As Australia expands the Paid Parental Leave scheme to 26 weeks by July 2026, further policy development will be important for improving gender equality, according to a new report by Dr Sarah Duffy and Danielle Howe from Western Sydney University.
The report, argues that parental leave policy is not simply a workplace entitlement but a structural driver of gender equality, workforce participation and family wellbeing.
While acknowledging recent improvements to the scheme, the report finds low payment rates and limited duration still force many families to rely on employer support or savings. The report argues this reinforces unequal access and traditional gender roles. Australia’s scheme, compared to other countries also fails to accommodate or support when families have multiple births or if the mother or baby might require extra time in hospital due to complications.
Possible policy opportunities outlined include extending leave to 12 months at wage replacement rates, reserving a dedicated portion for fathers, strengthening return-to-work support and normalising fathers’ participation in caregiving.The report suggests practical ways to reduce the domestic load on families and recommends providing additional support for multiple births or families who experience health complications for mother or baby.
“Paid parental leave is a critical lever for gender equality,” Dr Duffy said. “Recent changes are a step forward but more needs to be done to ensure families have real choice and equitable outcomes. Our report outlines various policy opportunities to build a more inclusive paid parental leave system for the benefit of all families.”
Marianna Brungs, acting Head of Social Policy at APPI, said the report builds on the evidence base of the benefits of ongoing reform in this space. “Australia has made meaningful progress in expanding paid parental leave, but this report highlights how parental leave policy shapes far more than time away from work. It affects workforce participation, gender equality, family wellbeing and long-term economic outcomes that have long-term implications for Australia.”
The report concludes that strengthening the system over time could improve workforce participation, reduce the gender pay gap and support healthier, more equitable families.
