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Paid Parental Leave amendments pass

Article published on: 07-03-2023

The Bill amending the Paid Parental Leave scheme has passed. The changes are effective from 1 July 2023 and apply where the child’s birth or entry into care is on or after 1 July 2023.

Parental Leave Pay (PLP) is a payment for parents and carers of a newborn or adopted child and is equal to the national minimum wage, currently $812.45 per week gross. It must be taken before the child turns two.

PLP changes

From 1 July 2023, the PLP and Dad and Partner Pay are combining into one payment. Currently, PLP is up to 18 weeks and Dad and Partner pay is up to two weeks. The new PLP will be 20 weeks (100 days) in the 2023/24 financial year and will extend by a further two weeks each year until it reaches 26 weeks (130 days) from the 2026/27 financial year.

• share the 20 weeks (100 days) of payments, however, two weeks (10 days) must be used by each parent
• if single, access the full allotment of 20 weeks
• take days off at the same time compared to the current scenario where only the primary carer can receive payments
• receive payments when on paid leave from an employer, and
• take PLP in multiple blocks, including individual days (currently must take 12 weeks immediately after birth or adoption and then another six weeks at the preference of the primary carer within two years of birth).

Income test

A combined family income limit of $350,000 (adjusted taxable income) per year (to be indexed annually) will be introduced from 1 July 2023. The existing individual limit of $156,647 will remain. If a parent does not meet the individual income limit, they may still be eligible under the combined family income limit. The family income limit applies to both partnered and single parents. Individuals must continue to satisfy a work test.

Applying for PLP

Parents will be able to apply for PLP up to 100 days prior to the day the claim is made (expected birth or adoption date). The current application limit is 42 days.