As of 1 July 2025, Australia’s Paid Parental Leave (PPL) scheme has had a long-overdue upgrade.

 

These changes are more than just policy tweaks; they represent a cultural shift towards valuing caregiving, addressing gender inequality, and helping families and workplaces thrive. But while the reforms mark significant progress, there’s still room to grow. And that’s where forward-thinking employers can make a powerful difference.

 

What’s Changed in Paid Parental Leave?

 

Here’s a breakdown of what’s been introduced as of 1 July 2025, with further expansion coming by July 2026:

 

1. More Paid Leave

 

• 24 weeks of government-funded Paid Parental Leave will be available (up from 22 weeks).
• By 1 July 2026, this will rise to 26 weeks.
• Leave is paid at the national minimum wage.

 

2. Superannuation Contributions Introduced

 

• 12% superannuation will now be paid on government-funded parental leave, a game-changer for women’s retirement savings.
• It applies to babies born or adopted on or after 1 July 2025.
• Contributions will be paid as a lump sum after the end of the financial year in which the leave is taken.

 

3. More Flexibility for Partners

 

• Concurrent leave doubles: Both parents can now take up to 4 weeks (20 days) together (previously 10 days).
• Reserved leave for partners increases from 15 to 20 days, encouraging active fatherhood and more balanced caregiving from day one.

 

But It’s Not Perfect Yet

 

Despite these advancements, challenges remain:

 

• 24–26 weeks is still well below the OECD average of 52 weeks.
• Paid leave at the minimum wage doesn’t provide enough income support for both parents to take leave together.
• Eligibility for the scheme is means-tested, so that higher-income families may miss out entirely on payments or superannuation contributions.

 

These shortcomings reinforce the need for employer-funded paid parental leave to supplement government provisions.

 

Why Employer-Led Policy Still Matters

 

Employers who go above and beyond the government’s minimum are setting the gold standard for family-friendly workplaces. These leaders understand that supporting caregiving is a strategic investment, not just a “nice-to-have.”

 

High-impact employer policies typically:

 

• Remove outdated labels like “primary” or “secondary” carer, ensuring equal access regardless of gender.
• Allow flexible leave use in blocks, part-time, or spread over a 24-month period.
• Include diverse families, including adoption, surrogacy, and foster care.
• Offer paid leave from day one of employment, with no 12-month waiting period.
• Pay superannuation on unpaid leave, not just paid.
• Provide transition coaching and return-to-work support, keeping employees connected and confident.

 

These are more than benefits; they’re retention, engagement, and equity strategies.

 

What Employers Should Do Now:

 

1. Update Your Internal Policies

 

• Align your HR documents and payroll systems with the legislative updates.
• Add superannuation to your existing paid parental leave offer to demonstrate your commitment to financial equality.

 

 

2. Normalise Shared Care

 

• Encourage both parents to take leave, especially the “use it or lose it” reserved days.
• Educate leaders and teams on the value of parental leave for fathers.

 

3. Measure What Matters

 

• Track leave uptake and return-to-work outcomes by gender to identify and close participation gaps.
• Benchmark your offer against industry best practices and the Family Friendly Workplaces Certification.

 

 

4. Communicate Early and Often

 

• Ensure employees understand eligibility criteria, such as the work test and income thresholds.
• Clarify the difference between government-funded and employer-funded parental leave.

 

Why These Reforms Matter Now More Than Ever

 

Paid parental leave is no longer a fringe issue; it’s a core gender equality, financial security, and workforce participation lever.

 

Research by the Workplace Gender Equality Agency (WGEA) and Parents At Work shows that access to quality paid parental leave directly impacts:

 

• Career progression
• Employee retention
• Family wellbeing
• Economic resilience

 

These reforms are backed by the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Act 2024, reflecting Australia’s growing recognition that caregiving is an economic infrastructure.

 

Want to ensure your organisation is ready?

 

As a member, we give you the tools, support and resources you need to become an industry-leading, family-friendly, inclusive workplace. Our advisory, learning and care services are extensive, customisable and deliver measurable impact, allowing organisations to report on E’S’G, Gender Equality and Wellbeing progress.

 

Become a Member.

 

A Win for Families, Equity, and Workplaces

 

This isn’t just a policy update, it’s a once-in-a-generation opportunity to reset how we support working parents in Australia. Employers who act now will not only comply, they’ll lead.