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Expanding paid parental leave

Cook AP

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The Albanese Government has legislated the biggest expansion of Paid Parental Leave since its introduction in 2011, extending the scheme to six months by 2026 and adding superannuation payments.

The government is progressively increasing Paid Parental Leave from 20 to 26 weeks, with two additional weeks added each year. From July 2024, parents receive 22 weeks of leave, and by July 2026, families will receive around $24,000 in government-funded parental leave for each child.

The changes also encourage more equal parenting, with four weeks reserved for each parent on a "use it or lose it" basis by 2026. Families will have greater flexibility, with parents able to take up to four weeks of leave simultaneously. These reforms will benefit around 180,000 families each year, representing a $1.2 billion investment in supporting Australian families.

From July 2025, parents will also receive superannuation contributions on their Paid Parental Leave for the first time, calculated at 12% of their payment. This reform particularly benefits women, who make up the majority of leave recipients, helping to address the gender gap in retirement savings. (See: Women - Paid Parental leave)

"From day one, we have strived to make the Paid Parental Leave scheme more flexible, accessible and gender equitable," Minister Rishworth said. "This historic expansion gives families the choice to use the scheme in the way that works best for them."



[1] https://alp.org.au/news/new-laws-expand-paid-parental-leave/

[2] https://ministers.pmc.gov.au/gallagher/2023/delivering-historic-expansion-paid-parental-leave

[3] https://ministers.pmc.gov.au/gallagher/2024/more-paid-parental-leave-australian-families-ever