The Australian Government has introduced a Paid Parental Leave (PPL) proposal for new parents with a child or children born after the 1st of January 2011. Whilst this benefit will not be available to all primary carers, it is available to primary carers who;
- have been in paid work continuously for at least 10 of the 13 months prior to the expected birth or adoption of the child; and
- have undertaken at least 330 hours of paid work in the 10 month period (this is equivalent to approximately one full working day per week)
Based upon the primary carer’s adjusted taxable income for the previous financial year, Parental Leave Payments will be means tested on an income of $150,000. Payments are then allocated on a case-by-case basis up to a maximum of $543.78 per week – the current Federal Minimum Wage for adults.
Payments are then provided on a weekly basis from the Government direct. Future plans suggest that payments may also be available via the employer; the Government will allocate the employer their lump sum for the particular employee to be paid on a weekly basis.
Primary carer’s hoping to benefit from the PPL scheme should apply directly to the Family Assistance Office, and also speak with their employer to determine the most suitable way for payments to commence. Information for employers and their obligations can be found here. New primary carer’s may wish to consider whether to apply for Paid Parental Leave or the Baby Bonus. This Estimator Tool may assist you to make that decision. We recommend you review this link to obtain all the information you require prior to utilising the Estimator Tool.
