Paid Parental Leave Changes from 1 July 2025 – What Businesses Need to Know
From 1 July 2025, Australia’s Paid Parental Leave (PPL) system improves employee outcomes: superannuation will be paid on government-funded Parental Leave Pay.
A common question we’re hearing is: “Do employers now need to pay super on Paid Parental Leave?”
In most cases, the answer is no — the ATO pays it.
What’s changing?
If an employee receives government-funded Parental Leave Pay for a child born or adopted from 1 July 2025, the ATO will pay a superannuation amount called the Paid Parental Leave Superannuation Contribution (PPLSC).
Paid Parental Leave changes 2026
Who pays the super?
✅ The ATO pays the super
❌ Employers do not pay the super on PPL
The contribution is:
- based on the Superannuation Guarantee rate
- paid as a lump sum
- paid after the end of the financial year (not each pay run)
Paid Parental Leave changes 2026
This means employers generally do not need to calculate or administer super for the PPL amounts.
Do employers still pay the PPL amount?
Sometimes, yes.
While the ATO handles the super, some employers may still be required to process the Paid Parental Leave payments. In those cases:
- the business receives PPL funding, then
- pays it to the employee via payroll
This can require the business to register and manage the process through Services Australia’s employer channels (Business Hub).
What business owners should do (practical checklist)
If your business receives a request to provide Paid Parental Leave:
- Make sure you can access Business Hub / employer services
Some employers must register and manage PPL through Services Australia Business Hub.
- Accept the employer role (if required)
You may need to confirm you will provide Parental Leave Pay and follow the required steps.
- Process PPL payments correctly through payroll
Funding is provided first, then paid to the employee.
- Do not add super to PPL payments
Even though super is now included, the ATO pays it later — employers don’t calculate or pay it.
What employees should know (so you can set expectations)
Employees may expect super to show up immediately — but it won’t.
Instead:
- Services Australia confirms how much PPL was paid, and
- the ATO pays the super after EOFY as a lump sum
Employees should also ensure their details match across:
- Services Australia
- ATO
- Their super fund
Need help?
If you receive an employer PPL notice and you’re unsure what to do, we can help you:
- confirm whether the business must process PPL payments
- set up Business Hub access
- keep payroll and compliance tidy
👉 Reach out to NBK Services to start the conversation.
Jennifer Van De Wouw
Founder & CEO
NBK Services Pty Ltd
Strategic bookkeeping | Payroll | Compliance | Planning & Strategy
📞 1300 914 330
🌐 www.nbkservices.com.au
Further Reading is recommended:
ATO- Paid Parental Leave Superannuation Contribution – https://www.ato.gov.au/search-results#q=parental%20leave%20pay
For more information, please see Services Australia – About Parental Leave Pay payments https://www.servicesaustralia.gov.au/about-paid-parental-leave-scheme?context=23121
