Annual leave in Australia: do workers have enough time off?

April 27, 2026adminCareers

For most of us, the summer holidays never feel long enough. It has led some to propose that workers be awarded an extra week of annual leave each year.

This is seen as a way to make up for the vast amount of unpaid overtime Australians work, while also improving overall wellbeing. Some companies have already begun moving in this direction, expanding leave entitlements for their staff.

However, critics argue the proposal could create more issues than it solves, particularly for businesses already under pressure and managing rising costs.

So, do Australian workers have enough time off, or would expanding leave entitlements create more problems than it solves?

What’s behind the proposal?

The Australian Council Of Trade Unions is leading a push to have Australian workers awarded five weeks a year of annual leave up from the current four.

They say rising work pressures and longer hours aren’t accounted for in current entitlements, which haven’t been altered since 1974.
In recent years, there has been growing discussion around work-life balance in Australia. Many employees report feeling increasingly stretched, with longer hours and higher workloads becoming more common across a range of industries. . While technology has made it easier to stay connected, it has also blurred the boundaries between work and personal life.

On average, workers perform 4.5 weeks of unpaid overtime each year. Among workers aged 18 to 24 this rises to an average of 6.4 weeks every year.

Proponents argue extra leave would give workers more time to manage important commitments outside of work. They argue this could help to reduce the risk of employee burnout and in turn improve productivity at work.

They also argue that many European countries now have greater annual leave entitlements than Australia.

Are there any concerns?

Critics argue that simply adding an extra week of leave will not address underlying issues around overwork. Instead, it could simply lead to workers having to complete a year’s worth of work in 47 weeks instead of 48.

Economists have also estimated that an extra week’s annual leave could increase labour costs by 2% annually. Business leaders warned that these additional costs would have to be passed onto consumers at a time when cost-of-living pressures are already high.

There is also the issue that many workers often struggle to fit their existing leave entitlements into their schedule.

Many argue that now is simply the wrong time to introduce a change like this with inflation at all time highs and productivity low. Experts also warn many businesses are under increasing pressure and Australians are facing declining living standards.

“An extra week off will solve none of these problems,” Australian Industry Group Chief Executive Innes Wilcox told News.com.au.

“It would just make them worse.”

While the debate around annual leave entitlements continues, it highlights a broader point for job seekers. Workplace conditions such as leave, flexibility and overall work-life balance are becoming increasingly important when evaluating a role.

Taking these factors into account can help you make more informed career decisions and find a position that better supports your long-term wellbeing.

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