Starting July 1, 2025, Australian parents receiving paid parental leave will benefit from a superannuation contribution of up to $3,000, a major step forward in addressing retirement income inequality—particularly for women.
This change, introduced by the federal government, ensures super is paid on government parental leave, significantly improving the financial security of thousands of families.
Let’s break down the new scheme, eligibility, timelines, and what this means for your super fund.
What’s Changing From July 1?
Until now, superannuation was not paid on the government’s Paid Parental Leave (PPL). Beginning July 1, 2025, parents who give birth to or adopt a child will receive an additional 12% of their parental leave income as a superannuation deposit, aligning with the Super Guarantee (SG) rate.
With PPL increasing from 22 to 24 weeks (and up to 26 weeks by 2026), this new super contribution will accumulate alongside it.
Who’s Eligible for the $3,000 Super Boost?
To receive the $3,000 super boost, you must:
- Be eligible for Paid Parental Leave (PPL) under government guidelines
- Have a child born or adopted after July 1, 2025
- Be paid at the minimum wage rate, which will increase to $24.95/hour or $948/week
- Have an active superannuation account where the Australian Taxation Office (ATO) can make the contribution
This benefit is called the Paid Parental Leave Superannuation Contribution (PPLSC). It will be paid automatically by the ATO to your super fund after the end of each financial year, beginning July 2026.
Breakdown of the Payment
| Component | Details |
|---|---|
| Super Contribution Rate | 12% (Super Guarantee Rate) |
| Weekly Parental Leave Payment | $948 per week |
| Length of Leave (from July 2025) | 24 weeks |
| Total Super Boost Estimate | ~$3,000 |
| Start Date for Eligibility | July 1, 2025 |
| Payment Delivery Date | From July 2026 (post-financial year) |
Why This Matters for Parents
Women retire with 25% less super on average than men—largely due to career breaks for childcare. According to financial experts, compounding this extra $3,000 over time can significantly narrow the retirement gap and help secure long-term financial stability for women and families.
In addition, nearly 180,000 families per year are expected to benefit from this change, providing both immediate support and future security.
Maximizing Your Super While on Parental Leave
Here are some key strategies parents can use:
- Check insurance: Inactive super accounts can lose insurance cover after 16 months without a contribution. Ask your fund how to retain coverage.
- Voluntary contributions: Contributing to your super while on leave—even small amounts—can build your fund and reduce tax.
- Spouse contributions & splitting: Consider splitting up to 85% of concessional contributions with your partner to optimize retirement savings.
- Consolidate accounts: Use myGov to combine multiple super funds and save on fees.
- Financial advice: Many super funds offer free, limited advice—a great way to make informed investment decisions.
The $3,000 superannuation boost starting July 1, 2025, is more than just a payment—it’s a powerful step toward financial equity for Aussie families. By recognizing the value of parental care through paid super, this reform will enhance the retirement outlook of thousands of Australians, especially women.
Don’t forget to check your super account, insurance status, and contribution strategies to get the most out of this boost.
FAQs
When will I receive the super payment?
The ATO will deposit the super contribution after the financial year ends, starting from July 2026.
Is the payment automatic, or do I need to apply?
It is automatic if you’re eligible for government Paid Parental Leave and have an active super account.
Can I still make voluntary contributions while on parental leave?
Yes. You can make voluntary contributions or split your contributions with your spouse to boost your super during leave.