Paid parental leave

From 1 July 2011, you will be responsible for providing Government funded parental leave pay to eligible employees who have worked for you for 12 months or more if they give birth to, or adopt a child, from this date.
Who can claim?
Workers who are the primary carer may make a claim. The primary carer will usually be the mother. To be eligible for the payments, the primary carer:

• must have worked continuously for at least 10 of the 13 months prior to the expected birth or adoption, with a break of no greater than eight weeks between any two consecutive work days; and
• must have worked at least 330 hours during the 10 month period; and
• must be an Australian-based employee with an Australian employer.

Part time, casual and self-employed persons will be eligible, but workers earning more than $150,000 will not be eligible.

How much are the payments?
The primary carer of a child will be entitled to up 18 weeks at the national minimum wage provided they can satisfy the work, income and residency tests. If an employee takes the paid parental leave, they will not be entitled to the baby bonus.

When can employees take their leave?
Leave must be in one continuous period and cease within 12 months of birth or adoption.

A family can only receive one 18 week period of paid parental leave per birth or adoption. 

Who assess eligibility?
Individual employees will be required to apply directly to the Family Assistance Office who will initially assess an employee’s eligibility.

Who pays the employee?
Although the scheme is Government funded, in most situations businesses will need to distribute the money directly to their employees. Centrelink will contact you if you're required to provide Parental Leave Pay to an employee. You will then be required to register for the scheme and will need to provide bank details and pay cycle information to the Government.

Once you have registered, you will receive the money from the Family Assistance Office and then pass the benefit onto their employee during their normal pay cycles (weekly, fortnightly etc). You will in effect be the “pay masters” and will only be required to pay the employee when you have received the money from the Government.

You can register for the Paid Parental Leave scheme online through Centrelink’s website: www.centrelink.gov.au. You will need your business’ ABN, registration details, and contact details to register online.

What other obligations will businesses have?
You must:

• deduct pay as you go tax (PAYG) from the benefit and issue pay slips to employees as usual;
• tell the FAO when the employee returns to worker, or if they resign during the leave period;
• return unpaid benefits to the Family Assistance Office.

You will not have to make superannuation contributions in respect of the parental leave pay.

Paid parental leave will not:

• result in the accrual of any additional leave entitlements;
• give rise to any additional workers compensation premium liabilities.

Our company currently provides paid parental leave? What does this mean?
If paid maternity is currently a condition of your employee’s contracts then the government scheme will need to be paid in addition to existing obligations.
If you currently provide paid maternity or parental leave through an industrial agreement, you cannot withdraw the entitlement for the life of that agreement.
Where can I get more information?

More information on the scheme can be found on the Family Assistance Office website: http://www.familyassist.gov.au/.

Otherwise, you can contact an HIA workplace adviser on 1300 650 620.

_{DISCLAIMER – the above is intended to provide general information in summary form. The contents do not constitute specific advice and should not be relied upon as such. Formal specific advice should be sought by members with respect to particular matters before taking action.}