Parental Leave Pay Australia 2026: New 26-Week Entitlement Explained
When my sister had her first child last year, she was shocked to discover she was entitled to more than she'd budgeted for — not because the scheme had changed, but because she hadn't realised her partner could also claim a portion of the leave separately. They'd assumed it was a single payment that went entirely to her. The extra weeks her partner claimed changed how they structured the first few months entirely.
Australia's Parental Leave Pay scheme has changed significantly in recent years and again from 1 July 2026. If you're expecting a baby or planning ahead, here's exactly what you're entitled to and how to claim it.
What Changed on 1 July 2026 New
Two meaningful changes took effect from 1 July 2026:
120 days total. 10 days reserved for non-birth parent.
130 days total. 20 days reserved for non-birth parent.
The rate increase reflects the Fair Work Commission's annual National Minimum Wage review. The extra two weeks (10 additional days) are added automatically — if you submitted a pre-birth claim before 1 July 2026, Centrelink will add the 10 days to your balance once proof of birth confirms your child was born on or after that date.
Current Rates — 2026-27
| Period | Daily rate (before tax) | Weekly rate (before tax) | Total (130 days) |
|---|---|---|---|
| From 1 July 2026 | $200.98 | $1,004.70 | ~$26,122 |
The payment is taxable income — 15% tax is withheld by default if Services Australia pays you directly. If your employer pays it through payroll, they withhold tax at your normal rate. Your final tax position depends on your total income for the year, including any period you return to work.
Who Qualifies?
To receive Parental Leave Pay, you need to pass three tests:
1. Work test
You must have worked for at least 10 of the 13 months before your child's birth or adoption date, and completed at least 330 hours in that 10-month period (roughly one day per week). There must be no gap of more than 12 weeks between two working days in that period.
2. Income test
For children born or adopted between 1 July 2026 and 30 June 2027, the income limits are:
- Individual income test: Your adjusted taxable income must be $186,487 or less in the 2025-26 financial year
- Family income test: If you don't meet the individual test, your combined household income can be up to $386,525 — this helps families where the higher earner is the one claiming
3. Residency test
You must be an Australian resident and physically present in Australia on the day your Parental Leave Pay period starts.
How the 130 Days Are Shared
For children born or adopted from 1 July 2026, the 130 days are a shared family entitlement — not a single person's entitlement. Here's how it works:
- 20 days are reserved for the non-birth parent (partner days) — these generally can't be transferred to the primary carer
- The remaining 110 days can be shared between parents however works best for your family, provided both parents meet the eligibility criteria for the days they claim
- Both parents can take leave at the same time — you're not required to take it sequentially
- PPL days don't have to be weekdays — you can nominate any day (including weekends and public holidays) as a PPL day, as long as you're caring for the child and not working on that day
👶 Parental Leave Pay Calculator — 2026-27
Estimate your total payment and plan how to share days between parents.
Total family entitlement
130 days
26 weeks
Partner reserved days
20 days
cannot be transferred
Primary carer total
$22,107
110 days
Partner total
$4,020
20 days
Super (12%)
~$3,135
paid by ATO after FY ends
Based on $200.98/day (2026-27 rate, before tax). Super calculated at 12% of gross payment. Actual amounts may vary — for exact figures, use the Centrelink estimator at servicesaustralia.gov.au.
How to Apply
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1Apply early — up to 3 months before your due date You can submit a pre-birth claim through myGov → Centrelink → Make a claim → Families. Payments won't start until after the birth, but applying early means less stress when the baby arrives.
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2Complete the combined claim The Centrelink claim covers both Parental Leave Pay and Family Tax Benefit in one application. You'll need your TFN, employer's ABN, work history for the past 13 months, income details, and bank account information.
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3Register your child's birth You must register your child's birth with your state or territory birth registry. Centrelink needs this before finalising your claim.
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4Submit proof of birth After your baby arrives, upload the hospital's "Proof of Birth" form through myGov to complete your claim. Your payment schedule will appear in your Centrelink account once approved.
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5Nominate your PPL days Tell Centrelink which days you want to claim as PPL days. If sharing with a partner, coordinate this together — the system requires both parents to confirm their day allocations.
Employer-Paid Leave — How It Interacts
Many employers offer their own paid parental leave on top of the government scheme. How this works depends on your employer's policy:
- Some employers pay their full salary during leave and also pass through the government PPL on top — meaning you receive both
- Others "top up" the government PPL to your regular salary, so your total income stays at your normal level
- Some smaller employers don't offer anything beyond the government scheme
Check your employment contract or ask your HR department specifically: "Does our company policy provide pay on top of, or instead of, the government Parental Leave Pay?" The answer changes your financial planning significantly.
Common Questions
Related Articles
Sources: Services Australia — Parental Leave Pay, ATO (ato.gov.au), Fair Work Ombudsman
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