At Bramelle Partners, we keep Australian businesses and individuals informed about important legislative changes that affect their finances. The Federal Government’s announcement to pay superannuation on Paid Parental Leave (PPL) from 1 July 2025 marks a significant step toward improving women’s long-term financial security and closing the super gap. Here’s what the change means for you and your family.
According to the government, this reform, along with the proposed expansion to Paid Parental Leave is key to women’s economic security and is beneficial for the broader economy.
Currently, subject to meeting eligibility conditions, a family can receive up to 20 weeks (or 100 payable days) of Government PPL at rate of $176.55 a day before tax or $882.75 per 5-day week (at the national minimum wage for children born or adopted from 1 July 2023). 2 weeks out of the 20 weeks is reserved for each parent. Current eligibility conditions for the government PPL payment include: caring for a child who was born or adopted from 1 July 2023; meeting the income test – individual adjusted taxable income must be $168,865 or less in the 2023-23 financial year. If the individual income test cannot be met, the family income test can be used.
How Employers and Families Can Prepare
Review your parental leave policies to ensure alignment with the new rules from 1 July 2025.
Check super fund details to confirm where contributions will be paid.
Plan for upcoming tax years — especially if your business offers employer-funded parental leave in addition to the government scheme.
Speak to your accountant to understand how these changes interact with your existing payroll and super obligations.
With the passing of recent legislation, the PPL scheme will be expanded from 1 July 2024. From that date, individuals and families will have access to an extra 2 weeks of leave (22 weeks in total) which will increase to 24 weeks from 1 July 2025 and to 26 weeks from 1 July 2026. This means a total of 6 additional weeks of PPL for new parents, and by 2026, a total of 4 weeks will be reserved for each parent on a use it or lose it basis, which will help encourage greater sharing the care responsibilities. The number of PPL days that a family is able to take together at the same time will also be increased to 4 weeks from 1 July 2025 from the current 2 weeks, which will increase flexibility for families and support parents to take time off work together.
The government hopes that these changes along with reforms to childcare and parenting payment will mean a more dignified and secure retirement for more Australian women.
Get Advice on Tax and Superannuation Changes
Speak to one of our accountants if you have any questions about the changes in tax for 2023.
