Paid Parental Leave Scheme

11/24/2009 By admin

New information for both employers and employees about the Paid Parental Leave Scheme has been released by the Federal Government.

As part of the 2009/10 Federal Budget, the Australian Government is introducing the Paid Parental Leave (PPL) Scheme. The scheme will be made available for parents who are primary carers of children that have been born or adopted on or after 1 January 2011.

An eligible person will receive taxable PPL payments at the level of the Federal Minimum Wage, currently $543.78 a week, for a maximum period of 18 weeks. In most cases, the person will receive the payment through their employer.

An income test of $150,000 will apply based on the primary carer’s adjusted taxable income in the previous financial year.

PPL will cover employees, including casual workers, as well as contractors and the self-employed. If a primary carer returns to work before they have received all of their PPL entitlement, they may be able to transfer the unused part of their PPL to another caregiver (usually the father) who meets eligibility requirements.

Eligible families can choose whether to participate in the scheme depending on their individual circumstances. Families electing to participate in the scheme will not receive the Baby Bonus (except in multiple birth cases) or Family Tax Benefit Part B during the 18 week PPL period. The dependent spouse, child housekeeper and housekeeper tax offsets also will not be available during this period.

New mothers who are not eligible for PPL will continue to receive, if eligible, the current forms of family assistance (including the Baby Bonus).

To be eligible for the PPL Scheme, the primary carer must: