From July 2026, we’ll start making the first Paid Parental Leave Super Contribution (PPLSC) payments to self-managed super funds (SMSFs).
A person will be eligible for PPLSC if they received Parental Leave Pay from Services Australia for a child born or adopted on or after 1 July 2025.
The contribution is based on the Superannuation Guarantee rate and includes an interest component. We’ll pay it as a lump sum after the end of the financial year in which Parental Leave Pay was received. We’ll generally pay it to the fund where the recipient’s super contributions are currently paid.
PPLSC will be treated as a concessional contribution and subject to tax at 15%.
SMSF trustees should be ready to:
- allocate PPLSC payments to the correct member account
- apply the correct tax treatment
- meet reporting requirements
- respond to any overpayment actions if notified by the ATO.
SMSF trustees should also check their fund and member details are up to date. Members should make sure their name and address match with Services Australia, the ATO and their SMSF. Keeping details current helps us pay the contribution to the correct fund and member account.
Eligible recipients do not need to apply separately for the PPLSC. They should continue to apply for Parental Leave Pay through Services Australia.
For more information about PPLSC, visit ato.gov.au/PPLSC.
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