What's Changing from 1 July 2026 — and What You Need to Know

Australia's government-funded Paid Parental Leave (PPL) scheme is undergoing its most significant expansion in years. From 1 July 2026, eligible families will be entitled to 26 weeks of government-funded paid leave, up from 24 weeks, and a number of other changes take effect. This article explains the current rules, what's changing, and how the changeover date works.

The Current Rules (before 1 July 2026)

For children born or adopted between 1 July 2025 and 30 June 2026, the following rules apply:

- Eligible families receive 24 weeks (120 days) of Parental Leave Pay
- Payment is made at the National Minimum Wage, approximately $948.10 per week before tax (based on the January 2026 rate)
- Parental Leave Pay is assessable income and must be declared in the recipient's tax return
- Three weeks are reserved for the non-birth parent/partner on a 'use it or lose it' basis
- Single parents can access the full entitlement
- For children born or adopted from 1 July 2025, a 12% superannuation contribution is paid by the ATO directly into the recipient's super fund after the end of the financial year

 

What's Changing from 1 July 2026

The 1 July 2026 changes are the third and final stage of a phased expansion that began in 2024. The key changes are:

1. Duration increases to 26 weeks

From 1 July 2026, eligible parents can access 130 days (26 weeks) of government-funded Parental Leave Pay, an increase of 10 days (2 weeks) from the current 120 days.

2. Partner reserve increases to 4 weeks

The 'use it or lose it' reserve for the non-birth parent or partner increases from three to four weeks (20 days). These days must be taken before the child's second birthday. They do not need to be taken consecutively and can be broken into single days or smaller blocks. If the partner does not take their reserved weeks, those days cannot be transferred to the primary carer; they are simply forfeited. Single parents can access the full 26 weeks.

3. Superannuation on PPL continues

This was introduced for children born or adopted from 1 July 2025 and continues under the new rules. The ATO pays a 12% superannuation contribution on Parental Leave Pay directly into the recipient's super fund after the end of the relevant financial year. No action is required by the recipient, it is paid automatically. Where Parental Leave Pay is shared between two parents, each person receives a super contribution on their share.

The Critical Changeover Date

The date of birth or adoption is the determining factor, not when the claim is lodged.

For clients with pre-birth claims already submitted before 1 July 2026, Services Australia will automatically add the additional 10 days once proof of birth or adoption confirms the child arrived on or after 1 July 2026. There is no need to lodge a new claim.

Practical Scenarios
- Baby born 28 June 2026: 120 days (24 weeks) under current rules
- Baby born 1 July 2026: 130 days (26 weeks) under new rules
- Pre-birth claim lodged in May 2026, baby born 3 July 2026: 130 days, Services Australia automatically tops up the balance upon receiving proof of birth
- Adoption finalised 15 July 2026: 130 days under new rules

At a Glance: Before and After

How the Scheme Has Evolved

The 26-week entitlement is the result of a staged government rollout that began with the original scheme introduction in 2011:

Advocacy groups are already calling for the next step: 26 weeks per parent separately, which would align Australia more closely with countries like Sweden. This is not currently legislated.

Eligibility Checklist

To be eligible for Parental Leave Pay, applicants must generally meet all of the following:

- Be the primary carer of a newborn or newly adopted child
- Meet the individual income test ($168,865 ATI in the prior financial year) or the family income test ($368,865)
- Meet the work test: worked for at least 10 of the 13 months before the birth or adoption date, and worked at least 330 hours in that 10-month period, with no more than an 8-week gap between working days
- Be an Australian resident
- Not be on employer-funded paid leave at the same time as receiving government Parental Leave Pay (unless the employer has a formal arrangement)

Exemptions to the work test exist for pregnancy complications, caesarean births, hospitalisation following multiple births, stillbirths, and other specified circumstances.

For foster carers: government-funded PPL does not apply unless the placement is for adoption purposes through an authorised party.

Interaction with Employer-Funded Leave

Many employers offer their own top-up payments above the government scheme. In most cases, employees can receive both - but the timing and structure depend on the employment contract or enterprise agreement. Advisers should encourage clients to:

- Check whether employer-funded leave runs concurrently or consecutively with government PPL
- Understand whether employer payments are in addition to, or offset against, government PPL
- Review how any employer top-up interacts with the 'use it or lose it' partner reserve