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Paid Parental Leave amendments passed

Article published on: 18-03-2024

The Bill amending the Paid Parental Leave (PPL) scheme has passed both Houses and awaits Royal Assent. The changes implement the second tranche of changes to the PPL scheme, including the increase in maximum leave to 26 weeks from 1 July 2026.

In addition, the ‘reserved period’ for couple applicants increases one week each year from 1 July 2025 until reaching four weeks from 1 July 2026. The ‘reserved period’ is the minimum reserved for each parent of a couple. One member of a couple cannot take the full PPL period, as the four weeks reserved for each parent is on a ‘use it or lose it’ basis. This is to encourage greater sharing of care responsibilities. Both parents can take their leave concurrently for up to four weeks from 1 July 2025.

Summary of changes

From PPL (weeks) Reserved period (weeks)
Current 20 2
1 July 2024 22 2
1 July 2025 24 3
1 July 2026 26 4


Advice tips

  • You can help educate your clients about PPL. Details about the scheme can be found on Services Australia.
  • The Government also proposes to pay super guarantee on PPL from 1 July 2025, however, this measure is not yet law. 

 

This communication is prepared by Actuate Alliance Services Pty (ABN 40 083 233 925, AFSL 240959), a related entity of MLC Wealth Limited (ABN 97 071 514 264). This is for financial adviser use only – it is not to be distributed to clients. The communication has been prepared to provide financial advisers with technical resources, support and knowledge. The information in this document is current as at the date of publication and reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue, and may subject to change. In some cases, the information has been provided to us by third parties. Whilst care has been taken in preparing this document, no liability is accepted for any errors or omissions in this document, and loss or liability arising from any reliance on this document. Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we therefore recommend your client consult with a registered tax agent.
 

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