For decades, taking time off to have a baby meant your superannuation simply stopped. That changed on 1 July 2025: the government now pays a superannuation contribution on government-funded Paid Parental Leave (PPL), closing one of the biggest gaps in Australia’s retirement system. But the new payment covers only part of a typical parental leave period, it arrives months after the leave ends, and it sits alongside — not instead of — whatever super your employer pays on its own parental leave scheme.
This guide explains exactly how super on parental leave pay works: how much you get, who pays it, when it lands in your fund, and what happens during unpaid leave. Check your broader entitlements with our free super calculator.
The two kinds of parental leave pay — and their different super treatment
Australian parents can receive two separate types of paid parental leave, and super works differently for each:
| Government Paid Parental Leave | Employer-funded parental leave | |
|---|---|---|
| Who pays the leave? | Services Australia (government) | Your employer |
| Rate | National minimum wage: $1,004.90/week from 1 July 2026 | Usually your full salary, per your agreement |
| Duration | 26 weeks from 1 July 2026 (24 weeks in 2025–26) | Varies — commonly 12–18 weeks |
| Super on it | 12% paid by the ATO (for children born/adopted on or after 1 July 2025) | 12% SG paid by your employer (it is ordinary time earnings) |
| When super arrives | After the end of the financial year, as a lump sum | Each pay cycle (under payday super, from 1 July 2026) |
Many parents receive both: government PPL at the minimum wage rate plus employer-funded leave at full pay, taken consecutively or concurrently depending on the employer’s policy. In that case, super is paid on both streams — by two different payers, on two different timetables.
Super on government Paid Parental Leave: the details
How much do you get?
The super contribution is 12% of your government Parental Leave Pay. From 1 July 2026, the full entitlement is 26 weeks at $1,004.90 a week — a total payment of $26,127.40 — so the super contribution on the full entitlement is $3,135.29. If you share the leave with your partner, each person receives a super contribution on their own share of the payment.
| Parental Leave Pay received | Super contribution (12%) |
|---|---|
| Full 26 weeks: $26,127.40 | $3,135.29 |
| 13 weeks (half the entitlement): $13,063.70 | $1,567.64 |
| 4 weeks (partner reserve, from 1 July 2026): $4,019.60 | $482.35 |
| 24 weeks (2025–26 entitlement): $22,754.40* | $2,730.53 |
*The 2025–26 weekly rate was based on the then national minimum wage. The 2026–27 figures above use the current $1,004.90 weekly rate.
Who qualifies?
You qualify for the super contribution if you receive government Parental Leave Pay for a child born or adopted on or after 1 July 2025. The date of birth or adoption is what matters, not the date you lodge your claim. If your baby was born on 28 June 2026, you fall under the 24-week entitlement; born on 1 July 2026, you get 26 weeks. Services Australia adjusts pre-birth claims automatically once proof of birth confirms the date.
You must also meet the usual PPL eligibility rules: an individual income limit, Australian residency, and the work test (generally, you worked at least 10 of the 13 months before the birth or adoption, with no more than a 12-week gap). From 1 July 2026, four weeks of the entitlement are reserved for the partner as “use it or lose it” days — if the partner does not take them, they cannot be transferred to the other parent.
Who pays it, and when does it arrive?
The ATO pays the contribution, not your employer and not Services Australia. The ATO calculates 12% of all government PPL payments you received in a financial year and pays the total — including an interest component — directly into your nominated super fund after the end of that financial year. You do not need to apply separately; it is automatic. The first contribution payments for the 2025–26 year commenced from July 2026.
The timing catches many parents by surprise: if you take leave in late 2026, the super may not appear in your fund until well into 2027. That is normal, not a missing payment. Check your fund’s transaction history after the financial year ends, and contact the ATO if nothing has appeared by the following October.
Is the super contribution taxed?
The contribution is treated as a concessional contribution and counts towards your $30,000 annual concessional contributions cap. Because most parents on leave have lower taxable income that year, the 15% contributions tax in the fund rarely creates a problem — but if you also salary sacrifice or receive large employer contributions in the same year, keep the cap in mind.
Super on employer-funded parental leave
Employer-funded parental leave is paid by your employer as ordinary salary, which makes it ordinary time earnings for super guarantee purposes. Your employer must therefore pay the 12% SG on it, on the same timetable as your normal pay — every pay cycle under payday super from 1 July 2026.
For example, if your employer pays 14 weeks of parental leave at your full salary of $1,600 a week ($22,400 total), your employer owes $2,688 in SG on that leave. This is on top of the ATO’s contribution on any government PPL you also receive. Some employers go further and pay super on unpaid parental leave voluntarily, but that is uncommon and always worth confirming in writing — it is not a legal requirement.
One thing to check: some employers calculate SG on employer-funded leave only if the leave is paid at full pay. If you take employer leave at half pay over double the period, SG is payable on the amounts actually paid, so the total SG is the same — it is just spread over more pay cycles.
The gap that remains: unpaid leave
Here is the honest limit of the reform. The government super contribution covers only the paid PPL period — up to 26 weeks. Employer SG covers only the employer-paid period. The remaining unpaid parental leave — which under the National Employment Standards can extend to 12 months, and a further 12 months on request — attracts no super from anyone.
Consider a parent who takes 12 months off: 26 weeks of government PPL (with ATO super of about $3,135) plus, say, 14 weeks of employer leave at full pay (with employer SG on top), followed by roughly 26 weeks of unpaid leave with no super at all. For a parent on $90,000, those 26 unpaid weeks represent about $5,540 in missed employer SG alone — before compounding. See our guide to how career breaks affect super for what that kind of gap becomes by retirement.
Ways to soften the unpaid period include: voluntary contributions during leave (even small ones compound for decades), spouse contributions or super splitting from a working partner, and carry-forward concessional contributions in the five years after you return, provided your total balance is under $500,000.
What to check before, during and after leave
- Before leave: confirm in writing whether your employer pays SG on its parental leave scheme, and whether it continues any super on unpaid leave (rare, but ask).
- Confirm your fund details: make sure Services Australia and the ATO have your current super fund nominated, so the ATO contribution lands in the right account.
- During leave: check that employer SG credits keep appearing for employer-paid leave weeks. Under payday super they should arrive each pay cycle.
- After the financial year: look for the ATO’s PPL super contribution in your fund. If it has not appeared within a few months of year-end, contact the ATO.
- On return: check your concessional cap position in myGov. Unused cap from low-income leave years may be available as carry-forward amounts for up to five years.
Frequently asked questions
Do I need to apply for super on Paid Parental Leave?
No. The ATO calculates it automatically from your Parental Leave Pay records and pays it into your nominated fund after the end of the financial year. There is no separate application.
Does my employer pay super on government PPL?
No. The ATO pays it, not your employer. Your employer’s only SG obligation is on payments it makes itself, such as employer-funded parental leave.
What if I share PPL with my partner?
Each person receives a super contribution on their own share of the Parental Leave Pay. The four-week partner reserve from 1 July 2026 is specifically designed to encourage sharing, and its super follows the same rule.
Does super on PPL count towards my concessional cap?
Yes. The ATO contribution counts as a concessional contribution for the year it is paid into your fund, which may differ from the year you received the leave pay. Keep this in mind if you also make large voluntary contributions.
What about children born before 1 July 2025?
The super contribution applies only to children born or adopted on or after 1 July 2025. Earlier births do not attract the ATO contribution, even if leave was taken after that date.
Does unpaid parental leave affect my super in any other way?
Fund fees and insurance premiums continue during unpaid leave, so a small balance can shrink if no contributions arrive. Review your insurance cover and fee settings before a long break, and consider a small voluntary contribution to keep the account active.
The bottom line
Super on parental leave pay is a real improvement: a full 26-week government entitlement now comes with about $3,135 in ATO-paid super, on top of whatever SG your employer pays on its own leave scheme — and neither requires you to apply. But it covers only the paid portion of leave. The unpaid months still cost you super, and that cost compounds for decades. Plan for the gap before you go on leave: confirm your employer’s position in writing, keep your fund details current, watch for the ATO payment after year-end, and use carry-forward contributions and spouse splitting to rebuild when you return. Run the numbers for your own leave through our super calculator to see the full picture.