Legislation for Australia’s first Paid Parental Leave scheme has passed through the Parliament.

Federal Member for Grayndler Anthony Albanese said it was a historic piece of reform and would be welcomed by young families in the Inner West.

“It isn’t always easy to get reform through, particularly with obstructionist opposition parties but I am proud to be part of a government that is delivering real solutions such as this,” said Mr Albanese.

The Government's scheme provides up to 18 weeks’ Government-funded parental leave pay at the National Minimum Wage (currently $570 per week) for eligible parents of children born or adopted on or after 1 January 2011.

Casual and part-time workers, contractors and the self-employed will be eligible for Paid Parental Leave, many for the first time.

The scheme is based closely on the expert recommendations of the Productivity Commission and is in Australia's economic interest.

Mr Albanese said Australian families had waited a long time for this vital piece of legislation which is fair for families and fair to business.

“Parents and newborn babies will benefit from the time they are able to spend together without stressing about returning to work,” said Mr Albanese.

“Businesses will also retain more skilled workers.”