Paid Parental Leave 2026: 26 Weeks From July

Paid Parental Leave increases from 22 weeks to 26 weeks total from 1 July 2026. This is the final step in the gradual expansion from the original 18 weeks. Both parents can share the 26 weeks, with a use-it-or-lose-it component encouraging both parents to take time off.

The rate stays at the national minimum wage: $969 per week before tax (as at July 2026). That means 26 weeks of PPL pays $25,194 gross — or approximately $21,400 after tax depending on your other income.

This is separate from any employer-funded parental leave, which sits on top of the government scheme.

To qualify, you must meet the work test and the income test.

Work test: You must have worked for at least 10 of the 13 months before the birth or adoption, and worked at least 330 hours in that 10-month period (roughly 1 day per week). Self-employment counts.

Income test: Your individual adjusted taxable income must be under $175,000 in the previous financial year. Note: this is your income, not household income. A couple earning $170,000 each both qualify individually.

You must also be the primary carer of the child and be an Australian resident.

From 1 July 2025, the government pays 12% superannuation on top of your PPL. This is a significant change — previously, government PPL attracted zero super.

On 26 weeks of PPL ($25,194), that's an extra $3,023 into your super fund. Over a career with two children, that's roughly $6,000 in super contributions that previously didn't exist — which compounds to $15,000-$20,000 by retirement.

This closes part of the super gap that primary carers (mostly women) have historically faced due to time out of the workforce.

Stack government + employer leave: Many employers offer 8-18 weeks of paid parental leave at your full salary. This runs concurrently or sequentially with government PPL. If your employer gives 12 weeks at full pay plus 26 weeks government PPL, you have 38 weeks of paid leave.

Use annual leave strategically: Accrued annual leave doesn't expire while you're on parental leave. Taking 3-4 weeks of annual leave at full pay before or after PPL extends your total paid period. At $85,000 salary, 15 days of annual leave adds roughly $4,904.

Time your return: If you return to work part-time, you can stretch PPL by taking it on part-time days. For example, work 3 days and take PPL for 2 days — your 26 weeks of PPL lasts 65 weeks calendar time.

PPL pays $969/week regardless of your salary. For someone on $60,000 ($1,154/week gross), that's an 84% income replacement — very liveable. For someone on $120,000 ($2,308/week gross), it's only 42% — a significant pay cut that requires planning.

This is why employer parental leave matters so much. The gap between your regular income and PPL is what employer leave bridges. Our Parental Leave Calculator shows your exact income replacement rate and total payments when you combine all sources.

Budget for the gap early. Many parents save into a dedicated account in the months before the baby arrives to cover the income drop. Even 3-6 months of the difference makes a massive quality-of-life improvement during leave.