Changes to the Paid Parental Leave Scheme
While we yap on about bookkeeping and how to keep your business compliant, we’re also here to provide sound advice—particularly around new or updated legislations.
If you have employees who are preparing for a family or planning to become parents, it’s important to be across the Paid Parental Leave (PPL) scheme, what they’re entitled to and how this affects your company.
What is the Paid Parental Leave scheme?
Introduced to Australians on 1 January 2011, the PPL provides financial support to eligible working parents to take time off work in the event of birth or adoption.
Families can receive a payment for up to 20 weeks while caring for a child born or adopted before 1 July 2023. Now, the rate receive usually changes on 1 July each year—based on the national minimum wage.
Who is eligible for Paid Parental Leave?
To receive this payment, all of the following must apply:
You must be the primary carer for a child who is born or adopted;
You must meet the income test;
You must not be working during your Paid Parental Leave period except for allowable reasons;
You must have met the work test; and
If your child is a newborn, you must have registered or applied to register your child’s birth with your state or territory’s birth registry.
What are the changes to the scheme?
Subject to the passage of legislation, the Australian Government has announced that eligible parents of babies born or adopted on or after 1 July 2025 will receive an additional 12% of their government-funded Paid Parental Leave as a contribution to their superannuation fund.
Under the Paid Parental Leave Amendment (More Support for Working Families) Act 2024, two weeks of payment will be added to PPL each year from 1 July 2024 to 2026—increasing the overall length of the scheme by six weeks from July 2026.
Additionally, the amendments will increase the number of days that a family is able to take together at the same time to four weeks—increasing the flexibility for families and support parents take time off work after birth.
If you’d like to learn more about Paid Parental Leave, read more on Services Australia or feel free to have a chat with our team by enquiring via our website.
