Comply with Paid Parental Leave scheme (26 weeks by 1 July 2026)
Government-funded PPL expands to 26 weeks by 1 July 2026, with super on PPL from same date.
Who must comply
Every employer, large or small, that receives an Employer Determination for an eligible employee (full-time, part-time, casual, seasonal or contract) who has been employed for 12 months or more, will remain employed through the Paid Parental Leave period, is likely to receive at least 8 weeks of Parental Leave Pay and is based in Australia. Employers need not provide it to independent contractors, short-term employees or former employees, but may opt in by agreement.
What triggers it
An employee lodging a Parental Leave Pay claim and Services Australia issuing an Employer Determination letter.
When due
Accept (through Business Hub via PRODA) or seek review of an Employer Determination within 14 days of the letter; pay the employee in their normal pay cycle for the dates Services Australia specifies; report changes in circumstances; repay any overpayment within 28 days.
Evidence required
Employer Determination letter and online acceptance notice; employee pay cycle and business bank details given to Services Australia; payroll records of Parental Leave Pay paid and tax withheld; records of funds received; notices of changes in circumstances; financial reporting and tax records required under the scheme.
Max penalty
Services Australia can direct an employer to stop providing Parental Leave Pay and recover overpaid funds, which must be repaid within 28 days. An employer also cannot withdraw an existing paid maternity or parental leave entitlement under an industrial agreement or law while it is in effect
Effective from
1 July 2026
Summary
The Paid Parental Leave scheme, under the Paid Parental Leave Act 2010, funds Parental Leave Pay at the National Minimum Wage rate ($1,004.70 a week before tax from 1 July 2026). For a child born or adopted from 1 July 2026 a family can receive up to 130 days, or 26 weeks on a 5-day week (120 days for 2025-26 births, 110 days for 2024-25). The scheme applies to all employers, large and small. When Services Australia issues an Employer Determination, the employer must provide the government-funded pay to the employee through its payroll for the first continuous block, receiving the funds before it pays. For children born or adopted from 1 July 2025, the ATO pays a Paid Parental Leave Superannuation Contribution directly to the employee's fund after the financial year ends; the employer does not calculate or pay it. The scheme creates no new leave entitlement and does not let an employer withdraw paid parental leave it already provides.
Enforced by
Source legislation
Topics
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Frequently asked questions
- Who must comply with Paid Parental Leave scheme (26 weeks by 1 July 2026)?
- Every employer, large or small, that receives an Employer Determination for an eligible employee (full-time, part-time, casual, seasonal or contract) who has been employed for 12 months or more, will remain employed through the Paid Parental Leave period, is likely to receive at least 8 weeks of Parental Leave Pay and is based in Australia. Employers need not provide it to independent contractors, short-term employees or former employees, but may opt in by agreement.
- What triggers Paid Parental Leave scheme (26 weeks by 1 July 2026)?
- An employee lodging a Parental Leave Pay claim and Services Australia issuing an Employer Determination letter.
- When is Paid Parental Leave scheme (26 weeks by 1 July 2026) due?
- Accept (through Business Hub via PRODA) or seek review of an Employer Determination within 14 days of the letter; pay the employee in their normal pay cycle for the dates Services Australia specifies; report changes in circumstances; repay any overpayment within 28 days.
- What is the maximum penalty for Paid Parental Leave scheme (26 weeks by 1 July 2026)?
- Services Australia can direct an employer to stop providing Parental Leave Pay and recover overpaid funds, which must be repaid within 28 days. An employer also cannot withdraw an existing paid maternity or parental leave entitlement under an industrial agreement or law while it is in effect
- What evidence is required for Paid Parental Leave scheme (26 weeks by 1 July 2026)?
- Employer Determination letter and online acceptance notice; employee pay cycle and business bank details given to Services Australia; payroll records of Parental Leave Pay paid and tax withheld; records of funds received; notices of changes in circumstances; financial reporting and tax records required under the scheme.
Source: https://www.servicesaustralia.gov.au/employers-role-paid-parental-leave-scheme. Rules Mate is not a law firm. Always verify against the live regulator source before acting.