Big win for Aussie parents as Albanese government increases paid parental leave: Here’s what it means for you

A jump in paid parental leave to 26 weeks will help tackle the gender pay gap and prevent working parents from losing out when they have children, the top trade union body said as legislation endorsed the move on Monday.

The 20 weeks of paid leave that families currently have access to will gradually increase by two weeks per year from July 2024, until reaching the 26-week rate in July 2026.

But those who are on furlough when the financial year ends will not get the two extra weeks, with the furlough period applying from the time the application is submitted.

The changes were laid down after the legislation was passed by Parliament on Monday.

This is expected to benefit more than 180,000 families annually and cost approximately $4.4 billion per year from 2026/2027.

To encourage more two-parent families to share caring responsibilities, four weeks are reserved for each parent on a ‘use it or lose it’ basis.

Parents also get more flexibility and can take four weeks of leave at the same time.

The Australian Council of Trade Unions welcomed the increase, but called on the government to increase it to 52 weeks.

“We want to see continued improvements in our paid parental leave,” said President Michele O’Neil.

‘There is still an honest way to go. We need to make sure that we lift the benefits that people receive so that they are higher than the minimum wage.”

Half of women who take leave find their old job gone when they return to work, while others find their role has changed substantially, Ms O’Neil said.

“We need to make sure that you are not disadvantaged or discriminated against when you have a baby,” she said.

Independent senators David Pocock and Jacqui Lambie, who support the expanded plan in principle, urged an easier ride for small businesses in processing the payments.

They expressed concern that it would place a heavy administrative burden on small businesses, and argued that the task should instead fall to Services Australia unless businesses choose to take on this task.

“That is so unfair,” Senator Lambie told the House.

“Small businesses don’t have HR departments, they don’t have armies of accountants on their payroll.”

Only four percent of companies would have to arrange annual paid parental leave and the cost was minimal in terms of time and money, despite some employers facing some challenges, Labor senator Malarndirri McCarthy said.

The government also helped employers streamline the administrative process, she added.

Maintaining a relationship with your employer was crucial, Social Services Minister Amanda Rishworth said as she praised the increase.

“This is a very historic day for Australia, but our work is not done yet,” she said.

“We remain committed to ensuring that our paid parental leave scheme improves.”

The Greens have failed to push the government to bring forward its pledge to pay pensions on the government pay from July 2025.

“There is still no justification for asking women to wait 16 months,” said Senator Larissa Waters.