Australia’s paid parental leave framework continues to evolve, with two significant developments that HR professionals and employers must understand.
From 1 July 2026, the total Government funded Paid Parental Leave entitlement will increase by a final two weeks to reach 26 weeks. In addition, on 3 November 2025, the Fair Work Amendment (Baby Priya’s) Bill 2025 was passed, requiring employers to honour paid parental leave in the event of a stillbirth, or where a child dies and the parent would otherwise have been entitled to leave. This legislation took effect on 7 November 2025.
Together, these changes strengthen protections for working parents and reinforce the need for careful compliance and compassionate leadership.
Expansion to 26 Weeks From 1 July 2026
Under the Fair Work Act 2009, eligible employees are entitled to unpaid parental leave under the National Employment Standards. In parallel, the Commonwealth Government has been progressively expanding the Paid Parental Leave scheme.
From 1 July 2026, the scheme will reach its final expansion to 26 weeks of Government funded Paid Parental Leave.
While the payment itself is administered by Services Australia, employers play a critical role in implementation.
What This Means for Employers
Employers should ensure:
- Payroll systems reflect updated entitlements
- Employment contracts and parental leave policies are current
- HR teams understand how Government funded payments interact with employer funded parental leave
- Managers are trained to respond consistently and accurately to leave requests
Employers that provide enhanced paid parental leave above the statutory minimum should also review their policies to ensure they remain competitive and aligned with workforce expectations.
Baby Priya’s Law: Strengthened Protections Following Stillbirth or Child Death
The Fair Work Amendment (Baby Priya’s) Bill 2025 amended the National Employment Standards to clarify that paid parental leave must be honoured where:
- A child is stillborn, or
- A child dies, and the employee would otherwise have been entitled to parental leave.
This reform removes previous uncertainty in deeply tragic circumstances and ensures employees are not deprived of leave entitlements at a time of profound personal loss.
Employer Obligations
Organisations must now ensure that:
- Parental leave entitlements continue in these situations
- Policies and procedures clearly reflect the amended law
- Managers respond with sensitivity, discretion and respect
These matters require both legal compliance and human compassion.
Compliance Checklist for Australian Employers
In light of these changes, Australian employers should:
✔ Update parental leave policies to reflect the 26 week entitlement from 1 July 2026
✔ Amend internal procedures to incorporate the requirements introduced by Baby Priya’s Law
✔ Review payroll systems to ensure correct administration
✔ Provide guidance and training to managers on handling sensitive parental leave situations
✔ Communicate clearly with employees about their entitlements
Organisations operating across multiple jurisdictions should also ensure alignment between Australian obligations and any global parental leave frameworks.
The Strategic HR Perspective
Paid parental leave is increasingly central to:
- Gender equity outcomes
- Workforce participation
- Talent attraction and retention
- Employer brand positioning
Expanding entitlements and strengthening protections signal a continued shift towards more inclusive workplace standards.
For HR leaders, this is an opportunity to move beyond minimum compliance. A well designed parental leave framework can support long term workforce planning and enhance organisational trust.
Final Thoughts
The move to 26 weeks of Paid Parental Leave from 1 July 2026, combined with the introduction of Baby Priya’s Law, represents a meaningful evolution in Australian workplace law.
Now is the time for employers to review policies, update systems and ensure leadership capability aligns with both the letter and the spirit of the law.
Proactive action today will ensure compliance tomorrow, while demonstrating genuine care for employees during some of life’s most significant moments.
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