There are a number of changes to the Paid Parental Leave scheme that will come into effect for parents whose children are born or adopted from 1 July 2023.

These changes include combining the existing 18 weeks of parental leave pay and 2 weeks of parental and partner pay into a single 20-week entitlement that can be shared between each parent.

Parents will have the option to receive a maximum of 18 weeks’ parental leave pay each, or a maximum of 20 weeks’ parental leave pay if they choose to share the leave between them.

Parents will be able to take their parental leave pay in up to four separate blocks of at least two weeks each, over a two-year period.

The eligibility means test will be modified by adding a new $350,000 per annum family income test, which allows claimants who do not meet the individual income test to qualify for parental leave pay. Furthermore, the introduction of the new family income test and the expanded eligibility for fathers and partners will make the scheme more equitable and inclusive for all eligible parents.

Single employees who apply for parental leave pay will be eligible for the entire 20 weeks of pay.

These changes are set to make the Paid Parental Leave scheme more inclusive and equitable for all parents, regardless of their gender or role in caring for their children. It is hoped that these reforms will better support parents in balancing their work and family commitments while providing necessary care for their children.

You can read the bill in full here: https://www.legislation.gov.au/Details/C2022B00141