Guide to Paid Parental Leave scheme
Australia's first national Paid Parental Leave scheme helps working parents spend more time at home with a new baby in the vital early months. It is fully government-funded and helps employers retain valuable staff.
The scheme provides eligible parents with up to 18 weeks Parental Leave pay at the National Minimum Wage (which was $605.50 a week before tax -current at April 2013 - but is subject to change, so check the Family Assistance website for up-to-date information).
Paid Parental Leave:
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Families who are not eligible for Paid Parental Leave, or who choose not to take it, can still access the Family Tax Benefit (Part A and B) under the usual rules.
Article: Paid Parental Leave vs the Baby Bonus: Which is best for you?
Case studies: Read these hypothetical case studies to see who is eligible
Worked examples: See some worked examples to help determine if you are better off under the scheme
Make sure you're on track with our Paid Parental Leave Checklist
*UPDATE* The Government is set to abolish the Baby Bonus as of March 1 2014 - read more in this blog - Federal government scraps baby bonus. Paid Parental Leave will not be affected.
Who is eligible?
Primary carers of babies born on or after 1 January 2011 may be eligible for Paid Parental Leave. Mothers, or the initial primary carer of a recently adopted child, must usually apply for Paid Parental Leave.
Parents may be eligible if they:
- are the mother of a newborn child or are the initial primary carer of a recently adopted child
- have met the Paid Parental Leave work test before the birth or adoption occurs
- have an individual income of up to $150,000 in the previous financial year, and
- are an Australian resident
What is the work test?
The Paid Parental Leave work test will be met if a parent:
- worked continuously for at least 10 of the 13 months prior to the birth or adoption of their child, and
- worked at least 330 hours in that 10-month period (just over one day per week), and had no more than an eight-week unpaid break between working days.
What does the Paid Parental Leave scheme mean for employers?
Parental Leave pay will generally be administered by the employer for
long-term employees. The Family Assistance Office will provide Paid
Parental Leave funding to employers in advance.
See the Centrelink website for Paid Parental Leave information for employers
See also:
Guide to Government Family Benefit Payments
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