Australian families welcoming a baby or adopting a child from 1 July 2026 are entering a new phase of the federal Parental Leave Pay scheme, with the maximum government-funded payment now extending to 26 weeks, or 130 days.
The latest increase completes the scheduled expansion of the scheme and gives eligible parents additional paid time away from work during a child’s early months. The payment is administered through Services Australia and can be shared between eligible parents under the current rules.
For families planning around a new arrival, the change is more than an extra fortnight. It affects how parents divide leave, how much support they receive and how they coordinate government payments with employer-funded leave.
What Changed
The maximum Parental Leave Pay entitlement increased from 120 days to 130 days for children born or entering care on or after 1 July 2026.
The increase follows the staged expansion introduced in previous years. The scheme moved from 20 weeks to 22 weeks, then 24 weeks, before reaching the current 26-week maximum.
Under the existing reforms, 26 weeks is the final scheduled increase.
Parental Leave Pay remains separate from unpaid parental leave available under Australia’s workplace laws. An eligible employee may therefore combine the government payment with employer-provided parental leave and other workplace arrangements.
What It Pays
The payment is linked to the national minimum wage rather than the recipient’s normal salary.
Because the minimum wage is adjusted annually, the dollar value of Parental Leave Pay can change from one financial year to another.
For eligible families claiming from 1 July 2026, the payment is approximately $200 per day before tax, based on the applicable minimum-wage rate.
Across 130 payable days, that represents roughly $26,000 before tax, although the exact amount depends on the official daily rate applying to the person’s claim.
The additional 10 days therefore provide a meaningful increase compared with the previous 24-week maximum.
Parents should also remember that Parental Leave Pay is taxable income.
Who Gets It?
Not every new parent automatically qualifies for the payment.
Eligibility generally depends on three major tests: the work test, income test and residency requirements.
The work test is designed to establish that the claimant has maintained a sufficient connection with the workforce before the birth or adoption. There are special provisions for certain circumstances, including premature births.
For the 2026–27 financial year, the individual adjusted taxable income threshold is $186,487, subject to the applicable rules.
A family income test can also apply in certain circumstances where an individual’s income is above the individual threshold.
Because eligibility can depend on the particular family circumstances, parents should check their circumstances with Services Australia rather than relying solely on the headline income figures.
Sharing the Days
The 130 days do not necessarily have to be taken entirely by one parent.
Under the current arrangement, 20 days are reserved for the partner, providing that parent with a dedicated portion of the government-funded leave.
Those reserved days generally cannot simply be transferred to the other parent if they are not used.
The remaining entitlement can be divided between eligible parents according to their circumstances.
This gives couples greater flexibility when deciding who stays home initially, who returns to work earlier and whether both parents want to spend some time at home together.
Taking Leave Together
Another important feature is the ability for eligible parents to receive Parental Leave Pay for overlapping periods.
From 1 July 2026, couples can take up to 20 days together, subject to the scheme’s conditions.
For families with a newborn, this could make the first few weeks at home easier, particularly when both parents want time together before one returns to work.
The payment also does not necessarily have to be taken as one uninterrupted block.
Eligible parents may arrange their days around their employment and caring responsibilities, provided the relevant rules are followed and the entitlement is used within the permitted period.
The Two-Year Window
Parental Leave Pay generally needs to be used within the period allowed by the scheme, with the entitlement available before the child’s second birthday or second anniversary of entering care.
That flexibility can be valuable for parents who do not want to use every paid day immediately after birth.
Some families may prefer a continuous period away from work, while others could benefit from spreading paid days around a gradual return to employment.
The exact arrangement should be discussed with the employer as well as checked against Services Australia’s payment rules.
Super Is Included
One of the biggest changes to the broader scheme arrived before the 26-week expansion.
Since 1 July 2025, eligible Parental Leave Pay has included a government superannuation contribution.
The contribution is calculated at the applicable superannuation guarantee rate, currently 12 per cent.
That means eligible parents can receive a retirement-savings contribution while receiving Parental Leave Pay, helping reduce the longer-term financial impact of stepping away from paid employment to care for a child.
How to Claim
Parents can claim Parental Leave Pay through myGov linked to Centrelink, with claims able to be lodged before the baby’s expected arrival.
A claim should not be delayed unnecessarily after the child is born or enters care because time limits apply.
Parents will need to provide the information Services Australia requires to establish the birth or entry into care and assess eligibility.
There is no separate application simply because the entitlement has increased to 130 days. The applicable entitlement is determined under the rules for the child’s date of birth or entry into care.
What Parents Should Check
Before making plans, families should check four things:
- Whether the birth or adoption date falls under the 130-day entitlement
- Whether the claimant meets the work and income tests
- How the 20 reserved partner days will be used
- How government-funded leave will fit with employer-paid and unpaid leave
It is also worth checking whether the family can take overlapping days and how a return-to-work arrangement affects the timing of the payment.
The move to 26 weeks of Parental Leave Pay from 1 July 2026 marks the completion of Australia’s planned expansion of the scheme.
For eligible families, the extra 10 days provide more government-funded support during a period when household expenses can rise sharply and one or both parents may be away from work.
The biggest benefit may ultimately be flexibility: parents can share the entitlement, use reserved partner days, take some leave together and plan their paid period around their family’s needs.
Because eligibility and payment arrangements depend on individual circumstances, families should confirm their entitlement directly through Services Australia before making financial or employment decisions.
