Expanding Paid Parental Leave

Expanding Paid Parental Leave

Great news for families in Australia! The Paid Parental Leave (PPL) scheme is set to undergo its most substantial expansion since its inception in 2011. 

Starting from the 1st of July 2024, families will benefit from a gradual increase in the duration of paid parental leave with two additional weeks added each year. By 2026, the scheme will offer a full 26-week PPL, providing families with various benefits. 

Benefits for parents and families

The government policy to expand PPL aims to offer families greater flexibility and support, catering to diverse needs, alleviating the financial burden and advancing gender equality. 

The government emphasises that a parental leave system enabling both parents to equally share caregiving responsibilities, tailored to their individual needs will yield positive outcomes for every family member. Children will benefit from increased time with both parents, while parents maintain a healthy and balanced connection with their workplace, promoting overall family well-being and productivity. 

For instance, upon the arrival of a newborn or adopted child one parent might choose to take leave to care for the baby for a certain number of weeks. Upon their return to work, this parent may opt to take leave for two days a week, while the other parent takes leave for three days a week, allowing each to access a total of 11 weeks of leave. 


Families who meet the eligibility requirements will receive a weekly payment of $882.75, equivalent to five days of minimum wage. This will be available to new parents who have welcomed a newborn or adopted a child after July 2023. However, eligibility will depend on how much you and your partner earn. 

The expanded scheme is available for both parents if their combined income is less than $350,000. For households exceeding this income threshold, the majority of leave can be allocated to one parent earning less than $168,865. 

Single parents must also earn less than $350,000 to qualify for maternity leave payments. 

What about Super? 

The Australian Labor Party has stepped up its efforts to address the gender gap in retirement savings by announcing further plans to provide superannuation on government-funded parental leave. This move comes in response to calls from industry super funds, gender advocacy groups and government reviews. 

Currently, women retire with approximately 30% less in retirement savings than men, which translates to around $67,000. However, this new proposal aims to address this gap by providing an additional 12% superannuation on top of the government-funded parental leave to parents of babies born on or after July 1, 2025. This move is expected to make a significant difference in improving the retirement savings of women and reducing the gender gap in retirement.

More than 180,000 families are expected to benefit from the expansion each year, marking a significant step forward in supporting families and promoting gender equality in Australia. In a statement, Prime Minister, Anthony Albanese emphasised “A parental leave system that enables women’s full and equal participation will benefit businesses, families and our economy.” This highlights the crucial role of gender-inclusive policies in promoting societal well-being. 

If you have any questions about the expanding paid parental leave, please don’t hesitate to contact our team at 1800 618 800 or via email at admin@simmonslivingstone.com.au

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