If you employ staff, there’s one final update to unpaid parental leave that you should be aware of.
Over the past three years, the Australian Government has progressively increased the amount of flexible unpaid parental leave available to eligible employees as part of a staged legislative reform.
From 1 July 2026, the final stage of those reforms has now commenced, increasing the entitlement from 120 days to 130 days.
This marks the completion of the Government’s planned expansion of flexible unpaid parental leave.
Here’s what has changed and what it means for your business.
From 1 July 2026, eligible employees can now access 130 days of flexible unpaid parental leave within the first 24 months after the birth or adoption of their child.
The entitlement continues to form part of the employee’s unpaid parental leave and can be taken flexibly as individual days or separate periods of leave.
With this final increase now in place, the staged reforms introduced in 2023 have been fully implemented.
By now, flexible unpaid parental leave should already be part of your workforce planning and parental leave processes.
If you haven’t reviewed your documentation recently, now is the perfect opportunity.
Make sure your parental leave policy reflects the current entitlement of 130 days of flexible unpaid parental leave.
Clear, up-to-date policies help ensure both managers and employees understand what’s available.
Flexible parental leave works best when expectations are discussed early.
Talk with your employees about how they intend to use their leave so you can plan workloads, temporary cover and return-to-work arrangements.
Take the opportunity to ensure your HR and payroll systems, employee handbooks and manager resources all reflect the current legislation.
These reforms aren’t just about meeting your legal obligations.
Supporting employees through major life events helps build trust, improve retention and create a workplace where people feel valued and supported.
The completion of these reforms represents a significant shift in how unpaid parental leave can be accessed in Australia.
While the legislation provides employees with greater flexibility, it also gives businesses an opportunity to adopt more modern, supportive approaches to workforce planning.
Taking the time to review your policies and processes now will ensure you’re not only compliant, but also well placed to support your people when they need it most.
If you’re unsure whether your parental leave policies reflect the latest legislation, or you’d like support reviewing your HR documentation, the Aster HR team is here to help.
