2025–26 · PPL · Childcare Subsidy · Super
Parental Leave Financial Impact Calculator
See the real numbers behind having a baby in Australia — government PPL income, your monthly shortfall, childcare costs after the Childcare Subsidy, and the long-term impact on your super balance.
Your situation
Annual salary
Before tax, before leave
Total weeks on leave
Including government PPL and any unpaid leave
Employer top-up (per week)
Some employers top up to full salary — enter $0 if none
Childcare weeks per year
Full-time long day care after returning to work
I have a HECS debt
Leave year reduces your repayment
Government Paid Parental Leave — 22 of 22 weeks claimed
You receive $918/week from the government for up to 22weeks. That's $20,196 total ($20,196 after tax). From 1 July 2025, PPL also attracts $2,323 super at 11.5%.
Your parental leave summary
Monthly on leave
$3,978
PPL + top-up, after tax
Monthly shortfall
$1,890
vs your normal take-home
Govt PPL (net)
$20,196
over 22 weeks
Childcare/yr
$7,536
after childcare subsidy
Income during leave (22 weeks)
What you forgo vs working
Childcare costs (48 weeks/yr)
CCS estimated at 72% for a median income earner. Your actual subsidy depends on your combined family income and hours of recognised activity. Check servicesaustralia.gov.au for an exact figure.
Leave costs $1,890/month — see the full impact on your financial plan
Model how parental leave affects your FIRE date, super balance, and savings trajectory.
See my full plan →How parental leave works financially in Australia
Australia's government Paid Parental Leave (PPL) scheme pays the National Minimum Wage for up to 22 weeks — rising to 26 weeks by 2026. It's taxable income, claimed through Centrelink, and can be taken flexibly within two years of birth. From 1 July 2025, PPL also attracts 11.5% superannuation contributions — a significant improvement that adds directly to your retirement savings.
The gap between PPL and your normal salary is the key number most families underestimate. On a $100,000 salary, PPL replaces roughly 45% of your net income. Without employer top-up, the monthly shortfall can be $3,000–$4,000. Planning ahead — whether through savings, reduced expenses, or negotiating employer top-up — is the difference between a stressful leave and a comfortable one.
Childcare after you return is often the bigger long-term cost. Long day care averages around $560 per week before the Childcare Subsidy. At median income, the CCS covers roughly 72%, leaving around $156/week out of pocket — but costs vary significantly by suburb and centre. Use the calculator to estimate your specific situation.
Frequently asked questions
How much is the government Paid Parental Leave (PPL) in 2025–26?
The government PPL pays the National Minimum Wage — $918 per week in 2025–26 — for up to 22 weeks. From 1 July 2025, PPL also attracts 11.5% superannuation contributions, which is new and adds to your retirement balance while you're on leave. You claim through Centrelink and can take it any time within two years of the birth.
Does my employer have to top up my parental leave pay?
No — there is no legal requirement for employers to top up parental leave beyond the government minimum. However, many employers (particularly in professional services, government, and large corporates) offer between 6 and 16 weeks at full pay. Check your employment contract or enterprise agreement. If your employer offers top-up, the calculator shows how much it closes the income gap.
How does the Childcare Subsidy (CCS) work?
The Childcare Subsidy covers a percentage of your childcare fees based on your combined family income. For a household earning under $80,000, the subsidy is around 90%. At $130,000 it drops to roughly 72%, and it phases out at higher incomes. You apply through myGov before your child starts care. The subsidy is paid directly to the childcare centre and you pay the gap.
Is my super affected while I'm on parental leave?
Yes — in two ways. First, if your employer isn't paying salary, they generally aren't required to pay Super Guarantee (SG) on unpaid leave (check your enterprise agreement for exceptions). This creates a gap in your retirement savings that compounds over time. Second, from 1 July 2025, the government PPL now attracts 11.5% super — so you do get some super on your government payment.
How does parental leave affect my HECS repayment?
HECS repayments are based on your total income for the financial year. If you take parental leave partway through the year, your total income drops, potentially pushing you into a lower HECS repayment band or below the threshold entirely. This means you'll repay less HECS that year — a genuine financial benefit of leave that's often overlooked.
Can both parents take parental leave?
Yes. Under the expanded PPL scheme, the 22 weeks can be split between partners — each can take a portion of the government leave flexibly. Partners can take their leave at the same time or separately within two years of birth. Some employers also offer separate paternity or partner leave entitlements on top of the government scheme.