Superannuation is now paid on government Parental Leave Pay. The payment is called the Paid Parental Leave superannuation contribution (PPLSC), and it is paid by the ATO, not by your employer and not by Services Australia.
It applies if you care for a child born or adopted from 1 July 2025 and you received Parental Leave Pay in 2025-26 or later. The first contributions are being paid during the 2026-27 financial year. This closes one of the longest-standing gaps in the system, where taking parental leave meant months with no super going in at all.
What changed
Government Parental Leave Pay has never attracted employer superannuation, and it still does not: the ATO confirms that employer-funded and government paid parental leave are both excluded from qualifying earnings, so an employer has no super obligation on it. Instead the Commonwealth pays the contribution directly, through the ATO, as a separate payment after the financial year ends.
ATO, Paid Parental Leave Superannuation Contribution (last updated 24 July 2026). Verified 26 July 2026.
Who gets it
- You care for a child born or adopted from 1 July 2025.
- You received Parental Leave Pay from Services Australia in 2025-26 or a later year.
- If you share Parental Leave Pay with another person, each of you receives a contribution into your own fund, based on your own portion of the pay.
There is no separate claim. Services Australia tells the ATO how much Parental Leave Pay you received and the ATO calculates the contribution from that. Claims for Parental Leave Pay itself continue to go through Services Australia as normal.
How much it is
The contribution is based on the superannuation guarantee rate, currently 12%, applied to the Parental Leave Pay you received, plus an interest component. The ATO may round the amount to the nearest cent.
| Component | Treatment |
|---|---|
| Base contribution | Super guarantee rate (12%) on the Parental Leave Pay received |
| Interest | An interest component is added |
| Tax in the fund | Generally taxed at 15% |
| Concessional cap | Counts towards your concessional contributions cap |
| Social security | Not treated as income for social security, family assistance or child support |
The ATO confirms an interest component is added but does not publish the formula used to work it out, so the figures below are the base contribution only. Your actual payment will be somewhat higher.
How and when it is paid
The PPLSC is paid as a lump sum after the end of the financial year in which you received the Parental Leave Pay, not alongside each fortnightly instalment. In most cases it goes to the fund your contributions are currently paid into, and the ATO notifies you once it has been paid.
Because the payment is matched across three organisations, mismatched details are the main thing that can hold it up. The ATO asks you to check that your name and address match between the ATO and Services Australia, and that your super fund holds your current details including your tax file number. Without a TFN, additional tax may apply to the contribution.
Why there is interest at all
Because the money arrives up to a year and a half after the leave was taken, the interest component compensates for the delay. It is the difference between receiving super contemporaneously, as you would if you were working, and receiving it in arrears after the financial year closes.
A worked example
Priya has a baby in August 2026 and claims the full 130 days of Parental Leave Pay at the 2026-27 rate of $200.94 a day.
Her total Parental Leave Pay is 130 × $200.94 = $26,122.20.
Her base PPLSC is 12% of that: $3,134.66, plus an interest component the ATO adds on top.
The ATO pays it into her super fund as a lump sum after the end of the 2026-27 financial year. It is taxed at 15% in the fund like any other concessional contribution, and it counts towards her concessional contributions cap.
Common questions
Do I need to apply for it?
No. Services Australia reports your Parental Leave Pay to the ATO and the contribution follows automatically. Just make sure your details match across the ATO, Services Australia and your super fund.
Does my employer pay super while I am on parental leave?
Not on government Parental Leave Pay, and not on employer-funded parental leave either, since neither is qualifying earnings. Some employers voluntarily continue contributions as a workplace benefit, so it is worth checking your policy or agreement.
What if my Parental Leave Pay is adjusted later?
If Services Australia adjusts your Parental Leave Pay, the ATO may need to amend your PPLSC entitlement to match.
Author & reviewer
Sarah has spent over a decade advising Australian SMBs on Fair Work, NES compliance, and payroll. Based in Sydney, she has worked across hospitality, retail and professional services.