Recent changes to the Paid Parental Leave scheme, Paid Parental Leave Amendment (Improvement for Families and Gender Equality) Act 2023, introduces significant changes to financially support new parents in caring for infant children while being absent from work.
From 1 July 2023, the Paid Parental Leave (PPL) Scheme is changing to a more inclusive and flexible approach. The changes that come into effect in July are the first of changes to the scheme between now and 2026.
What’s Changing?
As per Fair Work, from 1 July 2023, the entitlement to PPL will increase from 18 weeks (90 days) to 20 weeks (100 days). These 20 weeks can be shared amongst the birth or adoptive parents (with the birth mother or adoptive parent’s approval) to best suit their family needs. This means partnered couples will be able to claim up to 20 weeks paid parental leave between them. Parents who are single at the time of their claim can access the full 20 weeks.
Other changes include:
- Allowing partnered employees to claim a maximum of 20 weeks pay between them, with each partner taking at least 2 weeks
- Introducing a $350,000 family income limit (indexed annually from 1 July 2024) for claiming paid parental leave pay
- Expanding the eligibility rules for fathers or partners to claim paid parental leave pay
- Making the whole payment flexible so that eligible employees can claim it in multiple blocks until the child turns 2
- Removing the requirement to return to work to be eligible for the entitlement
It is important to note that the changes only deal with financial support for employees, but the rules around when an employee can actually take parental leave have not changed.
Employers will only be responsible for passing on parental leave pay to employees who meet all of the following criteria:
- Have been working with you for at least 12 months
- Are taking at least 8 weeks of parental leave pay, in a block
- That block is within a year of their child’s birth or entry into care
- Will be your employee until at least the last day of the block of parental leave pay you’ll deliver
In order to be prepared for the changes ensure you review your current parental leave policy and payroll system are updated to be ready for July 1.
If you do not have a parental leave policy or would like to add a clause to your existing leave policy, get in touch with our HR team for more information on 5331 1734.
For more information on the changes visit:
Parental Leave Pay – Services Australia
Changes to the paid parental leave scheme – Fair Work Ombudsman
