Reforms to Paid Parental Leave introduced by the Federal Government will come into effect tomorrow, providing around 180,000 families each year with increased flexibility, more financial support, and stronger retirement security.
The changes will see the total amount of Paid Parental Leave rise from 22 weeks to 24 weeks, allowing parents two extra weeks at home with their newborns. The amount of leave both parents can take simultaneously will also double, increasing from two to four weeks.
“Working parents across Australia are eagerly awaiting the arrival of the newest additions to their families and to Paid Parental Leave reforms,” said Minister for Social Services Tanya Plibersek.
“Investing in more generous and flexible Paid Parental Leave is a no-brainer,” she said.
In a major change aimed at addressing the gender gap in retirement savings, superannuation will now be paid on government-funded Paid Parental Leave. A 12 per cent contribution—reflecting the new Superannuation Guarantee rate that also begins 1 July—will be deposited into each parent’s nominated super fund.
“For the first time ever, superannuation will be paid on Paid Parental Leave because Australian women told us they were worried about poverty in retirement and were sick of being penalised for parenting,” Plibersek said.
“It was a Labor Government – the Gillard Government – that introduced Paid Parental Leave in this country, and when the Liberals and Nationals had their chance they tried to roll it back.
“Only Labor will protect and expand Paid Parental Leave.”
Parents will also see a boost in the weekly payment rate. The payment will increase from $915.80 to $948.10, in line with the National Minimum Wage rise. Over the full 24-week period, this amounts to an extra $775.20.
Minister for Finance and Minister for Women Katy Gallagher said the changes are part of the Government’s broader efforts to centre women in economic policy.
“The Albanese Government has consistently put Australian women at the heart of what we do, and from July 1 they will be even better off,” she said.
“Last year, our Labor Government passed laws to have superannuation paid on government parental leave payments for the first time, and that will start from Tuesday.
“PPL was the only form of paid leave that did not have superannuation paid on it – the Albanese Government fixed this to ensure women are not financially penalised for taking time out to care for children.”
Assistant Minister for Social Services Ged Kearney said the reforms acknowledge the value of unpaid care.
“This change recognises that raising a child is not a break from work – it is work,” she said.
“Increasing Paid Parental Leave to 24 weeks and paying super on that leave sends a powerful message: caring for family should never come at the expense of your financial security later in life.
“It’s a step toward a more equal, compassionate Australia.”
Paid Parental Leave will continue to expand, reaching 26 weeks by 1 July 2026.
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