Starting 1 July 2025, Australian families will benefit from significant enhancements to the Paid Parental Leave (PPL) scheme, as part of the Federal Government’s ongoing reforms aimed at improving support for working parents and promoting gender equity.

Key Changes for the 2025–26 Financial Year

Under the updated scheme, families will now be entitled to 24 weeks (120 days) of Paid Parental Leave—an increase from the previous 22 weeks. This change is expected to benefit around 180,000 families annually, offering more time for parents to bond with their newborns or newly adopted children.

In addition to the extended duration, the amount of leave that both parents can take simultaneously has doubled, rising from 2 weeks to 4 weeks. This allows for greater flexibility and shared caregiving responsibilities during the crucial early months of a child’s life.

Another major reform is the introduction of superannuation contributions on Paid Parental Leave. From 1 July 2025, eligible parents will receive a 12% superannuation contribution, aligned with the increase in the Superannuation Guarantee. These contributions will be paid directly to the parent’s nominated super fund after the end of the financial year, starting from July 2026.

The weekly payment rate has also increased, rising from $915.80 to $948.10, in line with the National Minimum Wage. Over the 24-week entitlement, this equates to a total increase of $775.20, providing additional financial support during parental leave.

What’s Ahead: Planned Changes for 2026

The reforms don’t stop in 2025. The Government has committed to further expanding Paid Parental Leave to 26 weeks (130 days) by 1 July 2026. This phased approach reflects a broader strategy to align Australia’s parental leave policies with international best practices and to support families more comprehensively.

The reserved leave for partners will also continue to grow, encouraging shared parenting and helping to address the gender gap in workforce participation and retirement savings.