New Parental Leave Laws HR Leaders Should Know

Last updated July 22, 2026

Key Takeaways

• From 1 July 2026, Australia's government-funded Paid Parental Leave (PPL) reaches its final expansion stage: 26 weeks (130 days), up from 24 weeks (120 days).
• For the first time, the ATO pays a 12% superannuation contribution on government-funded PPL, helping close a long-standing retirement savings gap for parents who take time off to care for a newborn.
• The leave reserved specifically for the second parent has grown too, encouraging more balanced, shared caregiving from the start.
• These changes land alongside Payday Super and a national wage increase, both also effective 1 July 2026, adding complexity to payroll and leave administration.
• Government support is more generous than ever, but time and money alone don't guarantee a confident return to work. Structured, personalised support before, during and after leave is what actually drives retention.

A Lot Is Changing for Australian Parents on 1 July 2026

The new financial year has landed and with it, a wave of changes to pay, tax, superannuation and parental leave. For HR leaders, this year's changes are particularly significant. The federal government's three year phased expansion of Paid Parental Leave has reached its final milestone, superannuation is now paid on government leave payments for the first time, and Payday Super has fundamentally changed how employers manage super contributions.

For soon-to-be parents in your workforce, this is genuinely good news. More weeks of paid leave, more super protection, and more flexibility mean less financial pressure during one of life's biggest transitions. For HR teams, it's a good moment to check that policies, payroll systems and manager guidance are all up to date, and to think about what meaningful support looks like beyond what the government now provides.

What's New: Australia's Parental Leave Entitlements From 1 July 2026

1. Paid Parental Leave Reaches 26 Weeks

From 1 July 2026, families welcoming a child receive 130 days of government-funded Parental Leave Pay, equivalent to 26 weeks under a standard five day week, up from 120 days (24 weeks). This is the third and final stage of a reform that began in 2023, when Paid Parental Leave sat at 20 weeks. Payments are made at the national minimum wage rate and can be taken flexibly in blocks as short as a single day, provided the leave is used within 24 months of the birth or adoption.

2. Superannuation Is Now Paid on Government PPL

For children born or adopted from 1 July 2025, the ATO pays a 12% superannuation contribution on Parental Leave Pay, known as the Paid Parental Leave Superannuation Contribution (PPLSC). These contributions start landing in parents' nominated super funds from July 2026, automatically, with no extra claim required. This is a genuinely structural change: it's the first time Australia's PPL scheme has included a retirement savings component, and it's designed to help close the gap in super balances that disproportionately affects women who take career breaks to care for children.

3. More Leave Reserved for the Second Parent

The amount of leave reserved specifically for the second parent, on a use it or lose it basis, has also increased as part of this final expansion stage, encouraging couples to share the caring load more evenly in a child's first year.

4. Flexible and Unpaid Leave Settings Continue to Evolve

Separate to government-funded PPL, the Fair Work Act gives eligible employees up to 12 months of unpaid parental leave, with the right to request a further 12 months. Reforms since 2023 removed the cap on couples taking leave concurrently, allowed up to 10 keeping in touch (KIT) days in the first 12 months of leave, and expanded the amount of unpaid leave that can be taken flexibly, rather than in one continuous block, so that it aligns with the growing PPL entitlement. None of this unpaid leave is new for 2026, but it's worth revisiting alongside the PPL changes, since employees and managers often confuse the two schemes.

5. Payday Super Changes How Employers Pay Super

From 1 July 2026, employers must pay superannuation guarantee contributions at the same time as wages, whether that's weekly, fortnightly or monthly, rather than quarterly. Contributions must reach an employee's super fund within seven business days of each payday. This doesn't change the 12% super rate itself, but it does mean payroll teams need systems that can keep pace, including for any employees returning from or heading into parental leave.

6. Wages Are Rising Too

The Fair Work Commission's Annual Wage Review lifted award rates and the National Minimum Wage from 1 July 2026, which flows through to how PPL payments (paid at the minimum wage rate) and any employer-topped-up parental leave pay are calculated for the new financial year.

Is Government Support Enough? Career Money Life Parental Leave

These 2026 reforms are a genuine step forward for Australian families. More paid weeks, stronger super protection, and reserved partner leave all ease the financial pressure of welcoming a child, and encourage parents to share the caring load from the start.

But legislation can only go so far. It doesn't address the identity shift of becoming a parent, the anxiety of handing a role over for months, or the confidence it takes to walk back into work and pick up where you left off. That gap is what employers are left to fill, and it's exactly where the best organisations choose to show up.

So it's worth asking: are your parental leave benefits doing enough for your people?

Meaningful support goes beyond time and money. Personalised, intentional support through the whole transition, before, during, and after leave, is what signals an organisation truly cares, and it's one of the strongest drivers of retention for returning parents.

Career Money Life Offers Support for the Full Parental Journey

Foundation: Building Readiness Before Leave

Before leave even begins, we help employees think through what parenthood means for them, working through mindset, confidence, and any worries about stepping away from their role, so leave feels like a natural next chapter rather than a disruption. 

At the same time, we work alongside leaders and HR to get expectations and communication plans aligned, so nothing falls through the cracks once leave starts.

Preparation: Planning the Handover

This is where the practical work happens. Employees and their managers map out a clear transition plan together, with milestones, clear ownership, and regular check-ins along the way. 

We also help think through risks and contingencies early, so the handover feels considered rather than rushed, and the path back to work is already taking shape before leave even begins.

During and After Leave: Staying Connected

Support doesn't stop once leave starts. Regular coaching and check-ins help employees stay grounded through the change and rebuild confidence as their return gets closer, while managers get guidance on keeping the connection alive and the team steady in the meantime. 

A phased return then eases employees back in gradually, so reintegration feels manageable rather than overwhelming.

How We Help

• Coaching: Support from pre-leave to return, with access to a diverse pool of approved Parental Leave Coaches. 
• ParentHub OnDemand: Microlearning resources including videos, podcasts, eBooks, articles, and TED Talks. 
• CareerCanvas Assessment & Debrief: Covers workstyle, strengths, values, and stress styles, with insights feeding into coaching and goals.
• My Goals Tool: Wheel of Life reflection to identify priorities, set goals, and track progress with coach support.
• Live Sessions: Weekly sessions on wellbeing, career, and finance - such as Goal Getters, Mindfulness, and Stress Management.
• Marketplace: Credits unlock trusted services - from baby sleep experts to upskilling courses and estate planning.

Frequently Asked Questions

What is changing with Paid Parental Leave from 1 July 2026?

Government-funded Paid Parental Leave increases from 120 to 130 days (24 to 26 weeks) for children born or adopted from that date. This is the final stage of a phased expansion that began in 2023.

Does superannuation now apply to Paid Parental Leave payments?

Yes. For children born or adopted from 1 July 2025, the ATO pays a 12% superannuation contribution on PPL payments directly into the recipient's super fund. These contributions begin flowing from July 2026.

How much leave is reserved for each parent?

As part of the final expansion stage, the amount of leave reserved specifically for the second parent, on a use it or lose it basis, has increased, encouraging more balanced sharing of caring responsibilities.

Do employers need to do anything to implement these changes?

PPL is funded and administered by Services Australia and the ATO, so there is no direct cost to employers. That said, HR and payroll teams should update parental leave policies and guidance to reflect the new day counts, and ensure payroll systems are ready for Payday Super, which changes how and when the standard super guarantee is remitted.

Is unpaid parental leave changing too?

Unpaid parental leave under the Fair Work Act (up to 12 months, with a further 12 months available on request) isn't new for 2026. However, related settings such as concurrent leave, keeping in touch days, and flexible leave taken outside a continuous block have been reformed in recent years and are worth revisiting alongside the PPL changes.

How is government PPL different from company-paid parental leave benefits?

Government PPL is a fixed, taxpayer-funded payment made at the minimum wage rate. Many Australian employers also offer their own paid parental leave on top of this, at their own rates and conditions. The two entitlements typically run alongside each other, so employees can access both.

How is Career Money Life's support different from the statutory leave changes?

The 2026 reforms improve the pay, super, and time employees receive. Our program addresses what legislation doesn't: the mindset shift into parenthood, the handover to colleagues, and the confidence to return and reintegrate. It's designed to sit alongside whatever government and employer-paid leave an employee is taking, not replace it.

Can employees access support if they're only taking unpaid leave, or a shorter period?

Yes. The program is designed to flex around each family's situation, whether that's the full 12 months of unpaid parental leave, a shorter return, or leave taken flexibly in blocks. Support is personalised to the individual's circumstances and timeline, not tied to a fixed leave length.

About the Author

Sandy Hutchison | CEO and Founder, Career Money Life

Sandy is a leading Australian HR professional and thought leader on career transition, coaching, and organisational change. As the founder of Career Money Life, she has dedicated her career to humanising the redundancy process, giving individuals the agency, structure, and choice they need to move forward with confidence, care, and purpose. She is a specialist in the people pillar of organisational change, with deep expertise in wellbeing, coaching, and marketplace-driven transition solutions.

linkedin.com/in/sandyhutchison