Paid parenting leave

Australia's Paid Parental Leave Scheme

The Federal Government announced that from 1 January 2011, all new eligible parents who are primary carers of a child born or adopted will receive a taxable paid parental leave payment at the level of the Federal Minimum Wage, currently $543.78 per week for a maximum of 18 weeks.

A parent eligible for paid parental leave will receive taxable payments at the Federal Minimum Wage, currently $543.78 a week, for a continuous period of up to 18 weeks (a total of $9788).

The Federal Government estimated that 148,000 new parents will be eligible for paid parental leave payments each year. Parents receiving paid parental leave will, on average, receive around $2000 more than under current family assistance arrangements. This net benefit takes into account the payment of tax, forgone Baby Bonus and interactions with Family Tax Benefits.

The Federal Government announced that families receiving payments under the scheme will not receive the Baby Bonus. For multiple births, the Baby Bonus may be paid for the second or additional children. Family Tax Benefit Part B will not be payable to the family during the period when paid parental leave payments are being received. The dependent spouse, child housekeeper and housekeeper tax offsets also will not be available during this period.

Paid parental leave payments will be taxable income and will affect entitlement to family assistance payments. Income from paid parental leave will not be treated as income for Parenting Payment (partnered and single), or other income support payments, such as the Disability Support Pension and Newstart Allowance.

Superannuation payments will not be made for Government Paid parental leave but this decision will be subject to a review beginning two years after the scheme has commenced.

Go to the FaHCSIA webpage for more information.

Balancing paid work and family responsibilities - Sex Discrimination Commissioner

Sex Discrimination Commissioner Elizabeth Broderick is continuing to challenge the way Australians think about work and family balance by promoting the value of family-friendly work practices. The Commissioner has said she will lead and contribute to achieving a national scheme of paid leave for parents in Australia. Find out more about the work of the Sex Discrimination Commission.

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