Paternity and partner leave in Australia
Reviewed by Mellow Editorial Team, HR & payroll content team
Eligible employees in Australia can take up to two weeks of government-funded Dad and Partner Pay, plus any additional unpaid leave available under the National Employment Standards — and some employers top this up further through enterprise agreements or contracts.
What the law actually provides
The National Employment Standards (NES) give an eligible employee up to 12 months of unpaid parental leave, with the right to request a further 12 months. This applies to both parents, including a secondary carer (the partner who did not give birth).
The government's Parental Leave Pay scheme, administered by Services Australia, provides a paid component. From July 2025, the scheme moved to a single, more flexible pool of 22 weeks of government-funded pay (at the national minimum wage rate), shared between both parents as they choose. Partners no longer claim a separate Dad and Partner Pay entitlement — instead, both parents draw from the same shared pool. The key practical point: the full pool is only accessed when both parents use some of the leave, so there is an incentive for the partner to take their share.
Eligibility for the government payment requires the employee to meet a work test (broadly, working regularly in the period before the birth or adoption) and an income test. Employees apply directly to Services Australia — the employer's role varies depending on whether they are listed as a "primary employer" in the scheme.
Unpaid leave under the NES
An employee who has completed 12 months of continuous service is entitled to take unpaid partner leave around the time of birth or adoption. The NES allows a partner to take up to 12 months unpaid leave, with the ability to request a further 12 months (which the employer can only refuse on reasonable business grounds).
Casual employees can access unpaid parental leave if they have been employed on a regular and systematic basis for at least 12 months and have a reasonable expectation of continuing employment.
During unpaid parental leave, the employee retains their right to return to their pre-leave position or, if that role no longer exists, an equivalent role. Employers cannot dismiss an employee because they have taken or requested parental leave.
Superannuation during parental leave
From 1 July 2025, the Australian Government began paying superannuation on government-funded Parental Leave Pay at the Superannuation Guarantee rate — currently 12% of ordinary time earnings (from 2026). Employers are not generally required to pay super on unpaid parental leave periods, but some enterprise agreements or contracts specify otherwise. Check the relevant award, agreement or employment contract before assuming no super is owed.
What employers may provide on top
The NES sets a floor, not a ceiling. Many employers — particularly those with enterprise agreements or competitive hiring needs — offer paid partner leave beyond the government scheme. This might be expressed as:
- A number of weeks at full or half pay
- A "top-up" to bring government payments closer to the employee's actual salary
- Flexible arrangements around when the leave is taken
If your organisation has a parental leave policy, make sure it distinguishes clearly between entitlements under the NES, entitlements under the government scheme, and any additional employer-funded component. Ambiguity here creates payroll and compliance risk.
Payroll and STP obligations
While an employee is on unpaid leave, there is nothing to report per pay event under Single Touch Payroll — no gross, no PAYG withheld. When the employee returns and is paid normally, reporting resumes. If your payroll software is processing a top-up payment (employer-funded paid leave), that is treated as ordinary income: PAYG withholding applies, the payment is subject to the Medicare levy (2%), and any HECS/HELP repayment obligations continue based on the employee's annualised income.
Ensure your payroll system is set up to handle return-to-work correctly, particularly if the employee changes hours or salary on return. Incorrect leave balances or pay rates at return are a common source of disputes.
Leave balances and continuity of service
Unpaid parental leave does not break continuity of service — the employee's start date remains unchanged for the purpose of calculating entitlements like long service leave and redundancy pay (which scales by years of service under the NES). Annual leave does not accrue during a period of unpaid leave unless the employment contract or enterprise agreement says otherwise. Paid leave entitlements (like annual leave taken before the unpaid period begins) do accrue normally up to the point leave becomes unpaid.
Keep records of the exact dates unpaid leave starts and ends. This matters when you later calculate redundancy entitlements or long service leave, and when you reconcile leave balances at the end of the financial year — STP finalisation is due by 14 July each year.
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