More flexibility for families with paid parental leave changes
Changes to Services Australia’s Paid Parental Leave Scheme aim to give families more flexibility to manage work and care arrangements.
The changes take effect from 1 July 2023 and apply to people whose child’s birth or adoption was after this date.
Employers may need to review and update their paid parental leave policies.
Parental leave and dad and partner pay are being combined into one payment of a maximum 100 days, or 20 weeks based on a five-day work week – to be shared between parents.
Currently paid parental leave offers the birth mother 90 days or 18 weeks and the father or partner two weeks.
A combined family income is being introduced – so for those who do not meet the individual income limit of $156,647, a combined family income limit of $350,000 will apply instead. This also applies to people who are single or partnered. Parental leave pay is paid at the national minimum wage.
Parents can access parental leave pay until their child turns two years old. Parents can share their leave with each other and take days at the same time. The birth mother or first adoptive parents must give approval to share any parental leave pay days.
Unused parental leave pay days will be lost before the child turns two, with the aim to encourage both parents to access the payment. Single parents will have access to the full amount of leave pay.
There are more proposed changes subject to legislation passing, such as increasing the total parental pay leave available to families to 26 weeks by 2026.