Paid parental leave expands by two weeks in the lead up to 2026 target

The Australian Government’s Paid Parental Leave scheme has been expanded by two weeks, with parents (from 1 July 2024) now able to receive 22 weeks of Paid Parental Leave, up from 20 weeks previously. 

The scheme will continue to expand each year until the Government’s Paid Parental Leave scheme reaches 26 weeks in July 2026. When fully rolled out to 26 weeks, families will receive around $24,000 in government-funded parental leave.

By expanding the scheme to a full six months by 2026, families will receive an extra six weeks of paid leave following the birth or adoption of their child.

Superannuation will also be paid on Paid Parental Leave from July 2025, with legislation to be put to the parliament later this year. This will result in around $4,000 extra in the retirement incomes of parents who take time off to care for their newborn.

“From day one, we have strived to make the Paid Parental Leave scheme more flexible, accessible and gender equitable,” Minister for Social Services Amanda Rishworth said.

“This historic expansion is expected to benefit around 180,000 families each year, giving families the choice to use the scheme in the way that works best for them.”

As announced in the 2024-25 May Budget, the Government will also be investing $1.1 billion over four years from 2024-25 to pay superannuation on Government Paid Parental Leave from July 2025. 

Pending the passage of legislation, eligible parents with babies born or adopted on or after 1 July 2025 will receive an additional payment, based on the Superannuation Guarantee (12 per cent of their Paid Parental Leave payment), as a contribution to their nominated superannuation fund.

“Our changes to PPL are essential economic reforms that recognise that unpaid care is valued and necessary in our economy,” Minister for Women Katy Gallagher said. 

“This reform supports the sharing of care, while also giving women and families more choice and flexibility.”

More information on the changes to the Paid Parental Leave scheme can be found on the Department of Social Services website.