The paid parental leave scheme came into effect on 1 January 2011 and all employees who comply with the paid parental leave scheme test may claim parental pay leave.
To comply with the test an employee must:-
- Be an Australian citizen;
- Have received an individual adjusted taxable income of $150,000 or less in the previous financial year;
- Be on leave or not working from the time of the birth or adoption;
- Have worked for at least 10 of the 13 months prior to the birth (or adoption) of a child;
- Have worked for at least 350 hours in that 10 month period with no more than an 8 week gap between 2 working days.
Eligible employees who may apply for payment are:-
- The birth mother; or
- The initial primary carer of an adopted child.
An employee may still be eligible in the event of a stillbirth or infant death.
A short summary of the details of the payments are as follows:-
- Payments are government funded;
- For eligible employees (as defined above) for children born or adopted after 1 January 2011;
- The payments are transferable to the other parent;
- Payments are currently $570.00 per week before tax;
- Can be paid for up to 18 weeks;
- Must be applied for within 1 year after the birth of the child.