Global Compliance- Australia
Australia: Amendments to Paid Parental Leave
Australia’s Paid Parental Leave (PPL) has undergone significant legislative reforms since July 1, 2023, introducing greater flexibility, gender equality, and extended entitlements for working families. The changes reflect the federal government’s commitment to modernizing parental leave to support caregiving responsibilities more equitably between both parents.
The schedule for expanded PLP entitlements is as follows:
- For children born or adopted between July 1, 2024, and June 30, 2025: up to 110 days (22 weeks) of paid parental leave
- For children born or adopted between July 1, 2025, and June 30, 2026: up to 120 days (24 weeks)
- For children born or adopted on or after July 1, 2026: up to 130 days (26 weeks)
The key changes to Paid Parental are as follows:
Currently, eligible employees are entitled to receive government-funded Paid Parental Leave for a total of 22 weeks to care for a newborn or newly adopted child. This leave can be shared equally between both parents.
As a total leave entitlement, 10 days are reserved exclusively for each partner and cannot be transferred. In addition, both parents are allowed to take up to 10 days of Paid Parental Leave at the same time.
Effective July 1, 2025, eligible employees with children born or adopted on or after this date will be entitled to a government-funded parental leave allowance of 24 weeks (equivalent to 120 days, based on a five-day workweek). This benefit can be shared between both parents, allowing each to receive paid parental leave.
Also, the number of non-transferable days reserved for each parent will increase to 15 days. Additionally, both parents will have the option to take Paid Parental Leave simultaneously for up to 20 days.
Take away- Employers must take proactive steps to comply with this amendment and must review and update their parental leave policies at the earliest to align with the changes in the law.
