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 $589.40 a week before tax from July 1 2011 - but is subject to change, so check the Family Assistance website for up-to-date information).

Paid Parental Leave: is funded by the Australian Government is, in most cases, available for birth mothers and primary carers who meet the work, income and residency requirements can be transferred to the other parent if they are eligible must be taken in a continuous period, any time within the first year after birth is also available to adoptive parents can be received before, after, or at the same time as employer-provided paid leave such as recreation or annual leave and employer-provided maternity leave.

Families who are not eligible for Paid Parental Leave, or who choose not to take it, can still access the Baby Bonus and 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

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

Paid Parental Leave can be transferred to another primary carer, if eligible.


What is the work test?
The Paid Parental Leave work test will be met if a parent:

1. worked continuously for at least 10 of the 13 months prior to the birth or adoption of their child, and
2. 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.

Paid Parental Leave will be for eligible working parents, including full-time, part-time, seasonal and casual workers, contractors, the self employed, and people who have had multiple employers.

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.

The scheme will help employers enhance the family-friendly workplace conditions many already offer. Paid Parental Leave can be taken in addition to existing employer-funded schemes, at the same time or consecutively.

See the Centrelink website for Paid Parental Leave information for employers

See also:
Guide to Government Family Benefit Payments

Further information is available for parents and prospective parents on the Family Assistance Website or by calling FAO on 13 61 50.  Employers can call FAO on 13 11 58.