Parental leave just got a major upgrade (finally, something worth clapping for)

More leave, actual superannuation, and less of the old “see you in 2 weeks, good luck with the baby” energy.

Let’s be honest. When someone on your team announces a baby, your first thought probably isn’t “how can I support this beautiful life transition?” It’s more like “who’s going to do their job for the next six months?” Totally fair. You’re running a business. There are deadlines, rosters, invoices and Barry from accounts who still thinks Microsoft Teams is a rugby club.

But from 1 July 2025, the government’s rolling out major changes to Parental Leave Pay. And if you employ humans, you need to know what’s changing. Here’s everything you need to know, with none of the boring bits.

More leave. Less scrambling.

Right now, eligible parents get 20 weeks of paid leave from the government. That’s decent, but not quite enough to survive the newborn fog and remember your own name.

From 1 July 2025, that bumps up to 24 weeks. By 1 July 2026, it hits 26 weeks. That’s half a year of paid time to raise a small, loud human and maybe have a nap. Your employees will have more time to bond, adjust, and stop pretending to care about emails during night feeds. And you’ll have a better shot at planning leave without a panic attack.

Tag team parenting is in.

Of the 120 days, 15 are now reserved for each parent. That means both people have to take at least some leave to unlock the full benefit. And if you’re in a relationship, you can now take up to 20 days together. That’s nearly three weeks of joint parenting chaos. Perfect for arguing over car seat instructions and discovering who really changes the worst nappies.

If you’re a single parent, you still get the full amount. No partner required, no judgement.

Super’s finally coming to the party

This one deserves a slow clap. From July 2026, the ATO will pay a 12 percent super contribution on Parental Leave Pay. It won’t land right away. It gets paid after the end of the financial year in which the leave was taken. But it’s still a massive win.

For years, taking parental leave meant falling behind on retirement savings. And we all know who that hit the hardest. This is a practical step toward closing the super gap and treating caregiving as the real, valuable work that it is.

What employers need to do

Even though the government is paying for the leave and the super, you’ve still got responsibilities. Here’s your to-do list:

• Update your parental leave policy to reflect the new structure

• Brief your leadership team so no one says the wrong thing in a baby announcement meeting

• Plan for people taking leave at the same time

• Make it easy for employees to access their entitlements without jumping through 17 hoops

If your current policy is collecting dust or still refers to fax machines, we should probably talk.

Fast facts for your next team meeting

• From 1 July 2025: 24 weeks of government-funded Parental Leave Pay

• From 1 July 2026: Increases to 26 weeks

• 15 days are reserved for each parent

• Couples can take up to 20 days together

• Superannuation of 12 percent paid by the ATO from July 2026, after the financial year

• Still funded by the government, not employers

Why it matters

This isn’t just a policy update. It’s a chance to show your team you’ve got their backs when it counts. It’s about treating people like whole humans. It’s about making space for life and family and not punishing someone financially for having a baby.

People remember how you treat them during life-changing moments. Show up well, and they’ll stick around. They’ll also tell their mates you’re the kind of workplace that gets it.

Final word

The changes are coming. The clock is ticking. If your parental leave policy still has a dusty PDF from 2015 buried in a shared drive no one can access, now’s the time to act.

Need help rewriting your policy?

Want to train your managers to handle leave conversations like pros instead of deer in headlights?

That’s where we come in. No jargon. No red tape. Just clear, human, practical HR that actually works. Let’s get your business sorted before the babies start arriving.