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Changes to Paid Parental Leave
On 1 July 2023 the Federal Government is introducing changes to the current Paid Parental Leave system in a bid to make it more flexible and promote gender equality. In this article we’ll go over how the system currently works and what the changes will be.
Current System
Currently parents/carers of newborn or adopted children are able to claim up to 18 weeks (90 payable days) of Parental Leave Pay paid at the National Minimum wage. This is made up of 12 continuous weeks (60 payable days) as well as 30 Flexible Paid Parental Leave Days. 2 weeks (10 payable days) of Dad and Partner Pay is also available but the total payment for Parental Leave cannot exceed the 18 weeks (including the Dad and Partner Pay component).
In order to be eligible for Parental Leave Pay currently you need to be the primary carer for the child, not be working for the period of Paid Parental Leave and meet income and work tests.
System from 1/7/23
From 1 July 2023 the payment will increase to 20 weeks (100 payable days) which is now able to be shared by both parents or carers. There are rules about the amount that can be shared however and the birth mother (or first adoptive parent) must approve any shared days and no one parent can claim more than 90 days unless they are a single parent or carer.
For more information on Paid Parental Leave please visit Services Australia’s website here or if you need further assistance please give us a call on 1300 108 488.