The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

9.1 Payability & calculation of the PPLSC

Introduction

A PPLSC is payable in relation to children born or adopted on or after 1 July 2025.

A person is eligible for a PPLSC for an income year (1.1.I.30) if PLP was paid to or for them in that year.

The Commissioner of Taxation (Commissioner) (1.1.C.125) will generally calculate and pay a PPLSC in the subsequent income year.

PPLSC payability

A PPLSC is payable for a person for an income year if Centrelink (1.1.C.20):

  • paid a PPL funding amount (1.1.P.180) for the person to the person’s employer in that year, or
  • paid an instalment (1.1.I.80) directly to the person that was payable for that year.

Note: Any PPL funding amount that is subsequently raised as a debt owed to the Commonwealth by the person’s employer in that year is disregarded when determining whether a PPLSC is payable.

Act reference: PPLAct section 115B Person for whom PPL superannuation contribution payable, section 168 PPL funding amount debts—amounts not paid as PLP instalments, section 63 Instalments of PLP, section 84 When the Secretary pays instalments, section 75 Payment of PPL funding amounts

Policy reference: PPL Guide 6.3.1.20 PPL funding amount debts, 4.3.4 PPL funding amounts, 4.3.1 Instalments of PLP

PPLSC amount

The Commissioner determines the amount of a PPLSC payable for a person for an income year by adding together

  • the base contribution (1.1.B.05) for the person for that year multiplied by the SG charge percentage (1.1.S.96) for that year, plus the nominal interest rate amount (1.1.N.20) for the person for that year.

The SG charge percentage will be 12% from 1 July 2025.

The Commissioner must make this determination as soon as reasonably possible once they have sufficient information to determine the amount of PPLSC payable and where the PPLSC is to be paid.

Example: Francesca's child is born on 19 July 2025. Centrelink determines that Francesa's claim for PLP is effective and first pays a PPL funding amount to Francesca’s employer on 20 August 2025 to be paid to Francesca in alignment with her normal salary pay cycle.

A total of $19,910.10 in PLP was paid for Francesca in the 2025–26 income year. The SG charge percentage is 12% for the 2025–26 income year.

On 31 August 2026, the Commissioner determines the amount of Francesca's PPLSC for the 2025–26 income year and where the PPLSC is to be paid.

First, the Commissioner works out the multiplier amount needed to calculate the nominal interest rate amount as follows:

StepDescription
1The number of days between 20 August 2025 (the first day a PPL funding amount was paid for Francesca) and 31 August 2026 (the day the Commissioner makes a determination) is calculated and equals 377 days.
2377 is divided by 365, which equals 1.03287671232877.
31.03287671232877 is multiplied by 10% and rounded to 4 decimal places, which equals 0.1033.
The multiplier for the nominal interest rate amount is 0.1033.

Then, the Commissioner works out the nominal interest rate amount as follows:

StepDescription
1Francesca’s base contribution of $19,910.10 is multiplied by the SG charge percentage of 12%, which equals $2,389.212.
2$2,389.212 is multiplied by the multiplier amount of 0.1033, which equals $246.8055996.
The nominal interest rate amount is $246.8055996.

Finally, the Commissioner works out the PPLSC payable to Francesca as follows:

StepDescription
1Francesca’s base contribution of $19,910.10 is multiplied by the SG charge percentage of 12%, which equals $2,389.212.
2The nominal interest rate amount of $246.8055996 is added to $2,389.212, which equals $2,636.02 (rounded up to the nearest cent).
The amount of PPLSC payable to Francesca is $2,636.02.

Act reference: PPLAct section 115C Amount of PPL superannuation contribution, section 115D Commissioner’s determination

PPL Rules Part 5 Division 2—Method for working out multiplier amount, section 37 Timeframes for determining the amount of a PPL superannuation contribution payable

Policy reference: PPL Guide 6.3.1.20 PPL funding amount debts, 4.3.2 Deductions from instalments of PLP

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