Paid Parental Leave Amendments: Your entitlements in 2025
By Ethan Kilham
The Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 received assent on 1 October 2024.
This Bill amends the Paid Parental Leave Act 2010 (Cth) and Small Superannuation Accounts Act 1995 to provide a superannuation contribution for parents receiving Parental Leave Pay.
If you are expecting a child born on or after 1 July 2025, you should be aware of the two important changes detailed in this article:
1. Superannuation Contributions
If you expect to become a recipient of Parental Leave Pay, then you will be entitled to receive the Paid Parental Leave Superannuation Contribution (‘PPLSC’).
The PPLSC is a payment made to your nominated superannuation account at the end of the tax year by the Australian Taxation Office (‘ATO’).
You will not need to claim the PPLSC, it will be automatically calculated and disbursed by the ATO.
The PPLSC will comprise a core component – being 12% of the total Parental Leave Pay paid in the income year – and an interest component in recognition of the payment being a lump-sum annual contribution.
2. Paid Parental Leave Entitlements
The Parental Leave Pay will increase from a 22-week entitlement to a 24-week entitlement, with the secondary carer to take at least three weeks of the entitlement.
On 1 July 2026, this will increase to a 26-week entitlement with the secondary carer to take at least four weeks of the entitlement.
The Parental Leave Pay is paid at a rate based on the national minimum wage, which is $25.20 as of 1 July 2025.
The 24-week period (120 business days) can be taken as a single continuous period, or flexibly, within the 24 months following your child’s birth or adoption.
If you are expecting a child, or are a business seeking compliance advice, please contact Eve Lynch.
Disclaimer
The above does not constitute legal advice, but is information which may be of general interest. Beswick Lynch Lawyers will not be held liable or responsible for any claim, which is made as a result of any person relying upon the information contained in this publication.