Paying super on expanded government paid parental leave (April 2024 Tax Update)

HR managers, and employees planning for parental leave.

From 1 July 2025, the Australian Federal Government will include superannuation contributions in paid parental leave payments, managed by the ATO.
This initiative includes avoiding placing an administrative burden on employers for these superannuation payments.
This reform is part of an effort to extend the Paid Parental Leave Scheme to a full six months by 2026.
Paid parental leave will increase to 22 weeks from July 2024, 24 weeks from July 2025, and 26 weeks by July 2026.