Paid Parental Leave and Dad & Partner Pay

Is your ‘work family’ about to gain a new member?
Do you have an employee who is entitled to Paid Parental Leave or Dad & Partner Pay?

As an employer, do you know what your obligations are in regard to Paid Parental Leave and Dad & Partner Pay?

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.

Parental Leave Pay is paid to the child’s primary carer and eligible parents may get up to 18 weeks pay based on the rate of the National Minimum Wage. They must be on paid or unpaid leave and not working from the time they become their child’s primary carer until the end of their Paid Parental Leave period.
In most cases, employers provide Parental Leave Pay to their eligible employees. The government provides the necessary Paid Parental Leave funds to employers first.

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.

We will contact you if you are required to provide Parental Leave Pay to an employee and will provide the necessary Paid Parental Leave funds to you. We will provide Parental Leave Pay directly to an eligible parent who does not receive it from their employer.

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

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

Baby Bonus
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.
Baby bonus is no longer applicable for babies born after the 1 March 2014.

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