As part of its Budget for 2022-23, the Australian Government has announced that $346.1 million will be spent over 5 years to implement a new paid parental leave scheme that will provide families with more freedom and choice.
Prior to this announcement, only the primary carer was eligible to take 18 weeks with the secondary carer limited to two weeks of leave. The Federal Government will look to merge the two-week Dad and Partner Pay scheme with the 18 weeks of Paid Parental Leave (PPL) scheme to create a new 20-week scheme, paid at the national minimum wage.
The Government has also announced that single parents will receive an extra 2 weeks of Government-funded paid parental leave as part of this new scheme.
The new scheme will have broadened eligibility, allowing households earning up to $350,000 a year to qualify. These changes in eligibility are expected to benefit an additional 2,200 families per year, on top of the roughly 260,000 parents who access paid parental leave annually under the current scheme.
It is proposed that the new paid parental leave scheme will come into effect from 1 March 2023.
WITH YOU ALL THE WAY
Client Manager ‑ Employee Benefits