You may be eligible for Paid Parental Leave, if you:
- are a mother of a newborn child or initial primary carer of a recently adopted child
- are an Australian resident
- have met the Paid Parental Leave work test before the birth or adoption occurs
- have an individual annual income up to $150,000 in the previous financial year, and
- have been on leave or not working from the date you become the primary carer of your child until the end of your period of Parental Leave Pay.
Mothers, or the initial primary carer of a recently adopted child, must usually apply for Paid Parental Leave.
Paid Parental Leave is for eligible working parents, including seasonal, casual, contractor, self-employed, part-time, full-time workers and people who have had multiple employers. People working for a family business (such as a farm) which is not yet generating any income may also be eligible for Paid Parental Leave.
Parents can nominate the period they wish to receive Parental Leave Pay. The pay must be taken in one continuous period. It can start at any time from the date of birth or adoption, and must all be taken within the first 12 months after the birth or adoption.
If the parent returns to work early, their Parental Leave Pay will stop. The unused part of their pay can be transferred to their partner if the partner meets the scheme’s eligibility criteria and claims the unused Parental Leave Pay.
Paid Parental Leave is not a leave entitlement. The scheme provides parents with Parental Leave Pay which, if a parent is still employed, they can decide how to combine with paid and unpaid leave provided by their employer, such as unpaid parental leave under the National Employment Standards.
Eligible parents may receive Paid Parental Leave before, after, or at the same time as employer-provided paid leave such as maternity leave, annual leave and long service leave, and employer-provided unpaid parental leave.
Long-term employees will receive their Parental Leave Pay from their employer. Other eligible parents will receive their Parental Leave Pay from the Family Assistance Office.
Working parents will be able to choose whether to claim Paid Parental Leave or the Baby Bonus, depending on which is better for them. To help work this out, an online estimator is available.
Parents who are not eligible for Paid Parental Leave, or who choose not to receive it, may be eligible for the Baby Bonus and other family assistance under the usual rules.
Claims can be lodged up to three months before the expected date of birth or adoption for children born or adopted on or after 1 January 2011. You can claim online or at your local Family Assistance Office.
Parents are encouraged to lodge their claim for Paid Parental Leave before their child arrives so their payments can start on time.
More information is available from www.familyassist.gov.au or call the Family Assistance Office on 13 61 50.
More information about employment entitlements, workplace obligations and the National Employment Standards is available from www.fairwork.gov.au or call 13 13 94.
Paid Parental Leave scheme
Frequent Asked Questions (FAQs)
General FAQs about the Paid Parental Leave scheme
From 1 January 2011, Australia’s first national Paid Parental Leave scheme will start. It’s a new entitlement for working parents funded by the Government. Legislation for the scheme came into force in July 2010.
Q: What is the Paid Parental Leave scheme?
The Australian Government will deliver Australia’s first national Paid Parental Leave scheme from
1 January 2011. The scheme provides Parental Leave Pay, which:
• is funded by the Australian Government
• is, in most cases, for mothers who have been working before the birth of their child
• can be transferred to the other parent
• is paid at the National Minimum Wage – currently $570 a week before tax
• lasts up to 18 weeks
• can be taken any time in the first year after birth
• is also available to adoptive parents.
Q: What are the benefits of a Government-funded Paid Parental Leave scheme?
By providing time for parents to spend at home with their new born baby the scheme will help promote early childhood development and maternal health.
The Government’s Paid Parental Leave scheme will help employers enhance the family friendly workplace conditions many already offer.
The scheme will provide long-term benefits for business as more women of child bearing age stay connected with the workforce and their careers. It will help employers retain their skilled staff.
Q: Who is eligible for the scheme?
Mothers of babies born on or after 1 January 2011 may be eligible for Parental Leave Pay. The initial primary carer of a child under 16 years of age who is adopted on or after this date may also be eligible.
You may be eligible for Paid Parental Leave if you:
• are the mother of a newborn child or initial primary carer of a recently adopted child; and
• are living in Australia and you are an Australian citizen or permanent resident.
• have met the Paid Parental Leave work test before the birth or adoption occurs; and
• have an individual income of $150,000 a year or less; and
• are on leave or not working from the time you become the child’s primary carer until the end of the Paid Parental Leave period
You may be eligible even if you are no longer employed. Women in seasonal, casual,
contract and self-employed work may be eligible.
Decisions that people make now about work could affect their eligibility for the Paid Parental Leave scheme.
Q: What is the work test?
You meet the Paid Parental Leave work test if you have:
• worked for at least 10 of the 13 months prior to the birth or adoption of your child; and
• worked at least 330 hours in that 10 month period (just over one day per week) with no more than an eight week gap between two consecutive working days.
A working day is a day on which you worked for at least one hour.
Q: Does the scheme cover all people who work?
You may be eligible for the scheme if you:
• are a full-time, part-time, casual or seasonal worker
• have multiple employers
• are a contractor or self-employed
• have recently changed jobs, or
• are between jobs, and
• meet the Paid Parental Leave work test and other eligibility criteria.
Parent specific FAQs about the Paid Parental Leave scheme
Q: If I already receive maternity leave from my employer, am I still eligible for the Paid Parental Leave scheme?
Yes, you will be able to receive Parental Leave Pay before, after or at the same time as employer-provided paid leave such as annual leave, long service leave and paid and unpaid parental leave.
Q: Can I still work whilst receiving Parental Leave Pay?
No. You will not be able to work while receiving Parental Leave Pay, but you may engage with the workplace under the ‘Keeping in Touch’ provisions.
Q: What if I have to return to work before the end of the 18 weeks?
If you return to work before you have received all of your 18 weeks of Parental Leave Pay, your payments will stop. If you return to work early your unused Parental Leave Pay may be transferred to your partner if your partner meets the schemes eligibility criteria and claims the unused Parental Leave Pay.
Q: Is my partner eligible for Parental Leave Pay?
Parental Leave Pay can be transferred to the child’s other parent to give families more options to balance work and family. The transfer can even occur before the start date of the Paid Parental Leave period. In this case an eligible partner could claim and receive the full 18 weeks of Parental Leave Pay.
A transfer of Paid Parental Leave can occur if you have claimed and are eligible to receive Paid Parental Leave and:
• you have not used all (or any) of your Parental Leave Pay; and
• your partner becomes the primary carer of your child; and
• your partner is eligible under the residency, income and work tests to receive Parental Leave Pay from the time they become the primary carer, and
• your partner claims Parental Leave Pay
For example, a mother may decide that she will take Parental Leave Pay for the first 14 weeks and then return to work. The remaining four weeks of Parental Leave Pay may be transferred to the father, provided he is eligible and is the primary carer, and lodges a claim
Claims for Paid Parental Leave must usually be submitted by the child’s mother or in the case of adoption, the parent who is the initial primary carer. If you wish to transfer unused Parental Leave Pay to your partner, they will also need to lodge a claim.
Q: If I take Paid Parental Leave, can I still get the Baby Bonus?
Parental Leave Pay and the Baby Bonus cannot be paid for the same child. If you meet the eligibility criteria for both payments, you can choose which payment is the best financial decision for your family.
Most eligible families will be better off receiving Parental Leave Pay rather than Baby Bonus. You should check the Paid Parental Leave Comparison Estimator at www.familyassist.gov.au to work out which payment is best for your family.
If you choose to receive Parental Leave Pay, you will not be eligible for Family Tax Benefit Part B and the dependent spouse, child housekeeper and housekeeper tax offsets during the 18 week Paid Parental Leave period.
Q: What if I am not eligible for Paid Parental Leave?
The existing family assistance arrangements remain. If you are not eligible for Parental Leave Pay or choose not to receive it, you may be eligible for the Baby Bonus and Family Tax Benefit (Part A and Part B) under the usual rules.
Q: If I’m eligible for the Paid Parental Leave scheme, what do I need to do?
Before you claim Paid Parental Leave, you should plan your caring and work arrangements for the 12 months following the birth or adoption. You should organise your leave from work at least 10 weeks before you want your leave to start.
You should lodge your claim with the Family Assistance Office before your child arrives. Lodging a claim for Parental Leave Pay before your child is born or adopted will help prevent any delay in providing Parental Leave Pay.
Q: Where can I get further information?
For more information go to www.australia.gov.au
