How changes to Paid Parental Leave will affect your business
How new parents can access government paid parental leave has changed.
From 1 July 2023, partnered couples can claim up to 20 weeks’ 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. If your baby was born, or came into your care, before 1 July 2023, the previous system will apply.
If you’re sharing your Parental Leave Pay days with someone else, you can take up to 10 days at the same time.
RELATED ARTICLES
- INFIX: Why your business needs a capability statement
- Your award wage questions answered
- Sparkies urge government to look to future
The former Dad and Partner Pay entitlement has been removed. The additional two weeks’ pay has been combined with the existing entitlement to 18 weeks Parental Leave Pay.
What else has changed
The income test, work requirements and who can access the payments have also changed.
These include:
- allowing partnered employees to claim a maximum of 20 weeks’ pay between them, with each partner taking at least two weeks (except in some circumstances)
- introducing a $350,000 family income limit (indexed annually from 1 July 2024) for claiming paid parental leave pay
- expanding the eligibility rules for fathers or partners to claim paid parental leave pay
- making the whole payment flexible so that eligible employees can claim it in multiple blocks until the child turns two
- removing the requirement to return to work to be eligible for the entitlement.
More changes to Paid Parental Leave, including increasing leave available to families to 26 weeks by 2026, have been proposed but are subject to Parliament passing legislation.
Where to learn more
Services Australia is the government organisation that manages the paid parental leave scheme. For more information on the changes, visit Services Australia – Changes if you get family payments.
- Read more about Parental Leave Pay for a child born or adopted before 1 July 2023
- Read more about Parental Leave Pay for a child born or adopted from 1 July 2023.
Master Electricians can access an updated information sheet about Paid Parental Leave in the MEA Hub. If you have questions about leave the MEA Employer Advice Hotline can help. Phone 1300 889 198 today.