FAQs


What is the Paid Parental Leave scheme?

The Paid Parental Leave scheme is a new Australian Government-funded entitlement for working parents who are the primary carers of children born or adopted from 1 January 2011.

Who is entitled to Parental Leave Pay?

Working parents, including full-time, part-time, self-employed, casual, contract and seasonal workers may be eligible for Parental Leave Pay if they meet the scheme’s eligibility criteria.

How much Parental Leave Pay will I receive?

You can receive 18 weeks of Parental Leave Pay at the National Minimum Wage, currently $570 per week. Parental Leave Pay is taxable.

Eligibility

Am I eligible for Paid Parental Leave?

You may be eligible for Parental Leave Pay if you:

  • are the primary carer of a newborn child or recently adopted child
  • are an Australian resident
  • have met the Paid Parental Leave work test before the birth or adoption occurs, and
  • have received an individual adjusted taxable income of up to $150,000 in the previous financial year.

Also, you must be on leave or not working from the time you become the child’s primary carer.

Who is a child’s primary carer?

A child’s primary carer is the person who is most meeting the child’s physical needs. This will usually be the mother of a newborn child or the initial primary carer of an adoped child.

A person may still be eligible for Parental Leave Pay, in the event of a stillbirth or infant death.

If you are a birth mother, there are some circumstances in which you can receive Parental Leave Pay for up to 18 weeks after the birth even if you are not the primary carer of your child. This may occur if you’re unable to care for your child due to illness, or you may be a birth mother in an adoption or surrogacy arrangement.

The Paid Parental Leave Scheme Work Test

Do I meet the Paid Parental Leave scheme work test?

To meet the Paid Parental Leave scheme work test you must have:

  • worked for at least 10 of the 13 months prior to the birth or adoption of your child,
  • worked for at least 330 hours in that 10 month period (just over one 1 a week), with no more than an 8-week gap between 2 consecutive working days.

A working day is a day you have worked for at least 1 hour. There are some exceptions to the work test if you cannot meet it due to pregnancy complications and/or premature birth.

What counts as paid work for the Paid Parental Leave scheme work test?

You can include periods of work if it is done for financial reward or gain, whether in Australia or overseas.

Work for a family business (including a farm) can be included as work even if the business is not yet generating any income.

The following activities will count as work:

  • periods of paid leave taken before the birth or adoption
  • employment at an Australian Disability Enterprise
  • operating a business while receiving assistance under the New Enterprise Incentive Scheme
  • work undertaken for Community Development Employment Projects (CDEP) for continuing participants only
  • farm labour or operating a business while receiving an Exceptional Circumstances Relief Payment
  • jury service, and
  • defence reservist work.

What does not count as paid work for the Paid Parental Leave scheme work test?

The following activities will NOT count as work:

  • unpaid leave or voluntary work
  • activities undertaken for Work for the Dole (including Community Development Employment Projects for new participants),
  • Green Corps,
  • Drought Force,
  • the National Green Jobs Corps, and
  • other income support programs which include a work component will not count as work.

What if I do not work regular days or shifts?

You do not need to be working full-time to be eligible for Parental Leave Pay. You may meet the work test even if you:

  • are a part-time, casual or seasonal worker
  • are a contractor or self-employed
  • work in a family business or on a farm
  • have multiple employers, or
  • have recently changed jobs.

You will need to have worked for at least 1 hour in a day for your employment to be counted as a working day.

What if I work in a family business such as a farm?

If you work for a family business (such as a farm), you can include your hours of work even if the business is not generating any income.

If you work for a family business you can include your hours of work even if the business is not generating any income, providing you are undertaking the work for financial gain or benefit.

Paid Parental Leave Claims

Can my partner claim Parental Leave Pay too?

The unused part of your Parental Leave Pay may be transferred to your partner if they meet the eligibility criteria and claim your unused Parental Leave Pay. The unused Parental Leave Pay may also be transferred to a separated father or their new partner, if eligible.

Can I receive Parental Leave Pay and 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.
In the case of multiple births (for example twins, triplets), you can claim Parental Leave Pay for one child and the Baby Bonus for the other children.

How do I know which payment is best for me?

Most eligible families will be better off receiving Parental Leave Pay rather than Baby Bonus. You should check the Paid Parental Leave Comparison Estimator to work out which payment is best for your family.

How does the Paid Parental Leave Comparison Estimator work?

The Paid Parental Leave Comparison Estimator offers you a comparison between Parental Leave Pay and the Baby Bonus and shows you which payment is likely to benefit your family most.

The Paid Parental Leave Comparison Estimator will estimate how much tax you will pay on your Parental Leave Pay and the reductions in Family Tax Benefit due to receiving Parental Leave Pay. It will compare how much you would get if you take Parental Leave Pay with how much you would get if you take the Baby Bonus after these affects are taken into account.

Find out more about what payments and support the Paid Parental Leave Comparison Estimator does not take into account when you receive Parental Leave Pay.

Will Parental Leave Pay affect my existing payments and support?

You will need to consider how receiving Parental Leave Pay will affect your existing family assistance, child support and taxation obligations.

Parental Leave Pay may affect your:

  • Child Care Benefit
  • Child Support
  • HECS liabilities
  • Medicare Levy Surcharge
  • Public Housing Rent
  • Low Income or other Health Care Cards, or other associated concessions
  • Pensioner, Beneficiary, Dependent Spouse, Housekeeper and Child-housekeeper tax offsets.

The dependent spouse, child-housekeeper and housekeeper tax offsets will not be available during the Paid Parental Leave period.

If you are separated from your child’s other parent and they are receiving Family Tax Benefit Part B, it will not be affected by you receiving Parental Leave Pay.

Parental Leave Pay will not be treated as income for Parenting Payment (partnered and single) and other income support payments, such as the Disability Support Pension, Newstart Allowance and Veterans’ Affairs payments.

When can I claim Parental Leave Pay?

Claims for Parental Leave Pay can be lodged up to 3 months before the birth or adoption of your child.

Why should I claim before my 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.

What happens if my baby arrives before the scheme is introduced?

If your baby arrives before the scheme is introduced on 1 January 2011, you will still be able to receive the Baby Bonus if you are eligible.

How long do I have to claim Parental Leave Pay?

Your Parental Leave Pay can start from the day your child is born or adopted, or a later date. It must be fully paid within 52 weeks from the date of birth or adoption.

To be eligible for the full 18 weeks of Parental Leave Pay, the nominated start date for your Parental Leave Pay needs to be within 34 weeks of the birth or adoption of your child.

How can I claim Parental Leave Pay?

You can claim for Parental Leave Pay using Online Services. You can lodge a claim up to 3 months before the expected date of birth or adoption of your child.

For more information on how to claim Parental Leave Pay or other family assistance payments online, view theClaiming Parental Leave Pay and family assistance online factsheet.

You can call 13 6150 for assistance in completing your online claim form or to request a hard copy form. Alternatively, you can visit the Family Assistance Office located in Medicare offices and Centrelink Customer Service Centres.

What if my circumstances change?

If your circumstances or your caring plans change, you should check the Paid Parental Leave Comparison Estimator to make sure that you are still better off receiving Parental Leave Pay rather than the Baby Bonus.

Can I change my claim to Baby Bonus?

You can change your claim to Baby Bonus if Parental Leave Pay is no longer the right choice for you. You can do this before or after the birth or adoption, but you cannot change to Baby Bonus once your Parental Leave Pay starts.

Receiving Parental Leave Pay and other family assistance

Can I receive Family Tax Benefit Part A as well as Parental Leave Pay?

If you are eligible, you can receive Family Tax Benefit Part A during the Paid Parental Leave period.

Can I receive Family Tax Benefit Part B as well as Parental Leave Pay?

You and/or your partner cannot receive Family Tax Benefit Part B during the Paid Parental Leave period. Family Tax Benefit Part B may be paid after the end of the Paid Parental Leave period.

Will Parental Leave Pay count as income for other family assistance?

Parental Leave Pay will count as income for Family Tax Benefit and other family assistance payments, but not for income support payments.

Your other employer-provided entitlements

Organising leave with your employer

It is important to organise your leave from work. You should try to do this at least 10 weeks before you intend to take leave from work.

If you have worked for 12 months or more for the same employer you are entitled to up to 12 months unpaid parental leave under the National Employment Standards.

Does the Paid Parental Leave scheme give me an entitlement to leave?

The Paid Parental Leave scheme provides you with Parental Leave Pay but does not give you an entitlement to leave.

If eligible, you will receive up to 18 weeks of Parental Leave Pay at the National Minimum Wage. This will complement parents’ existing entitlements to leave, such as unpaid parental leave under the National Employment Standards in the Fair Work Act 2009.

What if I decide to resign?

If you decide to resign before or during your Paid Parental Leave period you can still be eligible for Parental Leave Pay. You will receive your Parental Leave Pay from the Family Assistance Office. You will need to notify the Family Assistance Office of your decision.

About your employer providing Parental Leave Pay

When will my employer be required to provide Parental Leave Pay?

Parental Leave Pay can be provided to you by either your employer in your usual pay cycle or by us in fortnightly payments.

From 1 July 2011, your employer must provide your Parental Leave Pay if you have worked with them for 12 months or more before the expected date of birth or adoption of your child and you will be receiving at least 8 weeks of Parental Leave Pay.

If your employer is not required to provide your Parental Leave Pay, they can still volunteer to provide it to you. You and your employer must agree for this to happen. This applies both before and after 1 July 2011.

What payment notification will I receive from my employer?

Your employer must give you written notification each time you are paid Parental Leave Pay. Your employer may use your usual pay slip to notify you of the payment. They may also use other written types of notification, including electronic formats such as email or online payslips.

Your employer must give you written notification of your Parental Leave Pay within 1 working day of the payment being made.

Will I receive superannuation payments from my employer while receiving Parental Leave pay?

Employers will not be required to make compulsory superannuation contributions for the Parental Leave Pay they provide to you.

What if I am in a dispute with my employer about my Parental Leave Pay?

If you are in a dispute with your employer about your Parental Leave Pay, the Family Assistance Office may be able to help resolve the matter. If the Family Assistance Office cannot resolve the matter and if your employer is not meeting their obligations under the scheme, the matter will be referred to the Fair Work Ombudsman for investigation.

The Fair Work Ombudsman investigates workplace complaints and enforces compliance under the Fair Work Act 2009.

The Fair Work Ombudsman will have a role under Paid Parental Leave legislation to investigate complaints if the Family Assistance Office is unable to resolve disputes. It can also enforce employers’ obligations under the Paid Parental Leave scheme that relate to providing Parental Leave Pay to any employee for whom the employer has received a Paid Parental Leave funding amount.

The Fair Work Ombudsman’s investigations may result in civil penalty actions being taken for breaches of obligations. The civil penalties that may be imposed on an employer breaching its obligations are the same as apply under the Fair Work Act 2009.

For more information on review, appeal and dispute resolution process for Paid Parental Leave, view theReview and Appeals for the Paid Parental Leave scheme factsheet.

What if my employer already provides a paid maternity or parental leave scheme?

The Australian Government’s Paid Parental Leave scheme is a new entitlement for working parents. This means that if you are eligible you will be able to receive Parental Leave Pay regardless of whether your employer already offers paid parental or maternity leave arrangements.

You can take Parental Leave Pay before, after or at the same time as any paid or unpaid maternity or parental leave or other employer-funded leave entitlements (such as annual leave or long service leave).

If your employer currently provides an employer-funded scheme such as paid maternity or parental leave through an industrial agreement, they cannot withdraw the entitlement for the life of that agreement.

What happens if my employer ceases to trade or sells the business while paying Parental Leave Pay to me?

If your employer ceases to trade, sells the business, declares bankruptcy, transfers ownership or merges with another business, your employer will need to notify us in advance so alternative arrangements can be made for Parental Leave Pay to be provided to you.

Where do I go more information?

To find out more about the Paid Parental Leave scheme:

  • call the Family Assistance Office on 13 6150, or
  • visit the Family Assistance Office located in Medicare offices and Centrelink Customer Service Centres.

If you have questions relating to your workplace entitlements and obligations visit the Fair Work Ombudsman website or call 13 1394.

Where do I go for more information if I am an employer?

If you are an employer and would like to know more about the Paid Parental Leave scheme, view the Paid Parental Leave scheme for business section of the website.