Becoming a parent is one of the most significant milestones in life. But with this new role comes a great deal of responsibility, and for many families, that means taking time off from work to care for a newborn child. Paid parental leave (PPL) is an essential benefit that helps support families during this transition period. In this Legal Kitz blog, we’ll take a closer look at how PPL works in Australia, including eligibility requirements, the application process, and other important details.
What is paid parental leave in Australia?
PPL is a government-funded program that provides financial support to eligible working parents who take time off from work to care for their newborn or newly adopted child. It is designed to help ease the financial burden associated with taking time off work to care for a child, while allowing parents to focus on caring for their child without worrying about income loss.
How much paid parental leave can you receive in Australia?
In Australia, eligible parents can receive up to 18 weeks of PPL. The maximum amount of PPL payable is based on the national minimum wage, which is currently $753.80 per week (as of 1 July 2021). This scheme as of this date also includes;
- a continuous paid parental leave period of up to 12 weeks (60 payable days)
- a flexible 4-week paid parental leave period (30 payable days),
where parents can choose to use their flexible period within 24 months as negotiated between the parent and employer.
Who is eligible for paid parental leave in Australia?
To be eligible for PPL in Australia, you must meet the following criteria;
- You must be the primary carer of a newborn or newly adopted child.
- You must have worked for at least 10 of the 13 months before the birth or adoption of the child, and for at least 330 hours during that time.
- You must be on leave or not working during the period for which you are claiming PPL.
- You must be an Australian resident and meet certain residency requirements.
It’s important to note that PPL is only available to working parents who do not have access to an employer-funded paid parental leave scheme. If your employer offers paid parental leave, you may still be eligible for PPL, but you will need to deduct any employer-funded payments from your PPL entitlement. Visit Services Australia – Parental Leave Pay for more information on eligibility.
How to apply for paid parental leave in Australia?
The application process for PPL is relatively straightforward. You can apply online through the Services Australia website, or you can download and print a paper application form.
Step 1: Talk to your employer at least 10 weeks before your child’s date of birth or adoption. Negotiate your leave and let them know you want to claim parental leave pay. Employers are required to register with Services Australia and read the Parental Leave Pay information for employers.
Step 2: Claim. You can either claim online or call Services Australia via their Families Line or visit a service center. To claim online, you need a myGov account linked to Centrelink, where you will need to prove your identity before starting your claim.
Step 3: Getting your documents ready. You will need your respective supportive documents ready to answer some questions relating to your claim.
Step 4: Submit your Claim. Once you sign into myGov and head to Centerlink. Select Payment and claim from the menu, select Claims and Make a Claim. Answer all the questions and upload your supporting documents to submit your claim.
Step 5: Track your Claim. You can track your progress online when you sign into myGov, and will be notified of the result of your application via a message to your myGov Inbox. If your application is approved, your payments will be made directly into your bank account. You can also request to review decisions if unsuccessful.
Impact of paid parental leave
The introduction of paid parental leave in Australia has had a significant impact on the workforce and the broader community. It has increased workforce participation among women and improved gender equality by allowing both parents to take time off work to care for their child. Paid parental leave has also been shown to reduce employee turnover and increase job satisfaction, as parents are more likely to return to work after taking leave if they feel supported and valued by their employer.
Despite the benefits of paid parental leave, there are still some challenges to be addressed. Some parents may not be eligible for the scheme, and the entitlements may not be sufficient to cover the cost of living in some areas. Additionally, some employers may not offer additional parental leave benefits, making it difficult for parents to take time off work to care for their child.
Legal advice
If you are facing any challenges or have any doubts regarding paid parental leave, you can always contact Legal Kitz to assist you. To arrange a FREE 30 minute consultation with one of our highly experienced solicitors contact us at [email protected] or 1300 988 954. Additionally, you can also check out our sister company – Business Kitz’s Subscriptions to access our full range of legal, commercial and employment document templates to begin your business with a solid foundation that ensures compliance.