Prime Minister Anthony Albanese on Saturday announced he will move to expand the paid parental leave scheme from 18 to 26 weeks for single parents, or shared between two partners, from 2026.

But with even that rate placing Australia behind the OECD average, Mr Albanese described the development as "the foundation, the baseline" in fixing its paid parental leave system.

The Parenthood executive director Georgie Dent praised the announcement as a major "recognition" Australia's paid parental system had been neglected for a decade.

Ms Dent said the 18-week entitlement - introduced in 2011 - was intended as a minimum to be built upon, but lamented a lack of progress in the interim.

"It's very clear this is not perfect. But it is so much better that this is on the table, that a commitment is being made," Ms Dent said.

"Today's announcement is really significant. We have not had any meaningful amendment to paid parental leave for 11 years."

The pledge follows the September jobs and skills summit, where unions, business leaders and politicians made paid parental leave a rare point of consensus.

Ms Dent, who attended the summit, said she was encouraged by the fact paid parental leave was discussed both as a health and economic reform.

"Decent paid parental leave enables parents to adjust in that first year of life, but then return to work," she said.

"You see a much higher participation rate among mums. And in Australia right now, there is no bigger opportunity when it comes to increasing productivity than to tap into working mothers."

Male and female parents in Finland, considered a world leader on paid parental leave, are each entitled to 160 days. The UK offers 39 weeks at a minimum.

Ms Dent said a policy allowing parents to share a full year of paid leave would be world-leading, but accepted that target was currently "very ambitious".

"If you give families that 12 months and it's shared between parents, you get a really consistent attachment and participation in paid work from both parents," she said.

"The situation we have in Australia right now is when a baby comes along, a dad's working pattern and income increases quite dramatically, and a woman's decreases really dramatically."

Ms Dent stressed "a bright spot" in recent years was a concerted effort from some large employers' "really generous" schemes, while making it easier for fathers to take extended leave.

"But that is a minority of employers. It's a lucky few who have access to that," she said.

Addressing the NSW Labor conference in Sydney, Mr Albanese said he was also buoyed by seeing workplaces compete to give working parents the "best possible deal".

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The Prime Minister described the plan, to be unveiled in this month's budget, as a "modern policy, for modern families".

"Our plan will mean more families take up this leave, share in that precious time, and share the caring responsibilities more equally," he said.

"A parental leave system that empowers the full and equal participation of women will be good for business, good for families and good for our economy."