Paid Parental Leave Changes

From 1 July 2023, Parental Leave Pay and Dad and Partner Pay are combining into one 20 week payment. The length of the Parental Leave Pay scheme is set to increase to 26 weeks by 2026, with the payment increasing by 2 weeks each year starting from 1 July 2024 until 1 July 2026 when it will reach 26 weeks.

The other changes include:

· A combined family income limit of $350,000 per financial year will be used to determine eligible applicants (including single parents). Currently there is an individual income limit of $156,647;

· Either parent will be able to claim, so couple parents will be able to choose how they use the Parental Leave Pay;

· Increased flexibility for parents to choose how they take their leave. Parents are able to take weeks of Parental Leave Pay at the same time

Parental Leave Pay will be able to be taken in blocks as small as one day at a time, with periods of work in between. The changes will also allow fathers and partners to receive payments under the scheme at the same time as they receive employer-funded leave.

Parents will be able to access Parental Leave Pay until the child turns two years old. Any unused portion of Parental Leave Pay will be forfeited if not used before this time.

Parents can take Parental Leave Pay at the same time as the other parent and between period for paid work.

Next steps

Given such changes, employers should review current employment contracts and policies to ensure that such contain provision for such updates to parental leave.

If you require assistance in reviewing your employment contracts or policies please contact Hart & Co today.