Paid parental leave super contributions have started (August 2026)

Welcoming a new child is a huge milestone, but taking time out of the workforce can also mean a
pause in super contributions. From July 2026, that gap starts to narrow for eligible parents who
received government-funded Parental Leave Pay (PLP) for a child born or adopted from 1 July 2025.

The Paid Parental Leave Superannuation Contribution (PPLSC) is a government-funded super
payment for eligible parents who receive PLP and is intended to help reduce the long-term
superannuation gap that can arise when a person takes time out of the workforce to care for a child.

Under the scheme, the ATO pays the contribution into your super fund as a lump sum after the end
of the financial year in which you received PLP. There’s no need to make a separate application to
receive the PPLSC.

The first PPLSC recipients will be individuals who received government-funded PLP in 2025–2026 for children born or adopted from 1 July 2025. Calculation and payment of PPLSCs by the ATO will begin from the start of the 2026–2027 financial year. For PLP received in 2026–2027, the related PPLSC will generally be paid after the end of that financial year.

The PPLSC is calculated by applying the superannuation guarantee rate of 12% to the PLP paid to
you, and also includes a nominal interest component designed to compensate for the time between
the original PLP being paid and the later ATO payment of the PPLSC.

The contribution is taxed at 15% in the super fund and counts towards your concessional
contributions cap. If you also make salary sacrifice or personal deductible contributions, the PPLSC
may need to be considered in your contribution planning for the year the lump sum is received.

In most cases, the ATO will pay the contribution to the fund that currently receives your super
contributions. To help avoid delays, check that: your personal details are up to date with the ATO,
Services Australia and your super fund; and your name and address match across your ATO, Services
Australia and super fund records.

If PLP was shared, each person receives a contribution based on their share of the PLP taken. This
makes it especially important that all details are up to date.