>The government introduced a government funded Paid Parental leave scheme for parents in respect of births and adoptions that occur on or after 1 January 2011.
From 1 July 2014, employees will be paid their parental leave pay directly by the Department of Human Services, unless an employer opts in to provide parental leave pay to employees and the employee agrees for their employer to pay them.
>The scheme provides 18 weeks postnatal leave paid at the federal minimum wage.
>Payments made under the scheme are taxable income.
>To be eligible for the scheme, a parent in paid work:
Ø must have worked continuously with one or more employers for at least 10 of the 13 months before the expected date of birth or adoption;
Ø must have worked at least 330 hours in those 10 months (equivalent to around one full day of work each week); and
Ø must have an adjusted taxable income of $150,000 (from 1/7/21 - $151,350) or less in the financial year prior to the date of birth or adoption of the child.
>Parents who are eligible for Paid Parental Leave will be able to continue to access employer funded leave (maternity leave and recreation leave) around the time of the birth or adoption of a child.
Parents who receive paid parental leave will not receive the Baby Bonus (except in the case of twins or multiple births), or FTB-B during the 18 week Paid Parental Leave period.
>Mothers and primary carers not in full-time paid work will continue to receive the current forms of family assistance (including the Baby Bonus), if they meet the relevant eligibility requirements.
>A taxpayer will generally not be entitled to a dependent spouse, child-housekeeper or housekeeper rebate for that part of the income year for which parental leave pay was payable to the taxpayer or their spouse.
>Parental leave pay is subject to PAYG withholding.
>Employees can salary sacrifice their parental leave pay for non-cash remuneration where that arrangement is offered by the employer.
Superannuation payments will not initially be introduced for the Paid Parental Leave. Its introduction will be considered as part of a comprehensive review of the scheme, within three years after its implementation.