fund.
The PPL scheme itself will expand over the coming years. From 1 July 2024, families will receive an extra two weeks of PPL, for a total of 22 weeks. This will further increase to 24 weeks in 2025 and to 26 weeks in 2026. By 2026, four weeks will be set aside specifically for each parent to encourage shared caregiving, with a “use it or lose it” approach. Additionally, from 1 July 2025, families will be able to use up to four weeks of PPL simultaneously, doubling the current allowance of two weeks.
These changes aim to support new parents in balancing work, caregiving, and financial well-being during this important life stage.