From 1 July 2025: Government to Pay Super on Paid Parental Leave

  • 27/05/2025 8:21 AM
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Positive news for Australian families — and Lightning Payroll is here to help you understand what it means for your business.

From 1 July 2025, a new superannuation policy will take effect:

  • The Australian Government will start paying superannuation on Paid Parental Leave for eligible parents whose child is born or adopted on or after this date.

This change will help grow the super balances of parents taking time off work to care for a new child, improving financial outcomes in the long term.

What Employers Need to Know

As an employer, you’ll be glad to know that there’s nothing additional you need to do. The super contribution will be calculated and paid by the Australian Taxation Office (ATO), not by you.

Once the relevant financial year has ended, starting from July 2026, the ATO will make a direct super contribution to the employee’s nominated fund. This means there’s no need to calculate or pay this super through your regular payroll process.

No Action Required in Lightning Payroll

You don’t need to make any changes in Lightning Payroll to comply with this upcoming reform. However, we’re committed to keeping you informed about changes that affect payroll, leave, and superannuation obligations.

For more information, visit the ATO’s official page: Paid Parental Leave Superannuation Contribution.

Thanks for choosing Lightning Payroll — supporting Australian employers with every pay run.

Photo by Heike Mintel on Unsplash