Parents are being offered more paid parental leave (PPL) thanks to ongoing campaign efforts by trade unions to expand paid parental leave and help address the gender pay gap.

The federal government recently introduced PPL legislation to parliament after announcing a raft of reforms in October 2022, including measures that will expand the amount of parental leave available, and make it more appealing for both parents (where applicable) to take PPL.

Around 180,000 families are set to benefit from these changes, which will ultimately help parents juggle the challenges of maintaining a career and caring for additions to the family.

Unions have been at the forefront of campaigning for improvements to the paid parental leave scheme, with particular focus on addressing gender inequity and the persistence of the gender pay gap.

So, what are the key changes?

1. Longer, more equitable leave periods

Parents who have had a child, or have adopted a child from 1 July 2023, will be able to apply for up to 20 weeks of leave, provided they meet eligibility requirements.

This number will increase to 22 weeks from July 2024, and will go up to 24 weeks from July 2025.

This figure will extend further to 26 weeks from July 2026.

However, it is important to note that not all of this leave allowance can be used by one parent (where a second parent is also applicable). These changes have been designed to encourage both parents to take time out and claim a period of PPL.

For the current financial year, and through 2024-25, a fortnight’s worth of the total leave is available exclusively to the parent who is not using up the majority of the leave allowance.

If this two-week period of PPL is not used – it is forfeited, and cannot be transferred to the other parent.

From July 2025, at least three weeks from the 24-week PPL allowance must be taken by the second parent. This increases to four weeks of reserved leave for the secondary parent from July 2026.

It is hoped that this ‘use-it or lose-it’ approach will encourage more fathers or partners to embrace paid parental leave.

2. A greater focus on flexibility:

These measures also introduce greater choice for parents, In recognising the diverse needs of modern families, parents can choose to take their leave in one continuous block, or opt for a flexible arrangement that includes splitting the leave between parents.

It is hoped this change will see parents use their PPL allocations intermittently, where required, within the child’s first two years.

Is there criteria that must be met?

The applicability and flexibility of these measures will be dependent on two federal government income tests.

To access the full 20 weeks of paid leave (increasing to 26 weeks by 2026), parents must have a combined income of less than $350,000.

However, if a couple’s combined income exceeds this figure then the majority of the leave allowance can be allocated to one parent, provided they make less than $168,865 per year.

For single parents, they too must make less than $168,865 to access the full PPL scheme.

These new measures are hard-fought reforms that were campaigned for by everyday working people, and supported by the trade union movement. It is hoped that these changes will make it easier for parents to sustain both their professional and personal lives, without compromise.

Should parents embrace these changes, it is anticipated that we will also see an easier pathway for mothers to re-enter the workforce, and improvements in pay equity.