Australia’s Paid Parental Leave (PPL) scheme provides up to 20 weeks of government-funded pay at the national minimum wage to eligible parents following the birth or adoption of a child — the payment is made by Services Australia (formerly Centrelink), not the employer, and is subject to a work test, an income test, and residency requirements. The scheme was expanded from 18 to 20 weeks on 1 July 2024, and will increase to 22 weeks from 1 July 2026.
This guide covers eligibility, the work test, the income test, how the 20-week entitlement is structured, the interaction with employer-funded parental leave, and the employer’s obligations.
Key takeaways
- The PPL provides up to 20 weeks of government-funded pay at the national minimum wage (approximately $882.75/week as of 2025–26).
- The scheme is administered by Services Australia, not the employer — the employer does not fund the payment.
- The work test requires the parent (or their partner) to have worked at least 10 of the 13 months before the child’s birth, and at least 330 hours in that period.
- The income test sets a combined family income threshold of $168,865 per year.
- From 1 July 2026, the PPL increases to 22 weeks.
Eligibility
To be eligible for PPL, the parent must meet all of the following criteria:
| Criterion | Detail |
|---|---|
| Work test | 10 of 13 months before birth, with 330+ hours in that period |
| Income test | Combined family income ≤ $168,865/year |
| Residency | Australian resident or holder of a special category visa |
| Child | Must be a newborn or newly adopted child under 16 |
| Not on other paid leave | Cannot receive PPL while on paid leave from employer (except unpaid leave) |
The work test is the most complex eligibility requirement. It requires:
- 10 months of work (not necessarily consecutive) in the 13 months before the expected date of birth or adoption
- 330 hours of work in those 10 months (approximately 8.25 hours per week)
- Work includes employment, self-employment, and some volunteer work
How the 20 weeks are structured
The 20-week PPL entitlement can be taken as:
- Continuous period: One parent takes the full 20 weeks
- Flexible period: The entitlement can be taken in blocks, with periods of work in between
- Shared period: Both parents can share the 20 weeks (e.g. 10 weeks each)
The flexible option allows parents to:
- Take leave in blocks of at least 1 day
- Return to work between blocks
- Use the leave at any time within 12 months of the child’s birth or adoption
The shareable nature of the PPL means both parents can claim a portion, but the total cannot exceed 20 weeks.
The employer’s role
The employer’s role in the PPL scheme is limited:
- No obligation to fund the PPL — the payment is made by Services Australia
- No obligation to top up the PPL — the PPL is at the minimum wage; the employer is not required to top it up to the employee’s regular salary
- Cannot require the employee to take PPL — the PPL is the employee’s choice
- May offer employer-funded parental leave — some employers offer additional paid parental leave on top of the PPL
- Must confirm employment — the employer may be contacted by Services Australia to verify the employee’s work history
The PPL is entirely separate from any employer-funded parental leave scheme. An employee can receive both, subject to the employer’s policy.
Employer-funded parental leave
Many Australian employers offer paid parental leave in addition to the government PPL. Common employer schemes include:
| Employer type | Typical PPL |
|---|---|
| Commonwealth Public Service | 18 weeks at full pay |
| State Public Service (varies by state) | 14–18 weeks at full pay |
| Large private sector employers | 12–26 weeks at full or partial pay |
| Small private sector employers | Varies; often unpaid or minimum PPL |
The employer’s scheme is entirely voluntary (unless required by an enterprise agreement or contract). The NES does not mandate paid parental leave — the unpaid parental leave entitlement under s.74 is the only NES parental leave right.
Unpaid parental leave (NES)
In addition to the government PPL, the NES provides 12 months of unpaid parental leave to eligible employees under s.74 Fair Work Act:
| Criterion | Detail |
|---|---|
| Eligibility | 12 months of continuous service |
| Duration | 12 months (extendable to 24 months by agreement) |
| Who can take it | Birth parent, adoptive parent, or partner |
| Notice | 10 weeks before the expected start date |
| Employer’s right to refuse | Can request to defer for operational reasons (subject to Fair Work Commission review) |
The unpaid parental leave is separate from the PPL. An employee can receive the government PPL while on unpaid parental leave from the employer.
Common pitfalls
1. Confusing PPL with employer-funded leave
The PPL is a government payment, not an employer payment. The employer does not fund, deduct, or process the PPL. The employee applies to Services Australia directly.
2. Not meeting the work test
The work test is strict: 10 of 13 months, with 330+ hours. Self-employed parents must keep detailed records. Parents who took extended leave before the child’s birth may not meet the test.
3. Exceeding the income threshold
The combined family income threshold is $168,865 per year. The income test applies to both parents’ income, not just the claiming parent’s.
4. Taking PPL during paid leave
The employee cannot receive PPL while on paid leave from the employer (e.g. annual leave, paid personal leave). The PPL can only be taken during unpaid leave, or in addition to unpaid leave.
5. Not applying on time
The PPL claim must be lodged within 12 months of the child’s birth or adoption. Late claims may be rejected.
For more Australian context, see our guide to Australian annual leave and Australian long service leave.
A leave management system that tracks parental leave dates, coordinates government PPL with employer schemes, and manages the NES unpaid parental leave entitlement keeps your team’s parental leave process simple and compliant.
Frequently asked questions
How long is paid parental leave in Australia?
The government PPL provides up to 20 weeks of pay at the national minimum wage. From 1 July 2026, this increases to 22 weeks.
Who pays for parental leave in Australia?
The government funds the PPL through Services Australia. The employer does not fund the payment. Some employers offer additional paid parental leave on top of the government PPL.
Can both parents claim PPL?
Yes. Both parents can claim a portion of the 20-week PPL entitlement, but the total cannot exceed 20 weeks.
Is parental leave paid by the employer?
The NES provides 12 months of unpaid parental leave. Some employers offer paid parental leave as an additional benefit, but this is not required by the NES.
What is the work test for PPL?
The work test requires the parent (or their partner) to have worked at least 10 of the 13 months before the child’s birth, with at least 330 hours in that period.
Sources
- Fair Work Act 2009 — Part 2-2, Division 4A
- Services Australia — Paid Parental Leave
- Fair Work Ombudsman — Parental Leave
Last updated: 26 July 2026. This article is general guidance, not legal advice. PPL eligibility, work test, and income test thresholds change — confirm current terms with Services Australia.