Paid Parental Leave Superannuation Contribution (PPLSC) 007-23030219

On 7 March 2024, as part of the launch of Working for Women: A Strategy for Gender Equality, the Government announced that it will introduce a superannuation guarantee (SG) equivalent payment on Government funded Parental Leave Pay (PPL). This was included in the 2024 Federal Budget.

This change adds a superannuation contribution on PPL for customers that have a child born or entering care on or after 1 July 2025.

This is called the Paid Parental Leave Superannuation Contribution (PPLSC).

The measure aligns with the Government’s objective to increase support for women’s economic participation. As PPL is mainly taken by women, adding an SG equivalent payment would help:

• reduce the retirement savings gaps between men and women, and
• improve the fairness of Australia’s retirement income system

Eligible PPLSC customers are those with a child who has a date of birth or entry into care date on or after 1 July 2025 and in the financial year:

• have been paid PPL for 1 day or more, or
• their employer was paid a PPL funding amount equalling 1 day or more

Where PPL is shared between two or more people, each customer is entitled to the PPLSC proportional to the amount of PPL they received.

Customers do not need to submit a separate claim for the PPLSC. Eligibility is determined based on the customer’s entitlement and payability of PPL. The Australia Taxation Office (ATO) will pay the contribution for each eligible PPLSC customer regardless of whether Services Australia or their employer is delivering their PPL.

Services Australia has a data transfer arrangement with the ATO to provide them with customer payment information to enable calculation of the PPLSC and apply any interest components.

PPL information is transferred to the ATO:

• annually after the end of the financial year, and
• weekly where there is a retrospective change to a customer’s PPL entitlement

Each data transfer is based on customer information held on the system at that point in time. The use of Tax File Number (TFN), customer name, and date of birth is critical in the matching process. Correct matching ensures the PPLSC can be paid without delay. For this reason, customers need to make sure their details are up to date with both the ATO and the agency.

A mismatch process will be established before the first data exchange occurring after the 2025-2026 financial year has ended.

If a customer receiving PPL has died, the PPLSC is paid based on the amount of PPL received up until the date of death.

If a customer contacts about PPLSC, provide the following information:

• If their child’s date of birth or entry into care is on or after 1 July 2025, the ATO will pay a superannuation contribution on their Parental Leave Pay
• The contribution is calculated and paid by the ATO for each financial year they receive Parental Leave Pay
• The amount payable is based on the superannuation guarantee rate
• The contribution will be paid automatically into their superannuation fund after the end of the relevant financial year, commencing from July 2026
• To ensure there are no delays in payment of the PPLSC, they need to make sure their personal details are up-to-date and consistent with Services Australia and the ATO

The SG is the minimum amount of superannuation employers must pay to their employees to avoid a super guarantee charge. It is based on the employee’s base earnings and the rate progressively increases. See the Resources page for links to the ATO for more information.