Most Australian couples plan their PPL the same way: mum takes all 26 weeks, dad takes the 2 reserved weeks and his employer leave. It's the cultural default. It's also, for many couples, the wrong answer financially.
This guide walks through how PPL splits actually work, the rules from 1 July 2026 (and the 1 July 2025 reserved-weeks change that's already in force), and the bracket-by-bracket logic for getting more after-tax income from the same total weeks.
The basic shape of a PPL split
From 1 July 2026, the total government PPL entitlement is 130 days (26 weeks) at $189.62/day = $948.10/week. (For babies born 1 July 2025 to 30 June 2026 it's 120 days / 24 weeks. For babies born before 1 July 2025 it was 100 days / 20 weeks. The PPL Planner handles the transition automatically.)
That 26 weeks can be split between two parents in any pattern they choose, with three constraints:
- Reserved weeks for the other parent. From 1 July 2025, 10 days (2 weeks) are reserved for the "other" parent — usually the father or non-birth parent. If they don't take their 2 weeks, those days are lost. The primary parent cannot take them.
- Concurrent cap. Both parents can be on PPL at the same time for up to 4 weeks ("concurrent PPL"). Beyond that, only one parent can be on PPL at a time.
- Both parents must individually qualify. Each parent has to pass the work test (10 of 13 months, 330 hours) and the individual income test ($175,788 for 2025-26) on their own. The family income test ($364,350 from 1 July 2025) caps combined incomes.
The "mum takes all" default
About 75% of Australian families have the birth parent take the full primary PPL entitlement, leaving the partner with just the reserved 2 weeks plus whatever employer leave they have. There are good reasons:
- Recovery from birth and breastfeeding establishment
- The cultural expectation
- Many fathers have generous employer-paid leave so they "don't need" PPL
- Sheer admin friction — running two PPL claims is more work than one
But there are also good reasons NOT to default to this:
- The after-tax math often favours a different split
- The non-birth parent's career trajectory benefits from longer hands-on parenting time
- Childcare transition is easier when both parents have been the primary carer at different points
The after-tax angle (the bit most couples miss)
PPL is taxable income. It's added to your other income for the financial year and taxed at your marginal rate.
This means the same week of PPL is worth more after tax to the lower earner than the higher earner.
Consider a couple where mum earns $130k pre-tax and dad earns $60k pre-tax. They have 22 weeks of "transferable" PPL to allocate between them (after the 2 reserved weeks for dad and assuming dad's 2 weeks come on top of those 22).
Scenario A — mum takes all 22 weeks (the default):
- Mum's PPL: 22 × $948.10 = $20,858
- Added to her $130k income → taxed at 37% marginal rate + 2% Medicare = $20,858 × 0.39 = $8,135 in tax
- After-tax PPL to household: $12,723
Scenario B — couple splits, dad takes 12 weeks, mum takes 10 weeks:
- Mum's PPL: 10 × $948.10 = $9,481 → taxed at 37% + 2% = $9,481 × 0.39 = $3,698 tax
- Dad's PPL: 12 × $948.10 = $11,377 → added to his $60k income → taxed at 32.5% + 2% = $11,377 × 0.345 = $3,925 tax
- Total tax: $7,623
- After-tax PPL to household: $13,235
Scenario B is $512 more after tax for the same total weeks. Same baby. Same total PPL dollars. Just allocated to the partner in the lower bracket.
The bigger the bracket gap, the bigger the win. A couple where mum earns $180k and dad earns $40k can be $2,000-$3,000 better off by shifting more PPL to dad. The PPL Planner (/dashboard/parental-leave) calculates the exact split for your incomes.
What about the bracket "step down" trick?
Some couples ask: can the higher earner go on unpaid leave to drop into a lower bracket, then take PPL in that lower bracket?
Yes — but the maths usually doesn't work out. PPL is the dollars per week, not the bracket position, that matters. Going from $130k to $80k (i.e. taking 5 months unpaid) just to drop a bracket means giving up much more in unpaid wages than you save in tax. The bracket-step trick only really makes sense if you were already planning extended unpaid leave for other reasons (extending leave, returning slowly, etc).
Common split patterns
These are the most common splits we see modelled in the Planner:
| Pattern | Birth parent | Other parent | Best for |
|---|---|---|---|
| Default (mum takes all) | 24 wks | 2 wks reserved | Couples where partner has generous employer leave AND brackets are similar |
| Light dad take | 22 wks | 4 wks | Couples wanting partner present for first 2 weeks + last 2 weeks |
| Moderate split | 18 wks | 8 wks | Couples planning a graduated handover at month 4 |
| Even-ish split | 14 wks | 12 wks | Couples where the second earner is in a lower bracket — after-tax winner |
| Reverse default | 6 wks | 20 wks | Where birth parent's career has higher cost of being away (specialist roles) OR brackets favour reverse |
| Concurrent block | 26 wks (with 4 wks overlap) | 4 wks concurrent + 0 sequential | Couples wanting 4 wks together right at birth + return-to-work jointly |
The Planner shows the after-tax dollar outcome of each pattern for your specific incomes. It's not always obvious which one wins.
The reserved 2 weeks — use them or lose them
This is worth saying clearly: from 1 July 2025, 10 days (2 weeks) of PPL are reserved for the "other" parent. If the other parent doesn't take them, those 2 weeks are gone. They can't be transferred to the birth parent. They can't be cashed out. They can't be deferred.
This catches couples who plan around "dad doesn't take any time off, just his annual leave." Under the old rules that was fine. Under the new rules, you're leaving $1,896 (2 × $948.10) on the table.
The reserved weeks can be taken any time up to the child's 2nd birthday. So even if dad can't take them in the early months, he could take them at 18 months, or split into single weeks at multiple points.
Same-sex couples and non-birth parents
The rules are the same. Both parents (whether birth and non-birth, or both non-birth in surrogacy/adoption) can claim PPL provided each individually meets the work test and income test.
The "reserved 2 weeks for the other parent" applies equally. In same-sex couples with two birth-mothers from different pregnancies, each is the "primary" parent for their own baby and the "other" parent for the partner's baby.
Self-employed parents
PPL works the same for self-employed parents — same eligibility tests, same split rules. The difference is admin:
- Self-employed parent claims PPL directly from Services Australia (Centrelink pays into bank account)
- Employed parent's PPL may be paid by the employer on Centrelink's behalf (employer paymaster scheme)
- Self-employed parent has to do bookkeeping for the PPL income at tax time
- Self-employed parent can stop billing clients during PPL weeks (effectively making PPL the only income that week) which can simplify the tax bracket maths
See also: PPL for the self-employed for the full mechanics.
What to do next
- Run your numbers in the PPL Planner with at least 3 split scenarios — default, even-ish, and reverse — to see the after-tax outcomes for your incomes.
- Discuss the result with your partner. The Planner has a "share scenario" link that opens the side-by-side view on their device.
- Once you've agreed on a split, lodge separate PPL claims with Services Australia (or via your employer's paymaster) for each parent's portion.
- If the brackets are close (within $20k), the after-tax win is small and the decision can be made on non-financial grounds (career, recovery, partner bonding).
Related guides
- When can I claim PPL? — claim timing and lodgement
- PPL income test explained — individual + family income caps
- PPL work test explained — the 10 of 13 months rule and exceptions
- Government PPL vs employer parental leave — how to sequence them
- PPL super contribution — the 12% paid on PPL from 1 July 2025