Before Your Child Arrives
If you think you are eligible for Parental Leave Pay there are a number of things you should do before your child arrives.
- Plan your caring role and work leave arangements. Consider what paid and unpaid leave you might take from work, when you would like your Parental Leave Pay to start, and when you might want to return to work.
- Use the Paid Parental Leave Comparison Estimator. 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.
- 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.
- Talk to your employer. Organise your leave from work. You should try to do this at least 10 weeks before you intend to take leave. If you have worked for 12 months or more for the same employer you are entitled to up to 12 months unpaid parental leave. For more information on your employment entitlements visit www.fairwork.gov.au
How Will I Receive My Paid Parental Leave Payments?
Parental Leave Pay will be provided to you by either your employer in your usual pay cycle or by the Family Assistance Office in fortnightly payments.
From 1 January 2011, you and your employer can agree that your employer will provide your Parental Leave Pay. Your employer will be funded by the Australian Government to do this if you are eligible. If either you or your employer do not agree, you will receive your Parental Leave Pay from the Family Assistance Office.
From 1 July 2011, your employer must provide your Parental Leave Pay if you have worked with them for at least 12 months prior to the expected date of birth or adoption of your child and you will be receiving at least eight weeks of Parental Leave Pay. If you do not meet these conditions, you and your employer can still agree that your employer will provide your Parental Leave Pay after 1 July 2011, provided you are eligible.
How much will I be paid?
Eligible working parents will receive Parental Leave Pay at $570 a week for a maximum period of 18 weeks. This pay is taxable.
If your employer is providing your Parental Leave Pay:
- You will be able to access other paid leave such as maternity leave, however this may mean you will be taxed at a higher rate.
- They can deduct Child Support from your Parental Leave Pay if they are required to do so.
- You may arrange for other deductions to be made from your Parental Leave Pay.
- You may salary sacrifice some or all of your Parental Leave Pay. For example, you may make voluntary contributions to superannuation. You must agree these arrangements with your employer as you do with wages.
- Your employer will not be required to make superannuation contributions on your Parental Leave Pay.
If we provide your Parental Leave Pay:
- We will withhold PAYG at the rate of 15 per cent unless you request another rate.
- You will not be able to salary sacrifice Parental Leave Pay that is provided directly by us.
- You can voluntarily request a Family Assistance and/or Centrelink debt to be deducted.
What else do I need to know about Paid Parental Parental Leave Pay?
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.
If you have a multiple birth (for example, twins or triplets), you can receive Parental Leave Pay for the first child and, if you are eligible, the Baby Bonus for a second or additional child in a multiple birth.
Parental Leave Pay will count as taxable income for Family Tax Benefit and child support purposes in the financial year in which the Parental Leave Pay is received. Use the Paid Parental Leave Comparison Estimator to find out how Parental Leave Pay may affect your existing family assistance payments and/or child support assessment/s.
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.
When can I claim Parental Leave Pay?
Lodge your claim before your child arrives
If you think you are eligible for Parental Leave Pay you should lodge your claim before the birth or adoption of your child. Lodging a claim for Parental Leave Pay before your child is born or adopted will help prevent any delay in providing Parental Leave Pay.
You can lodge a claim up to three months before the expected date of birth or adoption of your child.
The birth mother or the initial primary carer of an adoped child must claim for Parental Leave Pay, unless there are exceptional circumstances, for example where the mother is unable to care for the child.
You can tell the Family Assistance Office the date you would like your Parental Leave Pay to start when you lodge you claim.
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 receive the full 18 weeks of Parental Leave Pay, your nominated start date for Parental Leave Pay needs to be within 34 weeks of the birth or adoption of your child.
After 34 weeks following birth or adoption, the number of weeks you will be eligible to receive Parental Leave Pay will reduce. The table below explains how this will occur after the birth of your child.
| Claim before the end of | Receive Parental Leave Pay for the period of |
|---|---|
| 35 weeks * | 17 weeks |
| 36 weeks * | 16 weeks |
| 37 weeks * | 15 weeks |
| 38 weeks * | 14 weeks |
| 39 weeks * | 13 weeks |
| 40 weeks * | 12 weeks |
| 41 weeks * | 11 weeks |
| 42 weeks * | 10 weeks |
| 43 weeks * | 9 weeks |
| 44 weeks * | 8 weeks |
| 45 weeks * | 7 weeks |
| 46 weeks * | 6 weeks |
| 47 weeks * | 5 weeks |
| 48 weeks * | 4 weeks |
| 49 weeks * | 3 weeks |
| 50 weeks * | 2 weeks |
| 51 weeks * | 1 week |
How do I claim Parental Leave Pay?
Refer to the guide how to claim Parental Leave Pay.
You can make a claim for Parental Leave Pay or the Baby Bonus using Online Services. You will need toregister for Online Services. If you have already registered, log on.
If you would like to find out more about registering for Online Services you can:
- view a demonstration of how to register for Online Service, or
- view the online and phone services frequently asked question.
You can call 13 6150 for assistance in completing your online claim 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 should I do after my child arrives?
If you lodged your claim early and your circumstances or your caring plans have changed, you should check the Paid Parental Leave Comparison Estimator to make sure you are still better off receiving Parental Leave Pay rather than Baby Bonus.
You can change to the Baby Bonus up until the start date of your Paid Parental Leave period.
A Proof of Birth form will be given to you at the hospital or by the midwife. You should lodge this with the Family Assistance Office as soon as possible, as your Parental Leave Pay cannot start until you have lodged claim and Proof of Birth form.
After the birth of your child, you will need to register the birth with the Births, Deaths and Marriages Registry in your state or territory.