Welcoming a new child is a major life milestone, but time away from work can also mean time away from regular super contributions. From 1 July 2026, that is starting to change, with eligible parents now receiving a government-funded super contribution on their Paid Parental Leave (PPL).

The new Paid Parental Leave Superannuation Contribution (PPLSC) is designed to help reduce the long-term impact that taking time out of the workforce to care for a child can have on retirement savings.

How Does It Work?

If you receive government-funded Paid Parental Leave for a child born or adopted from 1 July 2025, you may also be entitled to a super contribution on those payments.

There is no separate application for the PPLSC. The ATO will generally calculate the amount automatically and pay it directly into your super fund after the end of the financial year in which you received PPL.

For example, eligible parents who received government-funded PPL during the 2025–26 financial year will generally receive their PPLSC during the 2026–27 financial year.

How Much Will You Receive?

The contribution is calculated using the superannuation guarantee rate of 12% of the PPL paid to you. A small interest component is also included to recognise the time between receiving your PPL and the contribution being paid into your super fund.

Importantly, the contribution is taxed at 15% in your super fund and counts towards your concessional contributions cap. If you also make salary sacrifice or personal deductible super contributions, the PPLSC should be taken into account when reviewing your total concessional contributions for the year.

Where Will The Contribution Be Paid?

In most cases, the ATO will pay the contribution into the super fund that currently receives your employer super contributions.

To help avoid delays, it is a good idea to make sure your details are up to date with the ATO, Services Australia and your super fund. Your name and address should also match across your ATO, Services Australia and super fund records.

What If Paid Parental Leave Is Shared?

Where PPL is shared between parents, each person will receive a super contribution based on their own share of the PPL received. This is particularly important where parental leave is split between two people, as each person’s contribution will be calculated separately based on their individual payments.

The introduction of super on Paid Parental Leave is a relatively small change in the short term, but over time it may help reduce the retirement savings gap created when parents take time away from paid work to care for their children.