The Federal Government’s Paid Parental Leave Scheme provides up to 18 weeks of paid leave if you are having or adopting a child. Several changes are being made to the paid parental leave scheme to provide for greater flexibility and eligibility to the scheme, which had been criticized for not catering for the various ways in which parents take leave to care for newly born/adopted children (i.e. it is not just birth-mothers who will have caring responsibilities).
What’s new?
From 1 July 2023, the current entitlement to 18 weeks paid parental leave pay will be combined with the current Dad and Partner Pay entitlement to 2 weeks’ pay. This means partnered couples will be able to claim up to 20 weeks of paid parental leave between them. Parents who are single at the time of their claim can access the full 20 weeks. These changes affect employees whose baby is born or placed in their care on or after 1 July 2023.
The main changes are as follows:
- The existing maximum 18 weeks’ parental leave pay will be combined with the two weeks’ father and partner pay to provide a single 20-week scheme, to be shared between each parent.
- Parents will be able to receive a maximum of 18 weeks’ parental leave pay each, and a maximum of 20 weeks’ parental leave pay between them.
- For example, one parent could receive 18 weeks’ pay, and one parent’s 2 weeks’ pay, or both parents could receive 10 weeks’ pay each, etc.
- Employees who are single at the time they claim will be able to receive the full 20 weeks’ parental leave pay.
- The fixed 12-week parental leave pay period (and the requirement to not return to work in order to be eligible) will be abolished, meaning that claimants can receive parental leave pay in multiple blocks, of at least a day at a time, up to two years from the birth or adoption of their child.
- The means test for eligibility will be amended by introducing a $350,000 per annum family income test under which claimants can qualify for parental leave pay if they do not meet the individual income test.
- Eligible fathers and partners will be able to access parental leave pay regardless of whether the birth parent meets the income test or residency requirements.
If you are eligible for the Paid Parental Leave Scheme, you still have the right to take up to 12 months of unpaid leave from your work. There is nothing to stop you from accessing both at the same time.
Services Australia is the government organisation that manages the paid parental leave scheme. For more information on the changes, visit Services Australia