A growing family is exciting. But between preparation classes, ongoing appointments and finding time to buy everything you need, the lead-up to your little one’s arrival can feel overwhelming.
If you are expecting a child in the second half of 2026, you will have access to the most comprehensive government-funded parental leave entitlement to date: 26 weeks, paid at the minimum wage, with superannuation on top. If your child is born or adopted before 1 July 2026, you will be entitled to 24 weeks (120 days) under the current scheme. The 26-week entitlement only applies to children born or adopted on or after 1 July 2026.
Understanding this milestone matters, because the financial decisions you make around parental leave can shape your family’s security for years to come.
How much paid parental leave can you get from 1 July 2026?
Whether this is your first child or not, Paid Parental Leave scheme (PPL) can be complicated. The scheme was introduced in 2011 and offered 18 weeks of PPL. In 2023 the Australian Government introduced the Paid Parental Leave Amendment (More Support for Working Families) Act 2023, which reaches its final expansion on 1 July 2026. Here is a breakdown of what you need to know.
Any parent of a child born or adopted on or after the 1 July 2026 will be entitled to 26 weeks (130 pay days) at the current national minimum wage ($24.95 per hour or $948 per week before tax). This equates to $24,648 before tax, or approximately $822.10 a week after tax (please note that this is an estimate and is dependent on your income in the financial year). Please note that the Fair Work Commission does an annual review, so these rates may change.
If you are a single parent, you will receive all the PPL days, although you can choose to share some of these days with the other parent. For partnered parents, 20 days of the PPL will be reserved for each partner. These days are under a ‘use it or lose it’ basis, if one parent decides not to use their days, these days are forfeited and cannot be transferred to the other parent.
Here is what to keep in mind when choosing how to take your days. Both parents are able to take 20 days concurrently, allowing them to bond with their child. From there, these days can be claimed as a single block, multiple smaller blocks, single days or a combination. These can also be changed while receiving payments.
Who is eligible for paid parental leave?
To be eligible for this PPL you must be a parent by birth (or the partner of the mother or father), adoption, surrogacy or other exceptional circumstances (where you will be the primary carer of the child for half of their first year). If you fall under one of these categories, you will need to meet a few other tests.
What is the income test for paid parental leave?
To be eligible for PPL your income must be below a certain amount. This test is drawn from either the financial year before the date you claim or the birth of your child, whichever is earlier. Alone, as of the 2025-2026 financial year, you must earn $180,007 or less or as a family you earn $373,094 or less within that financial year. Please not that these thresholds are indexed every year, please check Services Australia to find out the most up-to-date figures.
Do I meet the work test for paid parental leave?
Both the birth parent and their partner must meet the work test. This also applies to adoptive parents, gaining parents in a surrogacy arrangement and their partners. Visit the Services Australia website for details on specific circumstances.
To meet the work test you must have worked for 10 of the 13 months before the birth or adoption of your child, within this time frame you must have worked 330 hours (this is approximately one day a week).
Services Australia counts a ‘work day’ as any day you performed at least one hour of paid work. Paid leave days, such as sick leave, annual leave and paid maternity leave, also count toward the work test.
What are the residency requirements for paid parental leave?
You must be an Australian citizen, permanent visa holder, special category visa holder (e.g. New Zealand citizens) or hold certain temporary visas. If you have recently arrived in Australia on a qualifying visa, a two-year waiting period may apply. You must meet the residency requirements on the day of your child’s birth or adoption, and on each day you claim PPL.
How does superannuation work on paid parental leave?
Another recent change is, as of 1 July 2025, 12% superannuation will be paid on PPL payments. Women are more likely to take PPL, which has historically contributed to a gap in retirement savings. According to the Super Members Council, by their early 60s, the median super balance for women is around $51,000 lower than for men. The new super-on-PPL provision is designed to help close this gap.
This super will be paid by the ATO directly to the employee’s superfund as a lump sum at the end of the financial year. On the full 26-week entitlement, this adds approximately $2,950 to your super fund. If you are sharing your PPL with another person, the super contribution will be calculated based on their portion of PPL.
Paid parental leave and your workplace
If you are going on PPL, the payments will typically be provided through your employer. If you are self-employed, Services Australia will pay your PPL directly to you. There are a few considerations for both you and your employer.
What are your obligations as an employer under the PPL scheme?
If you are an employer, you play a very important role within the PPL scheme. You will need to register your business with Services Australia through their online Business Hub. This involves setting up a PRODA account (the government’s secure login system) and registering for the PPL scheme. This will provide you with the ability to maintain your records while your employee is on leave.
Services Australia, with a record of your pay cycle, will provide the payment to the businesses accounts before the pay-cycle is booked to go out. This will ensure that you are not required to use your own funds.
You will need to make the typical deductions from your employees PPL. This includes Pay-as-you-go (PAYG) withholdings, child support and any other contributions.
For your business records, PPL payments you receive from the government on behalf of your employee are treated as a liability, not income. You will also need to include them in your tax return. Your accountant can help you get this right. For more in depth information about your role in the PPL scheme please read the Paid Parental Leave scheme Employer Toolkit or reach out to your Moore Australia Advisor.
How does paid parental leave affect your job and return to work?
If your employer offers its own paid parental leave, you can receive it alongside government PPL. The two can run at the same time or back to back. The government PPL is separate from your employer, so you can claim any leave, from employer funded PPL, annual leave or long-service leave without it impacting your government PPL.
If you are planning to work while on PPL, such as sitting in on a meeting, doing job training, reacquainting yourself with your workplace before you return, there are some considerations to take into account.
You will need to adjust your payment to another day when you will not be working. Although there are a few situations where you may be able to work. These include complying with a court ordered summons, a compulsory recall to duty within defence force or law enforcement, or are an essential worker responding to a state, territory or national emergency.
Under the Fair Work Act, employees are entitled to 12 months parental leave, with the ability to have an additional 12 months (you must request this from your employer at least 4 weeks before the end of your first leave period). During this time you have a return to work guarantee, this means you have the right to return to the position you held before you left, or if that position no longer exists you will be given a role nearest the status and pay to your previous position.
How to plan your finances before going on paid parental leave
When it comes to entering PPL, it is important to prepare yourself and your family for the change in your financial situation. Here is a short checklist of things to do to claim.
- Talk to your Employer: there is no defined time you must tell your employer that you are having a child. But it is recommended that you tell them at least 10 weeks before the birth or adoption.
- Make the Claim: you can claim PPL up to three months before your expected due date. Once your child is born or adopted, you must provide proof to Services Australia within 56 days. To receive PPL from your child’s date of birth, you will need to have submitted your claim and proof of birth within 100 days. All PPL days must be used before your child’s second birthday (or the second anniversary of their adoption).
- Adjust your Budget: your PPL will now be your taxable income. It is important to understand and plan for your changes. This is a simple and clear budget planner: Budget planner – Moneysmart.gov.au
- Check any Other Payments you Might be Eligible for: you may also be eligible for family tax benefits, parenting payments or rent assistance.
Get help with your paid parental leave planning
Having a child is a really exciting time, but it is also a good time to check that your family’s finances are set up to make the most of these changes. Moore Australia is here to help.
If you are unsure how these changes affect your family’s tax position, or if you need help estimating your entitlement and choosing the right payment frequency, your local Moore Australia adviser can walk you through it. Get in touch today.
