Parental and family leave in Australia
Reviewed by Mellow Editorial Team, HR & payroll content team
Parental and family leave in Australia is governed by a mix of federal legislation, the Fair Work Act, and individual awards or enterprise agreements — meaning what an employee receives can be more generous than the legal minimum, but never less.
Government-funded parental leave
The federal government funds a paid parental leave scheme administered through Services Australia and paid via employers. Eligible primary carers can access paid weeks of leave at the national minimum wage, provided they meet the work and income tests. A secondary carer (formerly called "partner pay") entitlement also exists, though the scheme has been progressively expanded and restructured in recent years — check Services Australia for the current number of weeks and any shared-care provisions, as these figures change with federal budgets.
To be eligible, an employee generally needs to have worked for at least 10 of the 13 months before the expected birth or adoption date, and worked at least 330 hours in that period with no more than an 8-week gap. Income tests also apply at the individual level.
Employers receive the government payments and pass them on through normal payroll. PAYG withholding applies, and the payments must be reported through Single Touch Payroll at each pay event in the same way as ordinary wages.
Employer-funded parental leave
Nothing in the law prevents you from offering more than the government minimum — and many employers do, particularly to attract and retain staff. Common approaches include:
- Top-up payments that bring government-funded weeks up to the employee's full salary
- Fully employer-funded weeks on top of the government entitlement
- Superannuation paid during leave, which is not legally required during unpaid parental leave but is increasingly offered as a benefit
If your enterprise agreement or modern award includes paid parental leave provisions, those terms govern. Where an employee is covered by both an award entitlement and the government scheme, they generally receive whichever is more beneficial — they cannot simply be stacked without checking the interaction carefully.
Superannuation is worth flagging specifically. Employers are not required under current law to pay the Superannuation Guarantee (12% of ordinary time earnings from 2026) on periods of unpaid parental leave. If you choose to pay super during that time, it is a genuine employee benefit worth communicating clearly in your contracts or policy.
Unpaid parental leave under the National Employment Standards
The National Employment Standards (NES) give eligible employees the right to take up to 12 months of unpaid parental leave, with the option to request a further 12 months. Eligibility requires at least 12 months of continuous service with the employer before the leave starts, or — for casuals — 12 months of regular and systematic employment.
Both parents can take unpaid leave, though there are rules around how much can be taken concurrently. An employee on parental leave also has the right to return to their pre-leave position, or an equivalent role if that position no longer exists.
Employees on unpaid parental leave are not earning ordinary time earnings, so no PAYG withholding, STP reporting or SG obligation arises for those periods — though you still need to finalise their income statement by 14 July at the end of the financial year covering any paid periods.
Other family leave entitlements
Beyond parental leave, employees have access to several other forms of family-related leave under the NES and most modern awards:
Personal/carer's leave — Employees accumulate 10 days of paid personal/carer's leave per year (for full-time employees, pro-rated for part-time). This can be used to care for an ill or injured family member, not just for the employee's own illness.
Compassionate leave — Two days of paid compassionate leave applies when an immediate family or household member dies or has a life-threatening illness or injury.
Family and domestic violence leave — All employees, including casuals, are entitled to 10 days of paid family and domestic violence leave per year. This entitlement is not pro-rated; the full 10 days is available from the first day of employment.
Community service leave — Unpaid leave for activities such as jury duty or emergency management activities. Jury duty attracts make-up pay for the first 10 days.
Practical steps for employers
Running family leave correctly comes down to a few consistent habits. Keep a written parental leave policy that clearly distinguishes between the government scheme, any employer top-up, and the NES unpaid entitlement. Confirm each employee's eligibility before they go on leave rather than after an issue arises.
Communicate super clearly — whether you will or will not pay SG during unpaid leave — so there are no surprises at return. Update your payroll software to pause STP reporting correctly during unpaid periods, and ensure the income statement is finalised on time.
When an employee is ready to return, the obligation to reinstate them to their original or equivalent role is enforceable. Document any genuine restructures that affect their position while they are away, and seek legal advice before making any changes that could be characterised as adverse action.
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