Who must 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.

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.

Applies when the business has employees.

How the regulator frames it: 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.

Jurisdiction: Commonwealth law, so the test is the same in every state and territory.

Outcome across the 35 industries Rules Mate maps (35 of 35: depends on size or structure).

The answer is the same in every industry: depends on size or structure. Industry does not change who must comply.

Structure does not change the answer across all industries: for every structure the answer is "depends on size or structure".

Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:

• Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: applies. You have employees (6–19)
• Pty Ltd company in real estate agents with no employees, turnover $100K–$1M: does not apply. Requires employees.

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.

Frequency

When a triggering event occurs

Evidence to keep

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.

In force from

1 July 2026

Status

Current

Priority

High

Maximum 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.

Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.

• PPL scheme expands to 26 weeks: 1 July 2026 (one-off). Maximum government-paid parental leave reaches 26 weeks.

If this obligation applies to you, so do these 11: the engine uses the same rule for each.

• Pay superannuation on every payday (Payday Super)
• Report under Single Touch Payroll Phase 2
• Pay employees in accordance with the applicable modern award
• Honour employees' right to disconnect (s 333M)
• Verify work rights via VEVO before employment
• Pay annual leave loading where the award or contract provides
• Provide 10 days personal/carer's leave per NES
• Provide 10 days paid family + domestic violence leave (FDV)
• Document VEVO checks + retain employer records (s 245AYL Migration Act)
• Provide minimum notice of termination (NES s 117)
• Right to Disconnect (s 333M FWA)

Rules Mate tracks 1 published obligation tagged "ppl", 0 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 1 of those apply outright. This obligation is rated high priority, and is triggered by events.

Paid Parental Leave Act 2010: Government-funded parental leave at national minimum wage.

• Paid Parental Leave Act 2010

Free tools that help with this obligation:

• Payday Super readiness
• Right to Disconnect policy
• WGEA readiness