Starting from 1 July, 2023, changes will be implemented to the Paid Parental Leave (PPL) scheme in Australia. These changes aim to provide enhanced support and flexibility for working parents during the critical period following the birth or adoption of a child. The Fair Work Ombudsman has announced the modifications to the scheme, which will impact both employees and employers across the country. These changes affect employees whose baby is born or placed in their care on or after 1 July 2023.
What are the changes?
- The current entitlement of 18 weeks paid parental leave will be combined with the current Dad and Partner Pay entitlement of 2 weeks' pay.
- Partnered couples can claim a maximum of 20 weeks’ pay between them, with each partner taking at least 2 weeks (except in some circumstances).
- Parents who are single at the time of their claim can access the full 20 weeks.
- Introduction of a $350,000 family income limit (indexed annually from 1 July 2024) for claiming paid parental leave.
- Expanding the eligibility rules for fathers or partners to claim paid parental leave pay.
- Making the whole payment flexible so that eligible employees can claim it in multiple blocks until the child turns 2.
- Removing the requirement to return to work to be eligible for the entitlement.
These changes to the Paid Parental Leave scheme represent a significant step forward in supporting working parents in Australia. By providing increased payment duration, flexibility, and improved eligibility criteria, the revised scheme aims to alleviate financial burdens and enhance the well-being of families during this crucial time. Employers and employees alike are encouraged to familiarise themselves with the new provisions and ensure compliance with the updated regulations.
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