From 1 July 2025, the Australian Government pays superannuation contributions on top of the government-funded Paid Parental Leave (PPL) payment. This is a significant change — previously, recipients of government PPL received no super, creating a retirement savings gap for the parents (predominantly women) who took extended time off work to care for newborns or newly adopted children.
What Is the Paid Parental Leave Super Payment?
The government-funded PPL scheme pays eligible parents at the rate of the national minimum wage for up to 18 weeks (the government is progressively expanding this — check Services Australia for the current duration).
From 1 July 2025, the government also pays 12% SG-equivalent superannuation on top of the PPL payment — deposited directly into the recipient’s nominated super fund.
Example for FY2025–26:
- National minimum wage: approximately $915/week
- 18 weeks PPL payment: approximately $16,470 (before tax)
- 12% super contribution on $16,470: approximately $1,976 — paid into super
The super payment is made as a concessional contribution (pre-tax), meaning the fund pays 15% contributions tax on it — the same as any employer SG contribution.
Who Is Eligible?
Eligibility for government PPL (and the attached super payment) requires:
- You are the primary carer of a newborn or recently adopted child
- You meet the work test: worked for at least 10 of the 13 months before the birth/adoption, and at least 330 hours in that period
- Your adjusted taxable income is under $175,543 for FY2025–26 (indexed annually)
- You are an Australian resident
Both birth parents and adopting parents can be eligible, subject to meeting the work test and income test.
Eligibility criteria are subject to change — verify current rules at Services Australia.
How Is the Super Paid?
The super is paid by the Commonwealth government — not your employer — directly into your nominated super fund. The payment process:
- When you apply for PPL through Services Australia, you provide your super fund details
- Services Australia pays the PPL fortnightly
- The super contribution is paid to your fund at the end of the PPL period (or in tranches — check current arrangements with Services Australia)
- The contribution appears in your fund as a concessional (employer) contribution
Nominating your fund: Ensure your super fund details are up to date in your Services Australia account via myGov. If your account details are incorrect, the payment may be delayed.
Impact on the Gender Retirement Gap
The addition of super to PPL is a direct response to the documented gender super gap in Australia. Women retire with approximately 25–30% less super than men on average, in part because time taken off work for caring (childbirth, raising children, aged care) results in:
- Fewer years of SG contributions
- Lower average incomes through career interruptions
- Accumulation of lower total super balances over a working lifetime
The PPL super payment — while modest for a single child ($1,976 at minimum wage) — is an incremental improvement and is expected to be more significant as the PPL entitlement period is extended.
Employer-Funded Parental Leave — Separate Rules
Many Australian employers (particularly larger companies) provide employer-funded parental leave in addition to (or instead of) government PPL. The rules for super on employer-funded parental leave are different and depend on the employer’s legal obligations and enterprise agreement or contract.
The general position:
- Super is payable on paid parental leave provided by an employer as part of an employee’s ordinary terms and conditions of employment — it forms part of ordinary time earnings (OTE)
- If employer parental leave is paid at the employee’s regular salary rate, SG contributions are payable
- If an employer’s parental leave policy is structured differently (e.g. a lump-sum payment not related to ordinary hours), the SG treatment may differ
Practical advice: Check your enterprise agreement or employment contract to understand whether your employer pays super on their funded parental leave. If you are unsure, ask your HR department or payroll team.
Super During Unpaid Parental Leave
If you take unpaid parental leave (beyond the government or employer-paid period), your employer is not required to pay SG contributions during this unpaid period. This is a separate contributions gap from the PPL issue.
If you take extended unpaid leave, strategies to consider (general information only):
- Making personal non-concessional contributions when you return to work if you have financial capacity
- Using carry-forward concessional cap amounts (if your total super balance is under $500,000) to catch up on missed concessional contributions in later years
- Reviewing your super balance against age benchmarks periodically to track any gap
Frequently Asked Questions
I’m currently on parental leave — do I get the super payment automatically? If you are receiving government PPL from 1 July 2025, the super payment should be included. Ensure your super fund details are correctly registered with Services Australia. If you began PPL before 1 July 2025, check whether the super component applies to your payments — transitional arrangements may apply.
My employer gives me extra parental leave — do they pay super on that too? Whether an employer pays SG on employer-funded parental leave depends on whether it counts as OTE and the terms of the employment arrangement. Check your employer’s parental leave policy or speak to HR. From a legal perspective, paid leave that is part of ordinary employment terms generally attracts SG.
Will the super payment affect my contribution caps? Yes — the super payment is a concessional contribution and counts toward your $30,000 annual concessional cap. For most people, this $1,976 will be well within the cap alongside normal employer SG contributions. However, those who also salary sacrifice or make large personal deductible contributions should check the combined total.
Does the super payment affect my Age Pension or Centrelink entitlements? The super contribution is paid into your super account, not to you personally. While it increases your total super balance (which may affect means tests at Age Pension age), it does not affect current Centrelink payments like Family Tax Benefit or Jobseeker.
See also: Super and Life Events. For further information on government PPL, see Services Australia Paid Parental Leave. For advice tailored to your situation, speak with a licensed financial adviser through MoneySmart.