Paid Parental Leave changes from 1 July 2026

 

From 1 July 2026, eligible parents can access up to 130 days (26 weeks) of government-funded Paid Parental Leave. This is an increase from the current 120 days and applies to children born or adopted on or after this date.

The scheme continues to support shared care. Where both parents are eligible, a portion of the leave is reserved for each parent, encouraging both to take time off to care for their child. A key change is the introduction of superannuation on Paid Parental Leave. Contributions will be paid by the Australian Taxation Office after the end of the financial year. This supports employees’ long-term retirement savings while they are on leave.

While the scheme is government-funded, these changes are important for employers. They may affect workforce planning, employee expectations and return-to-work arrangements.

Understanding the full leave entitlement

In addition to Paid Parental Leave, employees may be entitled to up to 12 months of unpaid parental leave under the Fair Work Act, with the option to request a further 12 months.

This means employees can be away from work for up to two years in total. The paid component forms part of this overall period, not in addition to it.

Employees may also request to use accrued annual leave or time off in lieu to extend their time away from work. These arrangements are subject to employer approval and business needs.

Clear communication around parental leave arrangements is important. Early discussions can help both the employee and employer plan for extended absences.

Find more information:
https://www.servicesaustralia.gov.au/parental-leave-pay