Paid Parental Leave Scheme: 2024-2026 Increases and Super on PPL
How the Commonwealth Paid Parental Leave scheme is expanding to 26 weeks by 2026 — eligibility, the staged increases and superannuation on PPL from 1 July 2025.
The Paid Parental Leave Act 2010
The Paid Parental Leave Act 2010 (Cth) establishes the Commonwealth Paid Parental Leave (PPL) scheme, administered by Services Australia. This scheme provides government-funded payments to eligible working parents who are caring for a newborn or recently adopted child. The PPL payment is made at the National Minimum Wage rate. National Employment Standards 11 entitlements deep dive
From 1 July 2023, the previously separate ‘Parental Leave Pay’ and ‘Dad and Partner Pay’ have been combined into a single, flexible PPL payment. This allows families greater flexibility in how they utilise the available leave.
Eligibility for the PPL scheme requires parents to meet a work test, an income test, and residency requirements. The work test requires paid work in 10 of the 13 months prior to the birth or adoption. The income test limits individual adjusted taxable income to $175,788 for the 2024-25 financial year, or family income to $364,350.
Staged increases from 2024 to 2026
The Paid Parental Leave (PPL) scheme is undergoing staged increases as a result of the Paid Parental Leave Amendment (More Support for Working Families) Act 2024. These changes affect eligible employees and employers, and are important to understand in relation to National Employment Standards 11 entitlements deep dive.
The first increase took effect from 1 July 2024, extending the maximum available PPL from 20 weeks to 22 weeks. A further increase will occur on 1 July 2025, bringing the maximum PPL available to 24 weeks.
The final increase, completing the legislated schedule, will occur on 1 July 2026, when the maximum PPL available will be 26 weeks.
Sharing and flexibility
Families are able to share their Paid Parental Leave (PPL) entitlement. This means that in two-parent families, both parents can receive PPL payments. From 1 July 2026, a minimum of 4 weeks of the 26-week PPL entitlement must be reserved for each parent and taken, or these weeks will be forfeited.
Parents can choose to take PPL flexibly. Payments can be received in blocks at any time within a two-year period following the child’s birth or adoption. Single parents are eligible to access the full PPL entitlement.
PPL payments are administered by Services Australia. While most eligible employees continue to receive payments through their employer, employers have the option, since 1 July 2023, to allow Services Australia to pay the employee directly.
Superannuation on PPL
The Paid Parental Leave Superannuation Contribution commenced on 1 July 2025, introduced by the Paid Parental Leave (Superannuation Contribution) Act 2025. This contribution addresses the previous absence of Superannuation Guarantee on Paid Parental Leave payments.
The Commonwealth (via the ATO) makes the contribution at the Superannuation Guarantee rate, which is 12% from 1 July 2025. This applies to the full amount of PPL received by the parent.
The superannuation contribution is paid annually as a single lump sum to the parent’s nominated super fund, following the end of the financial year in which the PPL was received.
Frequently asked
Is Commonwealth PPL the same as employer-funded parental leave?
No. The Commonwealth PPL is a government payment at the National Minimum Wage. Employer-funded paid parental leave (where offered) is separate and paid under the employer's policy or industrial instrument. An employee can receive both, and many do. Unpaid parental leave under the NES (up to 24 months) sits on top and is the right to be absent from work.
When did super start being paid on PPL?
From 1 July 2025. The Paid Parental Leave Superannuation Contribution is paid by the Commonwealth via the ATO at the Superannuation Guarantee rate on PPL received in the financial year, paid as a lump sum into the parent's nominated super fund after year end.