Paid Parental Leave Is Now 26 Weeks: What Employers Need To Do

If you employ staff, you may have seen that the government's Paid Parental Leave scheme changed again on 1 July 2026. The headline is more leave for families, which is welcome news, and it raises a fair question for employers: what, if anything, do you need to do differently?

The short answer is less than you might expect. Most of the change sits with Services Australia and the ATO, not with you. There are a few things worth checking, so here's what lands on your desk.

What changed on 1 July 2026

For a child born or adopted on or after 1 July 2026, families can now access 130 days of Parental Leave Pay, which is 26 weeks based on a five-day week. That's up from 120 days, and it's the final step in a staged expansion.

A couple of other points came with it:

• In a partnered claim, 20 days are now reserved for the other parent on a use-it-or-lose-it basis, up from 15. These generally can't be transferred to the primary carer, and they're forfeited if the other parent doesn't use them.

• The remaining days can be shared between the parents in whatever split suits the family.

• Parents can now take up to 20 days at the same time, up from 10.

• Single parents receive all 130 days, and the reservation doesn't apply to them.

Parental Leave Pay is funded by the government and paid at the national minimum wage rate. Services Australia lists the current weekly and daily figures.

The three kinds of parental leave

This is where employers most often get tangled, because there are three separate things and they stack rather than compete.

1. Government Parental Leave Pay. Funded by the government, paid at the national minimum wage rate, and claimed through Services Australia. This is the scheme that just expanded.

2. Your own paid parental leave, if you offer it. Some employers pay their own parental leave, often at full salary, on top of the government payment. This is entirely your policy.

3. Unpaid parental leave under the National Employment Standards. Eligible employees can take up to 12 months and can request up to 24 months. This sits underneath the whole arrangement and hasn't changed.

Keeping these separate in your own mind makes the rest much simpler.

What you do as an employer

Two things are worth being clear on.

First, the paymaster role. For eligible long-term employees, you may pass on the government payment through your payroll for the first continuous block. Services Australia registers you for this and tells you the exact dates and amounts, and you withhold tax as you normally would. If Services Australia pays the employee directly instead, this doesn't fall to you at all.

Second, and this one saves a lot of worry: you do not calculate or pay superannuation on the government Parental Leave Pay. Since 1 July 2025, the ATO pays a 12% contribution on it directly to the employee's fund after the financial year ends. That part is handled for you. If you offer your own paid parental leave on top, how super applies to that payment is a separate question worth confirming.

A few things worth checking

If you'd like a simple way to make sure everything lines up, you might want to:

1. Update any parental leave policy, contract or handbook that names a set number of weeks, so it doesn't contradict the 26-week scheme.

2. Confirm your payroll process for passing on government Parental Leave Pay, including tax withholding, if you act as paymaster.

3. Point staff to Services Australia for eligibility, the income and work tests, and how to claim, rather than trying to work it out on their behalf.

4. If you provide your own paid parental leave, check how it interacts with the government payment and how super applies to your part.

Where this leaves you

For most small employers, this is a light-touch change. The leave is longer and more evenly shared, the super on the government payment is handled by the ATO, and your main job is keeping your policy and payroll aligned. Everything beyond that generally sits with Services Australia.

If you'd like help making sure your payroll handles government Parental Leave Pay correctly, or you're setting up your own paid parental leave and want the processing and super right, we're happy to work through it with you.

Disclaimer: This article is intended to provide general guidance and is not specific advice. We encourage you to seek tailored advice for your circumstances.