Parental leave has undergone significant reform in recent years, and in 2026 the system is both more flexible and more complex than ever before. For employers, understanding how parental leave can be shared between parents is critical for compliance and workforce planning. 

Changes to the Paid Parental Leave (PPL) scheme 

Australia’s government-funded Paid Parental Leave (PPL) scheme is designed to encourage shared caregiving. 

From 1 July 2026: 

• Eligible families can access up to 26 weeks of government-funded PPL  
• This leave can be shared between both parents in any combination  
• A portion of the leave is reserved for each parent on a “use it or lose it” basis 

This only applies to the government-funded scheme administered by Services Australia; it is separate from the unpaid parental leave provided for by the Fair Work Act.  

Similarly, if your business provides their own PPL scheme, this is unlikely to directly impact upon how you choose to run your scheme. However, if your scheme is conditional upon payments under the government-funded PPL, it is recommended that you review your scheme now to avoid unintended effects. 

There are no changes to unpaid Parental Leave entitlements 

The National Employment Standards (NES) continue to provide employees with: 

• Up to 12 months unpaid parental leave, or up to 24 months if the employer agrees 
• Leave which can be taken as a single continuous period, flexibly, or a combination of both
• Parents can take parental leave concurrently (at the same time) for part or all of their period of leave
• Employees can take paid leave such as annual leave at the same time as unpaid parental leave

These provisions are designed to support shared caregiving responsibilities, particularly enabling partners to be present in the early stages following birth or an adoption placement. 

The changes to the PPL scheme do not increase or decrease the amount of unpaid parental leave a person is entitled to.

Why do employers need to understand paid and unpaid parental leave entitlements? 

Employers face unique workforce pressures – particularly in sectors like health, construction, resources, and small businesses. 

An increase in the expectation that both parents take some form of parental leave under the PPL scheme, and that leave can be taken in shorter, non-continuous periods, is likely to impact upon businesses in three main ways:

1. Less predictable leave patterns: Employees may split leave into multiple blocks or alternate between parents over a two-year period.

2. Increased partner leave uptake: With dedicated “use it or lose it” entitlements, more fathers and partners are taking extended leave that may have previously only taken 2 weeks immediately after birth or adoption.

3. Greater demand for flexibility: Employees are increasingly seeking part-time returns, staggered leave, or overlapping leave periods. 

For employers, this means moving beyond traditional maternity-focused policies. 

How employers can prepare for changes to the PPL scheme 

In preparation for the upcoming changes, employers should consider:  

1. Moving beyond primary vs secondary carer distinctions

Many employer policies continue to rely on traditional distinctions between “primary” and “secondary” carers. These constructs are increasingly outdated and are becoming misaligned with both legislative developments and contemporary workforce expectations. 

The shift toward shared parental responsibility requires employers to reconsider how leave entitlements are structured and accessed. Rigid classifications can create unintended barriers, limit flexibility, and expose businesses to legal risk, particularly in relation to indirect discrimination.

In preparing for these changes, employers should adopt a more contemporary and inclusive framework by: 

• Introducing gender-neutral parental leave policies that focus on caregiving responsibilities rather than prescribed roles 
• Removing strict definitions of “primary” and “secondary” carer that may restrict access to entitlements or create inequitable outcomes
• Ensuring policy language aligns with the operation of the government schemes and does not inadvertently exclude eligible employees

Adopting this approach not only supports equity and inclusion but also reduces the risk of discrimination claims and aligns organisational practice with modern workforce participation patterns. 

2. Exploring ways to manage the practical challenges 

While shared and flexible parental leave arrangements offer significant benefits, they also introduce a level of operational complexity that must be actively managed. 

Best practice includes: 

• Requiring formal notice of leave, including clear confirmation of intended dates, duration, and any proposed changes  
• Implementing robust approval processes that balance employee entitlements with operational requirements
• Building flexibility into workforce planning, including the use of temporary backfills, cross-training, or redistribution of duties
• Maintaining regular and appropriate communication with employees during leave to manage expectations and changes  
• Clearly documenting all agreed leave arrangements, variations, and approvals to ensure transparency and consistency  

A disciplined approach to process and documentation is critical to managing risk and maintaining operational stability. 

3. Supporting employees across the leave lifecycle 

Employers who take a structured and proactive approach to parental leave management will achieve stronger return-to-work outcomes, improved retention, and higher levels of employee engagement.

Support should be considered across the entire leave lifecycle: 

Before leave: 

• Confirm all relevant entitlements, including both government-funded and employer-funded components  
• Provide clear guidance on how leave can be structured, including concurrent and flexible options  
• Agree on handover arrangements, key responsibilities, and any interim coverage plans  
• Establish expectations regarding communication during the leave period  

During leave: 

• Offer optional “keeping in touch” opportunities to support connection without creating pressure to return  
• Provide updates on significant organisational or team changes that may impact the employee  
• Respond promptly to any requests for variation or extension of leave  

After leave: 

• Facilitate a structured return-to-work process, including re-induction where necessary
• Support flexible working arrangements in line with legislative requirements and business capacity
• Ensure managers are trained and equipped to manage transitions, including workload allocation and team reintegration
• Monitor employee wellbeing and engagement in the initial period following return

A consistent, well-managed lifecycle approach ensures that parental leave is not treated as a one-off administrative event, but as a critical employee experience moment with long-term organisational impact.

How can Business Chamber Queensland help? 

Shared parental leave has become an operational reality for Queensland businesses. With up to 26 weeks of government-funded leave now shareable between parents, and increasing expectations around flexibility, employers must adapt. 

Business Chamber Queensland can assist employers modernise their policies and practices to be in a better position to: 

• Attract and retain skilled employees  
• Support gender equality in the workplace  
• Reduce disruption through proactive workforce planning 

Employers can contact the Workplace Relations team for more information.