Access to paid maternity leave will be broadened significantly with the new Paid Parental Leave Scheme introduced in Australia, starting 1 January 2011. Read on to find out about maternity leave pay entitlements and the eligibility requirements for Paid Parental Leave.
Paid Parental Leave Scheme Entitlements in Australia
The Paid Parental Leave Scheme is government funded scheme which allows eligible working parents to claim 18 weeks paid maternity leave or paternity pay following the birth of a child on or after 1 January 2011.
Parental Leave Pay is usually paid to the birth mother or the initial primary carer of an adoptive child, unless there are exceptional circumstances. It is up to the parents to determine which parent claims the parental leave entitlements, based on who is most meeting the child’s physical needs and is therefore determined to be the primary carer. Maternity leave can always be transferred to the other parent during the 18 weeks time frame if they met the eligibility requirements.
Parental leave is paid at the National Minimum Wage, which is currently $570 per week before tax. As long as one parent is eligible for the maternity pay entitlements and meets the minimum number of working hours prior to the baby’s birth, they will still be paid the full benefit each week.
Paid Parental Leave can be taken any time within the first year following the baby’s birth, and women who are already entitled to paid maternity leave through a workplace policy can take the paid parental leave on top of the paid maternity leave from their employer; this can be paid before, after or at the same time as any government-funded parental leave.
Paid Maternity Leave or Paternity Pay Eligibility
A parent may be eligible for Paid Parental Leave under the new scheme if they:
- are the primary carer of a newborn child or recently adopted child, starting 1 January 2011
- meet the Australian residency requirements
- have earned an individual adjusted taxable income of less than $150,000in the financial year prior to becoming the child's primary carer
- have worked for at least 10 of the 13 months immediately prior to the child’s birth or adoption, and
- have worked for at least 330 hours in the above 10 month period, without a gap of more than 8 weeks at any one time between 2 consecutive working days.
Both Paid Parental Leave and the Baby Bonus cannot be paid to parents for the same child; however, for parents who do not meet the eligibility criteria for paid maternity leave under the government's Paid Parental Scheme, the Baby Bonus is still an option.
It should be noted that a parent may still be eligible for Parental Leave Pay if they give birth to a stillborn child, or in the case of infant death.
Paid Maternity Leave or Paternity Leave Employment Requirements
In order to claim Paid Parental Leave, a parent or primary caregiver must have been working prior to the child’s birth or adoption of the child. However, they must be on leave from their place of employment or not be working from the time of the child’s birth, becoming the primary carer or adopting a child.
The parent claiming Paid Parental Leave can, however, attend the workplace to participate in work-related activiies for up to 10 days from the birth of the baby to the end of the Paid Parental Leave period; these days are known as 'keeping-in-touch' days.
All parents who meet the above eligibility requirements may be able to claim paid maternity leave under the scheme no matter what type of employment they were in. As such, parents of the following employment status may be eligible for 18 weeks maternity pay under the scheme if they have met the minimum working requirements:
- full-time workers
- part-time, casual or seasonal workers
- contractors or self-employed people
- people who work in a family business
- people who have, or have had multiple employers during the period prior to the child’s birth
While the participation of women in Australia’s workforce has increased significantly over the past few decades, paid parental leave in Australia has been limited for many families. For those eligible parents, the entitlement to the government-funded 18 weeks paid maternity leave will help increase the balance between work and family life, and benefit them by allowing them to spend more time at home with the newborn child following the baby’s birth.
Sources:
Family Assistance 2009, ‘Paid Parental Leave scheme’
Christine Redmond - My interest in science and healthcare has seen me working in the laboratory with tiny cells and DNA to helping set up a cancer clinical ...
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