The Paid Parental Leave Scheme provides financial support to eligible working parents of newborn or recently adopted children. Under the scheme, the federal government funds employers to provide parental leave pay to their employees.
As an employer, you must provide Parental Leave Pay to an eligible employee who:
• has a newborn or recently adopted child
• has worked for you for at least 12 months before the expected date of birth or adoption
• will be your employee until at least the end of their Paid Parental Leave period
• is Australian-based, and
• is expected to receive at least eight weeks of Parental Leave Pay.
Your business must have an Australian Business Number to participate in the scheme.
If your employee does not meet the above criteria, you are not required to provide Parental Leave Pay. However, if you both agree, you can still choose to provide it to your employee if they are eligible. You need to register for Centrelink Business Online Services and then opt-in to provide Parental Leave Pay before your employee lodges their claim for the scheme.
PPL Scheme for Employers
First Steps – Summary
• Register for Auskey
• Register for Centrelink Business Online Services
• Centrelink will send an Employer determination letter once the employee has lodged a claim
• Log on and accept online obligation to provide PPL within 14 days of receiving notice
• Keeping in touch with your employee – Refer guidelines
• Advice Centrelink if employee returns to work before the end of PPL period
• Refer to Employer and Employee Checklists at the following link http://www.fairwork.gov.au/resources/checklists/pages/default.aspx
PPL Scheme for Employees
First Steps – Summary
• talk to your employer
• claim early, online or by paper
• provide proof of birth or adoption
• Centrelink will assess your claim and let you know the outcome
• Provide written advice to your employer ten (10) weeks prior to commencing leave
• Provide written confirmation four (4) weeks prior to commencing leave
• If intending to work within six (6) weeks of due date, discuss with employer
• Keep in touch with your employer during PPL period
• Advise Centrelink if returning prior to end of PPL period
Prior to 1 March 2014, parents could make a choice between Baby Bonus payment or PPL. The Baby Bonus was a tax free payment whereas PPL is a taxable payment that is included in your payment summary and is reportable for taxation purposes.
Dad and Partner Pay
First Steps – Summary
Supports dads or partners caring for a child who is born or adopted on, or after, 1 January 2013, with up to two weeks government-funded pay. This payment is made directly by Centrelink and is not administered by your employer.
• provide care for a child who is born or adopted from 1 January 2013
• meet a work and income test
• be on unpaid leave or not working while getting the payment
• make an on-line claim within 52 weeks of the child’s birth or adoption
PPL – Centrelink payments administered by employers
Dad & Partner Pay – Administered by Centrelink
For further information and assistance in preparing for and administering Paid Parental Leave payments please contact this office at your convenience.
Janenne Poulter – Client Services Manager