Changes to the Paid Parental Leave Scheme

From 1 July 2023, the Federal Paid Parental Leave Scheme has changed in respect of babies born to or placed into the care of employees after this date.

Changes include:

• Partnered couples can now claim up to 100 days, or 20 weeks, of paid parental leave between them. Parents who are single at the time of their claim can access the full 20 weeks. This will replace the current entitlement of 18 weeks.
• The former Dad and Partner Pay entitlement has been removed, with the additional 2 weeks being combined with the previous 18 weeks of paid parental leave that was available under the Paid Parental Leave Scheme.
• A family income threshold has been introduced – $350,000 per year, which will be indexed annually from 1 July 2024 – for claiming paid parental leave.
• The requirement to return to work to be eligible for the parental leave entitlement has been removed, meaning that eligible parents can receive parental leave pay in multiple blocks until the child turns 2 without needing to return to work to be eligible.

There are further changes to come to the Paid Parental Leave Scheme, following the passage of the Fair Work Legislation Amendment (Protecting Worker Entitlements Bill) 2023 on 22 June 2023, so watch this space!

If you need expert legal advice on this issue, please contact our Employment Law team on 03 6338 2390 (Launceston office) or directly by email to Rebecca Crawford, Melissa Hamill or via Alice Cox.

Alternatively, contact our Hobart or Kingston Office Employment Law team on 03 6226 1200.

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