Parental Leave Reforms: What Employers Need to Know for 2024–2026

May 1
2 min read

Major changes to paid and unpaid parental leave have been implemented in stages from 2024 through to 2026. These reforms affect employer obligations under both the National Employment Standards (NES) and the Government-funded Paid Parental Leave scheme, and require updated policies, workforce planning, and compliance processes.

Parental Leave Changes from July 2024

Paid Parental Leave (Government-funded)

The Australian Paid Parental Leave scheme has been progressively expanded under the More Support for Working Families Act 2024 to increase flexibility and shared care options for parents.

Under the More Support for Working Families Act 2024, families now have access to an increased number of Paid Parental Leave days, reflecting the staged expansion of the scheme.

These changes form part of a broader reform pathway designed to improve flexibility and support shared caregiving responsibilities.

Unpaid Parental Leave (NES)

Under the Fair Work Act 2009 (Cth), eligible employees continue to be entitled to:

up to 12 months of unpaid parental leave
a right to request an additional 12 months

Key flexibilities have been strengthened, including:

greater ability for parents to share or structure leave between carers
improved access to concurrent leave arrangements
confirmation that one parent’s entitlement is not reduced by the other parent taking leave, even where both work for the same employer

Parental Leave Entitlements from 1 July 2025 and 1 July 2026

From 1 July 2026, Australia’s Paid Parental Leave entitlement reaches 26 weeks, continuing a staged expansion of government-funded parental leave support.

The Government-funded Paid Parental Leave scheme has continued to expand in stages:

From 1 July 2025: entitlement increased to 24 weeks (120 days)
From 1 July 2026: entitlement increases to 26 weeks

The scheme also provides greater flexibility in how leave can be taken, including:

additional days reserved for the partner or secondary carer
increased ability for parents to take leave at the same time
expanded shared care arrangements

Entitlements continue to be determined by the child’s birth or adoption date.

For children born or adopted from 1 July 2025, the additional entitlement applies progressively once proof of birth or adoption is provided.

What This Means for Employers

These changes have practical implications for workforce planning, leave management, and compliance under both the NES and Government-funded scheme settings.

Employers should be aware that increased parental leave entitlements may impact:

workforce continuity and rostering
backfilling and recruitment planning
payroll and leave administration systems
internal policy alignment with current legislative settings

Proactive planning is required to maintain operational continuity and ensure compliance.

Employer Action Checklist

Employers should:

review and update parental leave and HR policies
plan for longer and/or concurrent employee absences
ensure payroll, rostering, and HR systems reflect current entitlements
provide clear communication to employees about leave options and entitlements
ensure managers understand both paid and unpaid parental leave obligations

Compliance Reminder

Parental leave obligations sit across both Government-funded schemes and the Fair Work Act 2009. Employers are required to maintain up-to-date policies and processes that reflect current entitlements and ensure accurate administration of leave.

Failure to manage entitlements correctly may create operational disruption and compliance risk, particularly in workplaces with limited staffing flexibility.