Paid Parental Leave Just Got Better — See What’s Changing in July

A major update to Australia’s paid parental leave kicks in this July, offering more time and support for new parents. But not everyone will qualify !

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Parental Leave
Paid Parental Leave Just Got Better — See What’s Changing in July - Credit : Canva | en.Econostrum.info - Australia

From July 1, Australian parents and carers will gain access to additional paid parental leave days under a revised scheme managed by Services Australia. The changes are set to benefit those with children born or adopted in the new financial year, marking a notable expansion of the country’s family support system.

The adjustment raises the number of Parental Leave Pay days from 110 to 120, applying to eligible parents whose child is born or adopted on or after July 1, 2025. The revised policy reflects the government’s ongoing efforts to extend financial support during early caregiving months.

Eligibility Criteria and Payment Structure

To qualify for the extended leave payments, recipients must meet specific work and income tests and must not be working on the days they receive payments. The leave applies to both biological and adoptive parents, and can be claimed up to three months prior to the expected date a child enters their care.

The current payment rate remains at $183.16 per day before tax, amounting to $915.80 per five-day week. These payments are calculated based on the weekly national minimum wage and can be received before, during, or after any employer-funded parental leave.

Future Increase Planned for 2026

Under the current schedule, the maximum number of paid parental leave days is set to increase again in the coming years. Starting July 1, 2026, the maximum allowance will rise to 130 days for eligible parents. This phased approach aims to gradually enhance parental leave support without abrupt changes to government expenditure or employer policies.

It is important to note that Parental Leave Pay is only available for a single child, even in the case of multiple births or adoptions. Proof of the child’s birth or adoption date is required to access the updated payment threshold. All applications and verifications are handled through Services Australia.

Current Limits and Administrative Oversight

As of now, the 110-day limit remains in place for parents of children born between July 1, 2024, and June 30, 2025. From July 1, 2025 onward, parents of children born or adopted on or after that date will be eligible for the new 120-day entitlement. These figures reflect calendar days of paid leave, not working days.

The adjustments align with broader efforts to make parental leave more equitable and responsive to modern caregiving demands. No changes to the daily payment amount or eligibility tests were announced alongside the updated leave durations.

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