In line with the government’s Working for Women strategy announced on 7 March 2024, new legislation has been passed which mandates superannuation payments on government-funded Parental Leave Pay. This will be administered by the ATO and will come into effect from 1 July 2025.
If you are an eligible parent with a baby born or adopted on or after 1 July 2025, you will receive an additional contribution to your nominated superannuation fund. This contribution will be equivalent to the Superannuation Guarantee (currently 12%) of your Parental Leave Pay.
The ATO will pay this lump sum superannuation contribution, including an interest component, after the end of each financial year in which you received government-funded Parental Leave Pay. The first payments will be made from July 2026.
You will continue to apply for Parental Leave Pay through Services Australia, who will assess your eligibility for both the payment and the superannuation contribution.
We are committed to keeping you updated on important legislative changes, give us a call on 1800 668 225 if you’re concerned this may affect your business or personal finances.
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