Paid Parental Leave scheme

Australia's first national Paid Parental Leave scheme starts on 1 January 2011. Taking time away from work for a new baby is a common part of working life. The scheme will help parents spend more time at home with a new baby, and help employers keep skilled and valuable staff.

The Paid Parental Leave scheme:

• is government funded

• is for eligible working parents of children born or adopted on or after 1 January 2011

• can be transferred to the other parent

• is paid at the National Minimum Wage - currently $570 a week before tax*

• is for up to 18 weeks

• can be taken any time within the first year after birth.

Am I eligible?

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 scheme work test before the birth or adoption occurs,

• have received an individual adjusted taxable income of $150,000 or less in the previous financial year, and

• are on leave or not working from the time you become the child’s primary carer.

The birth mother or the initial primary carer of an adopted child must make the claim for Parental Leave Pay, unless there are exceptional circumstances.

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 adopted 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 are 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

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, and

• worked for at least 330 hours in that 10 month period (just over one day a week), with no more than an eight week gap between two consecutive working days.

A working day is a day you have worked for at least one hour.

There are some exceptions to the work test if you cannot meet it due to pregnancy complications and/or premature birth.

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 such as a farm

• have multiple employers, or

• have recently changed jobs.

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, providing you are undertaking the work for financial gain or benefit.

Can I work while receiving Parental Leave Pay?

If you return to work, your Parental Leave Pay will stop. If you decide to return to work before the end of your 18 week Paid Parental Leave period you will need to notify us.

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.

You can ‘keep in touch’ with your workplace.  This means you can participate in activities at the workplace for up to 10 days from the birth or adoption of your child until the end of your Paid Parental Leave period without losing your entitlement.  For example, your employer may have scheduled a short training course that you want to attend. This must be a voluntary agreement between you and your employer. Your employer cannot make this a compulsory requirement for you.

The days you are allowed to attend work for the purposes of ‘keeping in touch’ can not be within the first two weeks after the birth of your child.

These days do not need to be used all at once and you must be paid your usual wages or salary in addition to your Parental Leave Pay for the time you attend work.

If you are self-employed, you will be able to keep an eye on your business without being regarded as having returned to work. You will be able to oversee the business’ operations and perform the occasional administrative task, such as organising a repair or paying an account.

Will the Paid Parental Leave scheme affect existing leave entitlements offered by my employer?

The Paid Parental Leave scheme provides you with Parental Leave Pay but does not give you an entitlement to leave.  The scheme does not change any of your existing leave entitlements.

If you are eligible for the Paid Parental Leave scheme, you will be able to access up to 18 weeks of government-funded Parental Leave Pay, as well as any of your existing employer-provided paid or unpaid leave. You can take your Parental Leave Pay before, during or after any paid maternity or parental leave, or other employer-funded leave entitlements (such as annual leave or long service leave).

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

Under the National Employment Standards in the Fair Work Act 2009, if you have been employed by your employer for 12 months or more prior to the birth or adoption, you may be entitled to access up to 12 months unpaid parental leave associated with the birth or adoption of your child.  You can also request an additional 12 months unpaid leave on top of this.

If you are unsure what your leave entitlements are, visit www.fairwork.gov.au or call 13 1394.

What is the Paid Parental Leave Comparison Estimator?

If you think you may be eligible for Parental Leave Pay, you can use the Paid Parental Leave Comparison Estimator to help you decide if you want to receive Parental Leave Pay or the Baby Bonus. The Paid Parental Leave Comparison Estimator will ask you to answer questions about your circumstances and will provide you with a comparison between Parental Leave Pay and the Baby Bonus.

Where do I go for more information?

To find out more about the Paid Parental Leave scheme:

• view the Paid Parental Leave scheme questions and answers for working parents

• view the Paid Parental Leave scheme publications for working parents (including alternative formats and languages)

• call the Family Assistance Office on 13 6150

• visit the Family Assistance Office located in Medicare offices or Centrelink Customer Service Centres.