As of July 1 2023, a new Paid Parental Leave Scheme will be introduced which will offer eligible parents more flexibility in how they take time off work to care for a new child. The Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Bill 2022 was passed by the senate on 6 March 2023.

Under the new scheme, eligible parents will have the option to take up to 20 weeks of paid parental leave to be used between both parents. Over the next few years the amount of leave entitlements will increase, reaching 26 weeks by 2026. The new scheme will still be paid at the National Minimum Wage which is currently $21.38 per hour and will enable both parents to claim an equal amount of parental leave entitlements if they so choose. The leave can be taken either as a continuous block or as separate periods of leave over a period of up to two years. This means that parents can spread their leave out, taking it in smaller chunks as they need it, rather than all at once.

To be eligible for the new parental leave scheme, parents must have worked for at least 12 months, and have worked at least 480 hours in the 12 months prior to the birth or adoption of their child.

The new scheme will be replacing the current government-funded Paid Parental Leave scheme, which provides 18 weeks of paid leave at the national minimum wage and a two-week payment for “Dad & Partner Pay”.

Employers may need to manage their workforce to accommodate employees taking parental leave as the new scheme allows eligible parents to take their paid parental leave in smaller chunks over a two-year period, rather than in a continuous block. This means that employers will need to be prepared for employees to take leave at different times and in different patterns, which could require more flexibility in their staffing arrangements.

Example:

Phil and his wife are expecting a newborn baby in July 2023, under the new scheme, Phil and his wife have 20 weeks of Paid Parental Leave to use between them. They have decided to both take time off simultaneously to look after the baby in the initial months, therefore both parents will need to request 10 weeks of unpaid parental leave from their employers (if they are eligible).

MTA Members can get FREE access to policy templates relating to the above by contacting our Workplace Relations team, either via email: wr@mtasant.com.au or phone 8291 2000