The Australian Government announced on the 7th of March 2024, that from 1 July 2025, it will pay superannuation on the government-funded Parental Leave Pay that will be administered by the ATO. This measure is now law.
The lump sum superannuation contribution will be paid following the end of each financial year in which government-funded Parental Leave Pay was paid.
The ATO will make the first payments from July 2026.
From 1 July 2026
The updated Government-funded Paid Parental Leave (PPL) will increase to 26 weeks (130 payable days)
This leave is paid at the minimum wage rate (e.g. from 1 July 2026 = Parental Leave Pay is $1004.90 per week, or $26.44 per hour, before tax. This is based on the weekly rate of the national minimum wage, which usually changes each financial year.
When an employee makes a claim, Services Australia will assess the claim and advise you of the outcome. You will need to either accept or request a review of the decision. If you accept, you will be asked to provide or confirm your details and set up Payment Destination information.
For more information refer to: