Australian families will gain access to up to six months of government-funded Paid Parental Leave from July 1, in what the Albanese Government has described as a major expansion of support for new parents.
The changes will increase the maximum Paid Parental Leave entitlement to 26 weeks, more than double the amount available before Labor came to office, while also boosting payment rates and expanding eligibility thresholds.
Eligible families accessing the full entitlement will receive almost $30,000 in payments, with the weekly rate increasing to $1,004.70 from the start of the new financial year.
Prime Minister Anthony Albanese said the reforms would give parents more time to spend with their newborn children during a critical stage of family life.
“The first months with a new baby are precious. My Government is making it easier for parents to spend that time together,” Albanese said.
“That’s why we’re expanding Paid Parental Leave again from 1 July, giving parents more time at home with their newborn and more support when they need it most.”
The reforms also increase the income limits used to determine eligibility. From July 1, the individual income threshold will rise to $186,487, while the family income limit will increase to $386,525.
The Government said more than 460,000 children have already benefited from previous expansions to the Paid Parental Leave scheme.
Minister for Women Katy Gallagher said the changes reflected modern family arrangements and would support greater sharing of caring responsibilities.
“By expanding Paid Parental Leave we are making the scheme stronger, fairer and better suited to the way modern families share care,” Senator Gallagher said.
“These changes give parents more time, more flexibility and more financial security, while helping make caring responsibilities more equal between women and men.”
The expansion comes alongside a broader package of increases to social security payments and family assistance measures that will take effect from July 1.
More than 1.2 million families are expected to receive higher Family Tax Benefit payments. The maximum rate of Family Tax Benefit Part A will rise to $235.48 per fortnight for children under 13 and $306.46 per fortnight for children aged 13 and over.
Family Tax Benefit Part B will increase to $200.34 per fortnight for families whose youngest child is under five years old and to $139.86 per fortnight where the youngest child is aged five or older.
In addition, income and asset thresholds for a range of welfare payments, including pensions and Parenting Payment Single, will increase, allowing recipients to earn or hold more assets before their payments are reduced.
Minister for Social Services Tanya Plibersek said the reforms would provide practical support for families facing cost-of-living pressures.
“Labor’s changes to Paid Parental Leave mean working parents get more time off and more money when they welcome a new arrival into their family.”
The Government said the changes form part of its broader effort to strengthen support for families while encouraging workforce participation and improving gender equality outcomes.
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