From 1 July 2026, paid parental leave (PPL) in Australia will increase from 24 to 26 weeks.
This marks the third and final stage of the federal government’s most recent phased parental leave expansion – which began with increasing PPL from 20 weeks to 22 weeks back in 2024, before rising to 24 weeks the following year.
The amount of shared care leave reserved for each eligible parent in a couple will also be increased from three to four weeks on a “use it or lose it” basis, to encourage a better distribution of carer responsibilities.
Prior to this three-year policy effort, PPL in Australia had been effectively frozen at 20 weeks for over a decade, and pundits have expressed concerns that the country is once again at risk of “drifting into another lost decade” in parental leave reform.
As touched upon earlier, the national standard has traditionally lagged behind those of comparable economies.
Examining the OECD based on one comparative methodology (as reported by Human Resources Director): the average total paid parental leave entitlement across member countries is approximately 52.7 weeks when you combine paid maternity, parental, and home-care leave.
Countries such as Sweden and Japan offer significantly longer paid leave periods under their respective national schemes, including almost 69 weeks (at roughly 80% of income for 390 days) and up to an entire year (at 67% of base salary for the first 180 days).
By contrast, Australia only allows half of the latter at the minimum wage rate.
Employers should continue to monitor policy developments and ensure their payroll systems and leave policies remain aligned with the evolving legislation.
How can you prepare for the new Paid Parental Leave in Australia?
- Review internal policies
Assess the new PPL terms against your company’s entitlements to ensure employees aren’t disadvantaged. - Payroll & systems readiness
As always, it’s worth checking whether you have the right tools in place to manage leave requests, track shared parental leave, and ensure efficient payroll and superannuation obligations are applied correctly as entitlements change. - Workforce planning
Going hand in hand with the systems tip, a little platform visibility – in terms of both personnel on deck and financials – can go a long way in these cases.
What is Paid Parental Leave in Australia?
Paid parental leave refers to government-subsidised payments made to eligible parents during the early period after the birth or adoption of a child.
The scheme is administered by Services Australia and does not create a statutory leave entitlement in employment law – rather, it provides financial support that complements existing workplace rights under the National Employment Standards (NES) and any employer policies.
When was Paid Parent Leave introduced?
The Paid Parental Leave (PPL) scheme was formally established in 2011 to help working families take time off work to care for a newborn or newly adopted child. Over time, this evolved from separate payments for primary carers and partners into the current combined and expanded payment that can be shared between parents.
How much Paid Parental Leave is available?
Under the Australian government’s current PPL system, the number of payable days depends on the child’s birth or adoption date (as follows).
Note: these days do not need to be taken consecutively and can be used flexibly, including single days or smaller blocks, as long as they are taken before the child’s second birthday on a “use it or lose it” basis.
Superannuation on Paid Parental Leave
From 1 July 2026, superannuation contributions at the legislated rate (currently 12%) are scheduled to be made on government-funded parental leave pay and paid directly into the recipient’s super fund, subject to the final legislation and any future amendments, helping to address retirement savings gaps.
Paid Parental Leave eligibility criteria
To qualify for Parental Leave Pay:
- You must be the primary carer of a newborn or newly adopted child
- You must meet the work and income test – generally a minimum number of hours worked in the test period before the child’s birth or placement
- You must not be working on your Parental Leave Pay days (except for allowable reasons)
- You must have registered or applied to register your child’s birth with your state or territory birth registry (if they’re a newborn)
- You must be residing in Australia and meet residency requirements
Both birth and adoptive parents can claim the payment, and parents can share the payable days between them. Single parents may indeed access the full entitlement.
If you have multiple births (e.g. twins or triplets), you can only receive Parental Leave Pay for one child. If you’re sharing Parental Leave Pay, you and the other parent need to claim Parental Leave Pay for the same child.
In the unfortunate event of a stillbirth, you may still qualify for either Paid Parental Leave or Stillborn Baby Payment.
Aside from those who do not meet this baseline eligibility criterion, foster carers with children who weren’t placed in their care by an authorised party for the purposes of adoption are also ruled out.
Paid Parental Leave works & employer leave
Government-paid parental leave is distinctly separate from employer-provided paid leave entitlements, such as maternity or paid parental leave offered under an enterprise agreement or contract.
Employers may offer additional paid parental leave, often referred to as “top-up,” which can increase income during leave beyond the government weekly rate based on the national minimum wage.
Unpaid parental leave under the Fair Work Act
In addition to paid parental leave payments, most employees under the Fair Work Act 2009 are entitled to up to 12 months’ unpaid parental leave if they have completed at least 12 months’ continuous service with their employer. This can be extended to 24 months in some circumstances with the employer’s agreement.
Fair Work safeguards rights such as return to work and protection from discrimination because of parental leave.
Flexible & shared parental leave
Parents can choose how they use their paid parental leave days:
- Taken in a single block
- Separated into multiple blocks
- Shared between both parents as they see fit, within scheme rules
A minimum number of days are reserved for the second parent to encourage shared care, increasing over time as the scheme evolves.
How to claim Paid Parental Leave
Claims are made through Services Australia, often well before the expected birth or adoption date. A claim can usually be lodged up to 97 days (about three months) before the child’s expected date of birth or placement. Payments are typically made at the national minimum wage rate, and claimants receive a pay slip for each payment.
Employer obligations & best practice
While government-paid parental leave does not create an employment entitlement, employers still have the following obligations:
- Process & respond to parental leave requests in accordance with Fair Work Act notice and evidence requirements
- Maintain the employee’s job or consult on alternatives (if necessary)
- Uphold anti-discrimination & workplace rights during and after leave
Employers regularly adopt best practice policies that go beyond minimum legal requirements to support employees and retain talent.
International comparisons
Australia’s approach to paid parental leave, while expanding, differs from some OECD peers in the length and flexibility of leave, as well as in how superannuation is applied.
The 2025-26 federal budget and legislative changes aim to improve gender equality outcomes by gradually increasing leave entitlements and adding super contributions on parental leave pay.
Note: comparisons are high-level and purely illustrative, data sourced from various government websites.
Key takeaways for employers
As paid parental leave entitlements continue to expand, employers should ensure their internal policies, payroll processes, and workforce planning practices are reviewed regularly. Clear systems and visibility across leave, pay, along with compliance will help reduce administrative risk and support employees during parental leave transitions.
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