The Paid Parental Scheme
- is government funded
- is for eligible working parents
- can be transferred to the other parent (male or female)
- is paid at the National Minimum Wage - currently $570 a week before tax*
- is for up to 18 weeks, and
- can be taken any time within the first year after birth or adoption.
To make sure your business is ready to provide Parental Leave Pay to any eligible employees, you must register for the Paid Parental leave scheme through Centrelink Online Business Services by
30 June 2011.
Register at: www.centrelink.gov.au/business
Following the birth or adoption of a child, you may need to decide whether to claim Parental Leave Pay or Baby Bonus.
Parental Leave Pay and Baby Bonus
cannot be paid for the same child.
From 1 July 2011, your employer is responsible for providing your Parental Leave Pay if:
- your child is born on or after 1 July 2011
- you have worked for your employer for at least 12 months prior to the expected date of birth or adoption of your child, and
- you are receiving at least eight weeks of Parental Leave Pay for babies born between 1st January 2011 and 30 June 2011, then you can elect to have your payments made to you fortnightly by the Family Assistance Office
Working parents (male or female), including full-time, part-time, self-employed, casual, contract and self-employed workers may be eligible for Parental Leave Pay if they meet the scheme's eligibility criteria.
You can receive up to 18 weeks of Parental Leave Pay at the National Minimum Wage, currently $570.00 per week before tax. Parental Leave Pay is taxable and can start from the day your child is born or adopted, or at 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 the birth or adoption, the number of weeks you will be eligible to receive Parental Leave Pay will reduce.
Example:
- Claim before the end of 35 weeks you will receive Parental Leave Pay for 17 weeks
- 36 weeks = 16 weeks
- 37 weeks = 15 weeks and so on
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If you meet the eligibility criteria for both Parental Leave Pay and Baby Bonus, you will need to decide which payment you want to claim.
The Centrelink website has a
Paid Parental Leave Comparison Estimator which will help you choose which payment is the best financial decision for your family. The estimator asks you a series of questions about your circumstances and will provide you with a comparison between Parental Leave Pay and Baby Bonus.
The Parents can lodge a claim up to 3 months prior to the birth or adoption for Parental Leave Pay, Baby Bonus and other family assistance payments. But to do so, you must register for Online Services.
For all Employers and Employees, please visit the below websites for further information and assistance
Important sites:
