New parents will be eligible for 26 weeks of combined paid leave from July 1, with mums and dads receiving a minimum wage of about $1000 a week during their time off work.
As One Nation's leader came under fire for saying it was "fair enough" for women not to be paid while taking time off, Prime Minister Anthony Albanese met with mum Anne Barker and her baby Zoe at Parliament House, while spruiking the upcoming leave extension.
Surrounded by a group of babies of Labor MPs, Social Services Minister Tanya Plibersek said an increase to the 26 weeks of government-funded leave wasn't off the table.
"We always look for ways of doing more to support families when we can," she told reporters.
"We need to protect what we already have."
The increase to 26 weeks is the last scheduled update to paid parental leave outlined in legislation the federal government passed in 2022.
Of the 26 weeks, at least four weeks are reserved for the father or non-birthing parent on a use it or lose it basis.
The scheme now costs the government $5 billion per year, according to Ms Plibersek.
After her controversial comments made at the National Press Club a week ago, Senator Hanson on Wednesday said she had always fully supported paid parental leave, provided it didn't burden businesses.
"I've got no problem with it, I've always fully supported it," she told Sky News.
"If it's put on big business or any business at all, parental leave, they wouldn't be able to afford it, the cost to businesses these days is extremely hard."
About 700,000 parents voiced concerns over Senator Hanson's comments to advocacy group The Parenthood, the organisation's senior director Tegan Gilchrist told AAP.
But businesses and working families should both be on the same side of the debate about offering generous parental leave, Ms Gilchrist said.
"For many small businesses, the boardroom is the family dining table", Ms Gilchrist told AAP.
"This is a win-win, and it's a false fight to pit these two things against each other."
The Parenthood want the program extended to 12 months, and allow parents to split time off between them as they please.
Australia is still falling short on international standards around leave for mothers, Ms Gilchrist said, which the World Health Organisation says should be a full 26 weeks.
Four weeks off for fathers also doesn't stack up, the Parenthood senior director told AAP.
Parents on leave should be paid based on how much they earn working normally, rather than minimum wage, according to Ms Gilchrist, saying it pressures the lower-paid parents to cop the pay cut and become the primary carer.
"That locks in a default carer from the beginning," she said.
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