Is government Paid Parental Leave a cost to the employer?

No. Government PLP is paid by Services Australia and passed through payroll to the employee. The employer is reimbursed in full. The real costs to employers are any voluntary top-up to full wage, super on those top-up weeks, payroll admin time, and backfilling the role while the employee is on leave.

Do employers have to pay super on their own parental leave top-up?

Usually yes. Most enterprise agreements and some modern awards require super to be paid on employer-funded parental leave top-up weeks. Super on government PLP weeks is paid directly by the ATO from 1 July 2025 — not by the employer. Check your EA wording.

What is the biggest cost of parental leave to a small employer?

Backfill. Replacing the employee for 6–12 months through a contractor or temp agency typically costs 20–30% more than their direct wage, and represents the single largest line item. Top-up pay and super are predictable; backfill is where most small employers get surprised.

What changes for employers on 1 July 2026 with parental leave?

Government PLP extends from 22 weeks to 26 weeks, with 4 weeks reserved for the non-birth partner. Employers continue to pass through PLP via STP but now for a longer period. If your scheme tops up to full wage during PLP, you will pay top-up for 26 weeks instead of 22.

Employer Parental Leave Cost Calculator

Work out what parental leave actually costs your business. Separates out the reimbursed government PLP from the real employer costs — top-up pay, super on top-up, payroll admin, and backfill.

Last verified: 1 July 2025

Employee weekly pay (before tax)*

The pay rate of the employee going on parental leave

Employer top-up weeks

weeks

Weeks your scheme pays employer-funded parental leave

Top-up pays the gap above government PLP (concurrent)

Tick if your scheme tops up to full wage during government PLP weeks. Untick if you pay full wage as separate weeks on top of PLP.

Pay super on employer top-up weeks

Most enterprise agreements require this. Government pays super on the PLP weeks separately.

Payroll admin hours per claim

hours

STP reporting, PLP reconciliation, super pass-through (typical: 3–8 hrs)

Admin hourly rate

$/hr

Backfill weeks

weeks

How long you'll cover the role (contractor, temp, secondment)

Backfill weekly cost

$/wk

Temp agencies typically charge 20–30% above direct wage cost

PPL claims per year

claims

How many employees go on parental leave in a typical year

Processing Paid Parental Leave Through Payroll: A Small Employer's Guide (1 July 2026)

Step-by-step guide to administering government PPL through payroll for small employers. Covers Services Australia registration, Xero/MYOB/QuickBooks setup, STP reporting, reimbursement reconciliation, and the 1 July 2026 changes (26 weeks + new partner reserve).

Stacking Government PPL with Employer Paid Leave: How They Work Together (With Worked Examples)

Most employees don't know you can combine government Paid Parental Leave with your employer's scheme. Here's how the stacking works, the two common structures (top-up vs sequential), and worked examples at $70k, $120k, and $180k salaries.

Payroll Tax Australia 2026: State-by-State Thresholds & Rates for Employers

Complete 2026 guide to payroll tax in Australia. State-by-state thresholds (NSW $1.2M, VIC $900K, QLD $1.3M) and rates (4.85-6.85%), what's included in taxable wages, grouping rules, and how to register — everything employers need to know.

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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.

Employer Parental Leave Cost Calculator

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