Paid Parental Leave in 2026: what changes on 1 July

If you're planning to have a baby around 2026, the rules you grew up hearing about no longer apply. The government's Paid Parental Leave (PPL) scheme has been expanding in stages, and 1 July 2026 marks the final step — alongside a change that quietly fixes one of the scheme's biggest weaknesses.

1. The scheme reaches 26 weeks

From 1 July 2026, eligible families can access 26 weeks (130 days) of government-funded Paid Parental Leave. That's the top of a staged climb that started back when the scheme offered just 18 weeks. It's paid at the National Minimum Wage, separately from any paid parental leave your employer offers — so for many families the two stack together.

2. Super is now paid on PPL

This is the change that matters most for the long term. Historically, taking time out to raise children left a dent in retirement savings, because no super was paid while you were on government leave. From 2026 the government pays superannuation on top of your PPL at the standard rate. It won't erase the career-break gap entirely, but it meaningfully narrows it — especially for mothers, who take the lion's share of parental leave.

3. Both parents can share it

The 26 weeks can be shared between eligible parents, with a portion reserved for each on a "use it or lose it" basis — a deliberate nudge to get both parents taking time off rather than defaulting to one. Single parents can access the full entitlement themselves.

What this means for your budget

More weeks and super are welcome, but the scheme still pays at the minimum wage, so most households on an average or above-average income will see take-home drop during leave — particularly in the government-funded weeks after any employer top-up ends. The key isn't the headline total; it's the shape of the income across the leave, and where the lean stretch falls.

Three things are worth doing before the baby arrives:

• Check your eligibility against the work test and income test — these are reviewed each year, so confirm the current thresholds with Services Australia.
• Read your employer's policy in writing — the number of weeks, the pay rate, and whether they pay super on their own paid leave are the three figures that move your outcome the most.
• Map your take-home week by week so the lower-income period doesn't catch you out, and build a small buffer in the months beforehand.

None of these numbers are set in stone — rates change each year and the fine print of eligibility is genuinely fiddly — so treat any estimate as a planning tool, confirm the current figures with Services Australia and the ATO, and speak with a financial adviser if a career break will stretch your finances.