Australia – Increase to paid parental leave

What’s new?

The Senate has passed the Paid Parental Leave Amendment (More Support for Working Families) Bill 2023, which provides for an additional 2 weeks of federally funded paid parental leave for eligible parents from 1 July 2024. Currently, eligible parents are entitled to 20 weeks of paid parental leave.

What are the key changes to paid parental leave?

  • Effective 1 July 2024, eligible parents will be entitled to 22 weeks of paid parental leave in total, increasing each year by two weeks until it reaches 26 weeks on 1 July 2026.
  • Effective 1 July 2025, the period of leave reserved for (and which must be taken by) one partner (which is currently two weeks) will also increase each year by one week, until it reaches four weeks on 1 July 2026. Single parents will be entitled to the full period of paid parental leave.
  • Effective 1 July 2025, both parents will be entitled to take four weeks of concurrent paid parental leave, an increase from the current two weeks.

So, what should employers do now?

Employers should review their internal policies and processes to ensure they are compliant with the increased entitlement to paid parental leave, including updating any family leave policies. If you need any support with this, or would like any further information, please get in touch with a member of the MDR ONE team.

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