Cash boost for new Aussie parents as Paid Parental Leave scheme extended

New parents will enjoy an extra fortnight with their fresh arrival from this month, with the Paid Parental Leave scheme expanding from to 22 weeks.

The extension began on July 1, and will leave many Australian families $2500 better off, when coupled with the 3.75 per cent minimum wage increase that kicked in this month.

The scheme will also continue to expand by two weeks each year until 2026, when new parents will get a full 26 weeks of leave.

By the end of the extension, the six additional weeks of leave will give families a total of about $24,000 in government-funded parental leave, Minister for Women and Finance Katy Gallagher said on Tuesday.

And from July 2025, superannuation is also expected to be paid on Paid Parental Leave, with legislation set to pass through parliament later this year.

That is expected to result in a $4000 boost to retirement savings for parents who have taken the leave.

Should the legislation pass, parents with babies born or adopted on or after July 1, 2025 will also receive an additional superannuation boost equal to 12 per cent of the Paid Parental Leave payment.

The amount of leave that parents can both take at the same time, was also increased from two to four weeks to increase flexibility.

“This is the biggest boost to Paid Parental Leave (PPL) since it was created by the former Labor Government in 2011,” Prime Minister Anthony Albanese said when the new legislation was passed by the Senate in March.

Expecting parents were able to pre-claim from as early as March 26, and more than 180,000 families are expected to benefit from the cash boost each year.

“Our changes to PPL are essential economic reforms that recognise that unpaid care is valued and necessary in our economy,” Gallagher said on Tuesday.

“This reform supports the sharing of care, while also giving women and families more choice and flexibility.”