Paid parental leave (PPL) has recently undergone changes that give parents greater help, however, a large chunk will be implemented in the years to come. What you need to know about the changes is outlined here.

Extended PPL duration

After July 1, 2023, parents who gave birth to a child or adopted a kid are eligible to apply for up to 20 weeks of PPL; starting in July 2024, the length will increase to 22 weeks. It increases to 24 weeks starting in July 2025, then 26 weeks starting in July 2026.

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Sharing the leave

Notably, not all the weeks can be utilised by one parent. Several weeks are designated for the second parent to promote shared parental leave. For the current year and 2024-25, two weeks are reserved for the second parent, and these cannot be transferred to the primary caregiver if unused. From July 2025, at least three weeks must be taken by the second parent, and from July 2026, four weeks are set aside for them.

Encouraging dads to take leave

The initiative to allocate some weeks exclusively for the second parent aims to encourage more fathers to take parental leave. This change is in line with efforts to promote gender equality in caregiving.

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Flexibility in using PPL

Apart from the reserved weeks for the second parent, the remaining PPL can be divided between parents according to their preferences, ensuring flexibility that suits their family dynamics.

No superannuation included

Despite calls for superannuation to be included in government-paid parental leave to bridge the retirement savings gap between men and women, it remains absent from the program. The government supports this policy in principle but currently cannot afford to implement it due to budgetary constraints.

Eligibility criteria

Government support for PPL depends on the combined income of the parents. Couples with a combined income under $350,000 receive the full 20-week (increasing to 26 weeks by 2026) benefit. If their combined income exceeds this threshold, the majority of the leave can be allocated to one parent if their income is less than $168,865. Single parents are eligible if their income is less than $168,865.

In addition to income requirements, parents should have worked for ten of the thirteen months preceding the birth or adoption of their child. Exemptions are considered in cases of pregnancy-related illness, complications, or premature birth.

These adjustments in paid parental leave aim to provide greater support for parents while encouraging shared caregiving responsibilities and ensuring eligibility based on income and work history.