Happy New HR Year! Paid Parental Leave Changes

Entitlement in Increasing

The first big change is that the government‑funded entitlement is increasing to 26 weeks. That’s two extra weeks of leave available to eligible parents of babies born or adopted on or after 1 July 2026. Even though PPL is paid by the government, employees will still come to you with questions. It’s helpful to be across what’s changing.

1. The payment rate is also going up. Because PPL is tied to the National Minimum Wage, the new rate from 1 July 2026 will be $200.98 per day, or $1,004.90 per week. If an employee starts their leave before 1 July but continues it afterwards, the higher rate applies to any days taken after the change kicks in.
2. Another update is the introduction of 20 partner‑reserved days. These days can’t be transferred to the primary carer. They’re designed to encourage partners to take time off too. It’s a “use it or lose it” setup, so you may see more partners starting to access PPL.
3. Eligibility is also expanding. The income thresholds are increasing to $186,487 for individuals and $386,525 for families, which means more employees will qualify for government‑funded leave. This is particularly relevant for higher‑earning employees who may not have been eligible in the past.
4. And finally, superannuation is entering the picture. From July 2026, the ATO will begin paying a 12% super contribution on PPL for children born or adopted from 1 July 2025. Employers don’t pay this contribution, but employees may ask how it works, so again it’s good to be prepared.

For employers, the practical impact is mostly around communication and housekeeping.

• It’s a good time to refresh your parental leave policy, update payroll settings for the new rate. Make sure your managers know what’s changing so they can support employees confidently.
• With the expanded eligibility and partner‑reserved days, you may also see more staff accessing PPL. Early conversations and clear expectations will help you plan for potentially longer absences.

If you’d like help drafting or updating a policy, or learning more details about these changes, we’re here to help. Book in Now for a free Consultation (1300 474 672) and let us guide you.