You may be curious about your eligibility for Parental Leave Pay and how much you get paid if you are expecting a child or intend to adopt a child in Australia. In this blog post, we’ll go through the fundamentals of both the employer-funded Paid Parental Leave and the Australian government-funded Parental Leave Pay schemes, which may differ based on your employment agreement, contract, or policy.
Australian Government Parental Leave Pay scheme.
The Parental Leave Pay scheme offers financial assistance for eligible main carers of newly adopted or born children. The scheme seeks to support parents who need to take time from work to care for their children while preserving their working relationship.
Eligibility
To be eligible for the Parental Leave Pay scheme, you must have:
- Worked at least 10 of the 13 months before the birth, adoption, or date of claim.
- Worked at least 330 hours in that 10-month period.
- Have an adjusted taxable income of $168,865 or less in the financial year prior to the date of birth, adoption, or date of claim. If this fails, they can still satisfy the income test where their and their partners adjusted taxable income is $350,000 or less, and
- Be an Australian resident.
The person who can claim the Parental Leave Pay must be a person who is the:
- Birth mother or partner of the birth mother
- Biological father or partner of biological parent
- Adoptive parents and partner of an adoptive partner
- Gaining parent in a surrogacy arrangement and partner of a gaining parent
- A person caring for the child under exceptional circumstances.
It can also be taken in conjunction with, or in addition to, employer-provided leave, but not while working.
Payment
Parents who qualify may get up to 20 weeks of parental leave pay starting on July 1, 2023 (currently $882.80 per week before taxes). Within two years after the birth or adoption of your child, you can decide whether to receive your payment in a single continuous block or over several flexible time periods.
Up to three months prior to the anticipated birth or adoption date of your child, you may submit an application for parental leave pay. You have two options for submitting your claim: online through myGov or on paper. The government agency Services Australia oversees the Parental Leave Pay scheme. It will evaluate your claim and either pay you directly or via your employer.
Parental Leave Pay can be combined with any employer-funded parental leave benefits, but it cannot be received simultaneously with any other Services Australia income assistance benefits, such as the Family Tax Benefit or the Carer Allowance.
Employer-funded Paid Parental Leave
In addition to the parental leave pay programme, many companies offer paid parental leave to their staff. Your company agreement, contract, or policy will determine the length of leave, pay entitlements, and guidelines for taking Paid Parental Leave.
Your eligibility for the Parental Leave Pay programme is unaffected by employer-funded Paid Parental Leave. Both payments are available, but not simultaneously. If you have worked for your employer for at least a year, you are also entitled to up to 12 months of unpaid parental leave.
You should review your employment contract, speak with your employer, or get in touch with the Fair Work Ombudsman to learn more about your employer-funded Paid Parental Leave.
Parental Leave Pay is a useful perk that might assist you in managing your job and family obligations. Planning ahead and submitting your application as soon as you can will ensure that you receive your payment on time, whether you are qualified for the Parental Leave Pay scheme, employer-funded Parental Leave Pay, or both. You can go to the following websites for more details and assistance:
- Services Australia – Parental Leave Pay
- Fair Work Ombudsman – Paid Parental Leave
If you have any questions or need further assistance, please contact us today. You can also browse our other blog posts for topics that may be of interest to you.
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