Families will soon have access to significantly more Paid Parental Leave, with the Albanese Government securing legislation to extend the scheme to 26 weeks by 2026.

This expansion of the scheme aims to help close the gender pay gap and create a more equitable and supportive system for working families across the country. An estimated 180,000 families utilise Paid Parental Leave annually.

The improvements will see a gradual increase of two weeks each year to the Paid Parental Leave scheme, reaching the full 26 weeks by July 2026. Under the current scheme, parents receive 20 weeks of paid leave.

The expanded scheme also allows both parents to share the leave entitlement, improving accessibility to the scheme. Notably, the minimum leave reserved for each parent is increased to four weeks, encouraging greater paternal involvement in childcare.

Michele O’Neil, President of the Australian Council of Trade Unions, has welcomed the changes, highlighting their potential to address the “motherhood effect.” This phenomenon often sees women’s earnings significantly decline after childbirth.

“Raising a child can make balancing already stretched budgets a challenge, this increased financial support for working parents is welcome in a cost-of-living crisis,” Ms O’Neil said.

However, O’Neil emphasised the need to consider further enhancements, including extending leave to 52 weeks and increasing the pay rate above the national minimum wage.

“To build on this already great work we would like to see further improvements in the scheme including extended it to 52 weeks and increasing the rate of pay from the National Minimum Wage, to ensure we have a paid parental leave scheme that meets the needs of women, families and our economy,” Ms O’Neil added.