Employment and Migration Blog

It pays to review your PPL options

Posted by Anna Ford on 20 May 2013

Many parents will bemoan the axing of the baby bonus from 1 March 2014, as outlined in the recent Federal Budget.

 

About 28,000 families would miss out completely under the change while another 20,000 are expected to instead take Paid Parental Leave (PPL).

 

So how does PPL work?

 

Basically, the scheme provides financial support to eligible working parents when they take time off work to care for a newborn child or recently adopted children.

Under the scheme, the Government funds employers to provide PPL to their eligible employees.

 

The financial support provided by the scheme complements parents’ existing entitlements to paid and unpaid leave in connection with the birth or adoption of a child. Full-time, part-time, casual, seasonal, contract and self-employed workers may be eligible.

 

For mums, PPL is up to 18 weeks at $606.40 per week before tax.

 

From 1 January this year, PPL was extended to include ‘Dad and Partner Pay’, which is two weeks at $606.40 per week before tax. For both groups, payment is based on adjusted taxable income of $150K or less in previous financial year.

 

Dad and Partner Pay is for eligible working dads or partners (including adopting parents and same-sex couples). They must not be working during this time or must be on unpaid leave.

Employers do not play a role in providing Dad and Partner Pay – the Government pays employees directly, however, it’s still important to be aware of Dad and Partner Pay because your employee may approach you about taking unpaid leave so that they can receive Dad and Partner Pay.

 

The PPL scheme is also designed to help employers to retain valuable and skilled staff. In the long-term, PPL assists employers through increased workforce participation of parents.

The Coleman Greig Employment Law Team can help you with specialist advice about PPL - we’re here to help.