Revised Announcement on Australia's Enhanced Paid Parental Leave

Significant updates to Australia’s Paid Parental Leave scheme were officially approved by Parliament on March 18, 2024. The enactment of the Paid Parental Leave Amendment (More Support for Working Families) Bill 2023 will augment the duration of leave available to parents.

Commencing from July 1, 2024, the paid parental leave period will progressively extend from the current 20 weeks to 26 weeks by July 1, 2026. This extension will occur in stages, with an additional two weeks being added annually until 2026, culminating in a total increase of six weeks to the existing Paid Parental Leave (PPL) scheme, providing parents with up to six months of leave by 2026. Below is a brief breakdown:

• For children born before July 1, 2024: 100 days of paid leave (around 20 weeks).

• For children born from July 1, 2024, to June 30, 2025: 110 days of paid leave (approximately 22 weeks).

• For children born from July 1, 2025, to June 30, 2026: 120 days of paid leave (about 24 weeks).

• For children born on or after July 1, 2026: 130 days of paid leave (equivalent to 26 weeks).

These modifications will necessitate minimal adjustments for employers, mainly entailing the processing of additional payments for eligible employees. It is advisable for employers to reassess their parental leave policies in light of these changes.

Note: Essential HR will manage these policy updates for our HR Partner clients.

For further details on the enhanced paid parental leave scheme and the implications for employers, please refer to the Services Australia website here.

Additionally, if you require assistance in updating your organisation’s parental leave policy to comply with these new legislative changes, please contact Essential HR at hr@esshr.com.au.

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