These scenarios are provided to demonstrate how the Paid Parental Leave scheme works in different family situations. No real names or circumstances are used in these examples.
Amanda, George and baby Sarah
Amanda and George have been working for several years prior to the birth of their first child, Sarah, on 5 August 2011.
Amanda and George earned $52,000 a year each prior to the birth of their baby. Amanda is not eligible for paid maternity leave from her employer. She is eligible for Parental Leave Pay and receives taxable pay of $570 per week for 18 weeks, a total of $10,260 (before tax). These begin from her first full pay period after Sarah’s birth.
Amanda cares full-time for her daughter and does not return to work before 30 June 2012.
In the financial year of Sarah’s birth, Amanda and George receive around $2,062 more in net family assistance and Parental Leave Pay, than they would have without Parental Leave Pay.
Michelle, Chris and baby Joel
Michelle has been a nurse for seven years, earning around $60,000 a year. Her partner, Chris, has been a labourer for nine years, earning about $30,000 a year. Michelle and Chris have their first baby, Joel, on 1 August 2012.
Michelle takes four weeks recreation leave prior to the birth. She also is entitled to six weeks paid maternity leave from her employer and she takes this from the date of birth. Michelle is eligible for the Paid Parental Leave scheme and decides to take her 18 weeks of Parental Leave Pay after her paid maternity leave is finished, starting six weeks after Joel is born.
At 15 weeks after Joel’s birth, Michelle has the opportunity to accept a promotion to a nursing position with an annual salary of $70,000. Chris and Michelle decide it would be better if Chris took unpaid leave to care for Joel and Michelle returns to full-time work. Michelle has received nine weeks of Parental Leave Pay at this stage.
Chris is eligible for the Paid Parental Leave scheme and Michelle is able to transfer her unused Parental Leave Pay to him. He receives the remaining nine weeks of Parental Leave Pay and uses unpaid leave to look after Joel until he is one year old.
By using the Paid Parental Leave Comparison Estimator, Chris and Michelle have found that they are better off financially if they claim Parental Leave Pay.
Erin, Todd, Michael and baby Katherine
Erin and Todd have two children, Michael and Katherine. Katherine was born around two years after Michael. Todd has an annual salary of $60,000 and Erin has not returned to work since Michael’s birth.
Erin is not eligible for Parental Leave Pay but will receive the Baby Bonus and other family assistance. Her family receives around $13,226 in family assistance in the financial year of Katherine’s birth.