New parents in Australia may be eligible for paid parental leave (PPL) from work. The Australian Government provides new parents in Australia with the Paid Parental Leave scheme. This allows an employee to take time away from work to look after their new child, rest, and recuperate.

Prior to 1 July 2024, the scheme offered up to 20 weeks of paid parental leave while caring for a child born or adopted. Due to new laws passed by Parliament in March 2024, starting 1 July 2024, the scheme offers up to 22 weeks of leave. This will increase to 24 weeks on 1 July 2025, and 26 weeks on 1 July 2026.

You must satisfy a list of requirements to be eligible for the Paid Parental Leave Scheme. If an individual is eligible, they will be paid at the national minimum wage while on parental leave.

In addition to the Paid Parental Leave Scheme, organisations may offer their own employer paid parental leave to make up the difference in wages. Get in touch with Employee Matters for help with developing your employer parental leave policies.

The individual must be one of the following to be eligible for parental leave under the Paid Parental Leave Scheme:

• The birth mother of the newborn child
• The partner of the birth mother
• The child’s biological father
• The partner of the child’s biological father
• The child’s adoptive parent
• The partner of an adoptive parent
• Gaining parents in a surrogacy arrangement
• The partner of a gaining parent in a surrogacy arrangement
• A person caring for a child under exceptional circumstances

The individual will also have to pass an income test, a work test, and meet residence rules.

The income test can be calculated based on individual or family income thresholds.  Individuals must have an adjusted taxable income below the threshold to be eligible for parental leave under the Government scheme. If they do not meet the individual income test, they can use the family income test, where they are eligible for parental leave under the scheme if the combined adjustable taxable income of them and their partner is under the family income threshold.

To meet the work test, the individual must have worked for 10 of the 13 months before their child's birth or adoption, as well as at least 330 hours (around 1 day a week) in that 10-month period. They cannot have more than a 12-week gap between each workday in the 10-month period. Learn more here.

To be eligible for parental leave under Australia’s Paid Parental Leave Scheme, the individual must also have Australian citizenship, a permanent visa, a Special Category visa, or a certain type of temporary visa such as a partner provisional or temporary protection visa. Newly arrived residents must wait 2 years before being eligible for paid parental leave under this scheme.

In addition to the Government-funded PPL, organisations often provide employers with paid parental leave, or top up payments so that employees receive their full replacement wage rather than the minimum wage. This is not a legal requirement, although it can be a very useful part of an organisation's Employee Value Proposition.  Our blog article on Implementing Employer Paid Parental Leave Schemes has useful guidance for employers to consider.

Under Australian law, employees with 12 months of service or more are entitled to 12 months of unpaid parental leave and entitled to request a further 12 months of unpaid parental leave which the employer can only refuse if there are reasonable business grounds.

Superannuation contributions are not mandated by the Government on employer paid parental leave payments.