If you employ staff, there’s another important update to unpaid parental leave.
In 2023, the Australian Government introduced significant changes to unpaid parental leave, with legislation providing for a staged increase to flexible unpaid parental leave over several years.
From 1 July 2024, eligible employees could access 110 days of flexible unpaid parental leave. Now, from 1 July 2025, the next stage of those reforms has taken effect, increasing the entitlement to 120 days.
The aim is to continue providing working families with greater flexibility while supporting workforce participation and helping parents balance work and caring responsibilities.
Here’s what has changed and what it means for your business.
From 1 July 2025, eligible employees can now take 120 days of flexible unpaid parental leave within the first 24 months after the birth or adoption of their child.
The entitlement remains part of the employee’s existing unpaid parental leave and can be taken as individual days or separate periods of leave, rather than one continuous block.
This increase forms part of the Government’s staged reforms, with a further increase already scheduled for 1 July 2026.
While the increase from 110 to 120 days may seem relatively small, it continues the shift towards more flexible parental leave arrangements.
Review your parental leave policy to ensure it reflects the current entitlement of 120 days of flexible unpaid parental leave.
As employees have greater flexibility in how they use their leave, workforce planning becomes increasingly important.
Talk with your employees early about their intended leave arrangements so you have time to organise temporary cover and manage workloads.
Managers are often the first people employees approach with parental leave questions.
Ensure they’re aware of the latest entitlement and understand how to respond to leave requests confidently and consistently.
This isn’t the final change.
The Government has already legislated a further increase from 120 days to 130 days, effective 1 July 2026.
Being aware of the broader reform means you’ll be better prepared for future updates.
The continued expansion of flexible unpaid parental leave reflects the changing needs of Australian families and workplaces.
By keeping your policies current and planning ahead, you can support your employees while ensuring your business remains compliant and well prepared.
If you’d like help reviewing your parental leave policies or understanding how these changes apply to your workplace, the Aster HR team is here to help.
