Introducing the Paid Parental Leave Scheme

Taking time away from work for a new baby is a common part of working life. Paid Parental Leave will help parents spend more time at home with a new baby, and help employers keep skilled and valuable staff.The Paid Parental Leave scheme was passed by Parliament in June 2010, and will be introduced from 1 January 2011.  

v  Here is a summary on the changes :- 

·  The scheme will provide up to 18 weeks Parental Leave pay at the National Minimum Wage ($570 a week before tax from 1 July 2010) for eligible parents of children born or adopted on or after 1 January 2011.

 ·  From the 1 October 2010 claims can be lodged by parents (up to three months in advance of the expected birth or adoption).

 ·  As  of the 1 July 2011: Employers will be responsible for providing Parental Leave pay to their long term employees (i.e. those with 12 months service with their employer).  

v  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.

v  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 to more than an eight week unpaid break between working days.