Paid Parental Leave Goes to 26 Weeks in 2026: Everything You Need to Know
Australia's government-funded Paid Parental Leave scheme expands to 26 weeks from 1 July 2026. Here's who's eligible, how the use-it-or-lose-it allocation works, income tests, and how to apply.
Rachel Morrison
Senior Workplace Relations Writer · GradDip Employment Relations, Griffith University
26 weeks of government-funded parental leave: here's the deal
From 1 July 2026, the government's Paid Parental Leave (PPL) scheme increases to 26 weeks (130 payable days) for children born or adopted on or after that date. This is the final step in the expansion that started rolling out from July 2023, when the scheme was at 20 weeks.
The payment is made at the national minimum wage rate — currently $915.90 per week before tax (based on the 2025-26 rate; the July 2026 rate will be updated after the Annual Wage Review). That works out to roughly $23,813 over the full 26 weeks at current rates.
This is taxpayer-funded leave paid by Services Australia (Centrelink), not your employer. It's separate from any paid parental leave your employer might offer on top. So if your employer gives you 12 weeks' paid parental leave at full salary, you can potentially get that plus the 26 weeks of government PPL — though you can't take them at the same time (more on that below).
It's one of the biggest expansions of workplace entitlements in years. If you're planning a family, you need to understand how it works.
The use-it-or-lose-it allocation: 4 weeks reserved per parent
Here's the bit that catches people out. The 26 weeks isn't a free-for-all where one parent takes the lot. 4 weeks are reserved on a "use-it-or-lose-it" basis for each parent.
What that means:
- Each eligible parent gets 4 weeks that only they can use — if they don't take it, it's gone. Can't be transferred to the other parent
- The remaining 18 weeks is a shared pool that can be split between parents however they want, or one parent can take all 18 weeks
- So in practice: Parent A could take 22 weeks (4 reserved + 18 shared) and Parent B takes their 4 reserved weeks. Or they split it more evenly — 17 and 9, or 13 and 13
The whole point of the reserved weeks is to encourage both parents to take time off. The evidence is clear that when dads and partners take parental leave, it improves outcomes for kids, reduces the gender pay gap, and leads to more equal sharing of caring responsibilities long-term.
For single parents, the full 26 weeks is available to the sole eligible parent. You don't lose the reserved weeks just because there's no second parent to claim them.
Who's eligible: the income test and work test
To get government PPL, you need to meet both an income test and a work test.
Income test: Your individual adjusted taxable income must be $168,865 or less in the financial year before the birth or adoption (2025-26 threshold — this is indexed each year). If you earn over that as an individual, you don't qualify. There's also a family income test of approximately $350,000 combined that applies as a secondary threshold.
Work test: You must have worked for at least 10 of the 13 months before the birth or adoption, and performed at least 330 hours in that 10-month period (roughly one day a week). This can include paid employment, self-employment, or a combination. There are also exceptions for people who couldn't work due to pregnancy complications, premature birth, or dangerous jobs.
You must be an Australian resident and the primary carer of the child during the PPL period. Both employees and self-employed people can qualify — you don't need to have a traditional job.
If you're not sure whether you qualify, Services Australia has an eligibility estimator on their website, or you can call them on 136 150.
How to apply and when to do it
You can claim PPL through your myGov account linked to Centrelink (Services Australia). Here's the timeline:
Before the birth: You can submit an early claim up to 3 months before your expected due date. This is a good idea because it means everything is ready to go when the baby arrives. You'll need to provide your expected due date, details of your recent work history, your income information, and your employer's details.
After the birth: You need to finalise your claim within 12 months of the birth or adoption, but the sooner the better. You'll need to provide proof of birth (usually the birth registration) and confirm your caring arrangements.
Flexible access: Under the current scheme, PPL can be taken flexibly — you don't have to take all 26 weeks in one block starting from the birth date. You can take it in blocks, on specific days of the week, or spread it out over the first 24 months of the child's life. This is genuinely useful — it means a dad could take 2 weeks at birth, then take a day a week for 10 weeks later, then take another block when mum goes back to work.
The flexibility provisions were introduced in July 2023 and have been a game-changer for families who want to share the caring.
Employer top-up: how it stacks with your workplace scheme
Government PPL is a minimum. Heaps of employers offer their own paid parental leave on top. Some examples of employer schemes as of 2026:
- Australian Public Service — 18 weeks at full pay (on top of government PPL)
- Major banks (CBA, ANZ, Westpac, NAB) — 12-16 weeks at full pay
- Large tech companies — varies, but some offer 20+ weeks
- Many SMEs — nothing above the government scheme
If your employer offers paid parental leave, you generally can't receive government PPL at the same time — but you can take one after the other. So you might take 12 weeks of employer-paid leave at full salary, then 26 weeks of government PPL at the minimum wage rate. That's 38 weeks of paid leave all up.
Some employers "top up" the government PPL rate to your full salary. In that case, the employer pays the difference between the government rate and your normal pay. Check your employment contract or enterprise agreement to see what your employer offers.
Your employer must keep your job open while you're on parental leave (or provide a comparable position) under section 84 of the Fair Work Act. This applies for up to 12 months of unpaid parental leave on top of any paid leave you take.
Keeping in touch days and returning to work
While you're on parental leave (paid or unpaid), you can work up to 10 "keeping in touch" (KIT) days without it affecting your leave or your PPL payments. KIT days let you stay connected to your workplace — attending team meetings, training sessions, planning days, or just easing back in before your formal return.
KIT days are voluntary for both you and your employer — neither party can force the other. You must be paid for KIT days at your normal rate, and they don't extend your leave period. You can take them any time during your leave except in the first 14 days after the birth (that's a mandatory rest period).
When you're ready to return, you need to give your employer at least 4 weeks' written notice of your intended return date. If you want to come back on a part-time basis, you can make a formal flexible work request under section 65 of the Fair Work Act — and as a parent of a child under school age, you're in one of the eligible categories.
Your employer can't refuse your return to work just because they hired someone to cover your role. Your position is protected. If your exact position no longer exists due to a genuine restructure, they must offer you a comparable position in terms of status, pay, and location.
Use our parental leave tool to work out your entitlements and plan your leave.
Try these free tools
Official resources
General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.
Related articles
From 1 July 2026, government-funded Paid Parental Leave expands to 26 weeks — up from 22 weeks. Here's who qualifies, the income test ($175,088), how to split between partners, 'use it or lose it' reserved days, and what employers need to do.
Enterprise Agreement vs Award — What's the Difference?Enterprise agreements and Modern Awards both set workplace conditions, but they work differently. Learn the BOOT test, how EAs are made, zombie agreements, and how to check which applies to you.
National Employment Standards (NES) — Complete Summary of Your 11 RightsThe NES gives every Australian employee 11 minimum workplace rights. Here is a plain-English summary of each entitlement — maximum hours, leave, flexible arrangements, termination, and more.
Right to Disconnect Australia — What the New Law Means for YouAustralia's right to disconnect law lets employees refuse unreasonable out-of-hours contact. Learn who it covers, what counts as unreasonable, and how the FWC enforces it.
About Rachel Morrison
Rachel spent nine years in HR advisory roles across retail and hospitality before moving into workplace compliance writing. She holds a Graduate Diploma in Employment Relations from Griffith University and has a particular interest in award interpretation and underpayment issues. Based in Brisbane.
About our editorial process →