Parental Leave Pay

Parental Leave Pay

Parental Leave Pay (Oct 2010)

As of 1 January 2011 the Australian Government will introduce an Parental Leave Pay scheme.

Parental Leave Pay

After 1 January 2011 eligible working Australians will now be able to apply to the Family

Assistance Office for 18 weeks Government funded Parental Leave Pay. Parental Leave

Pay will be paid at the rate of $570 per week before tax and can be taken anytime within the

first year of the birth or adoption.


An employee may be eligible for Parental Leave Pay if they are:

• the primary carer of a newborn child or recently adopted child

• are an Australian resident

• have met the Paid Parental Leave scheme work test before the birth or adoption


• have received an individual adjusted taxable income of $150,000 or less in the

previous financial year, and

• are on leave or not working from the time you become the child’s primary carer.

The primary carer of the newborn or adopted child is the person who is most meeting the

child’s physical needs.

For an employee to meet the Parental Leave Pay scheme work test they must have:

• worked for at least 10 of the 13 months prior to the birth or adoption of your child, and

• worked for at least 330 hours in that 10 month period (just over one day a week), with

no more than an eight week gap between two consecutive working days.

PLEASE NOTE: The scheme does not change any of an employees’ existing leave

entitlements. That means that if an employer currently offers paid

maternity or parental leave through an industrial agreement, they

cannot withdraw the entitlement for the life of that agreement.

How Payment Will Be Delivered

From 1 January 2011, employees can apply to the Family Assistance Office for Parental

Leave Pay. If the employer agrees, the employer can make these payments to the eligible

employee and receive reimbursement from the Australian Government. However, from 1

July 2011, employers must provide the employee with the Parental Leave Pay if the

employee has worked with that employer for a period of at least 12 months prior to the

expected date of birth or adoption of the child and the employee will be receiving at least

eight weeks of Parental Leave Pay. The employer will be reimbursed by the Australian

Government for all Parental Leave Pay.

Claiming the Parental Leave Pay

An eligible employee can lodge a claim up to three months before the expected date of birth

or adoption of the child. The Parental Leave Pay can start from the day the child is born or

adopted, or a later date. However, it must be fully paid within 52 weeks from the date of birth

or adoption.

How Will This Effect Employers

From 1 July 2011, employers are obligated to provide Parental Leave Pay to all eligible

employees whom have been employed by the employer for a period of at least 12 months.

The Parental Leave Pay will be paid directly to the eligible employee through their usual

payment cycle. The employer will be reimbursed for all Parental Leave Pay payments made

to staff by the Australian Government through the Family Assistance Office.

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