The Commonwealth Paid Parental Leave Scheme gives new parents greater flexibility to make decisions about work and family responsibilities when they give birth or adopt a child.

Generally, Commonwealth Paid Parental Leave (PPL) will be for working parents of a child born or adopted from 1 January 2011.

To be eligible for PPL, a person must meet the PPL work test, income test, and residency requirements. The Family Assistance Office (FAO) will determine a person’s eligibility for PPL.

NSW public sector employees wanting to access PPL must apply to the FAO and supply the required information. Employees should lodge their claim three months prior to the expected date of birth, or date of placement for adoption of a child.

The FAO will accept claims from 1 October 2010 for children with an expected date of birth or date of placement for adoption on or after 1 January 2011.

The Scheme will provide payments at the rate of the federal minimum wage (currently $569.90 per week before tax) for up to 18 weeks.

Scheme payments are subject to tax and the Commonwealth Government does not require employers to make superannuation contributions on these payments.

The Commonwealth Government also specifies that while an employee is on PPL, they do not accrue paid leave entitlements, nor does it count as service. However, leave taken at the same time as PPL that would ordinarily count as service, for example paid annual leave, will count as service.

Eligible NSW public sector employees can access PPL in addition to their existing parental leave entitlements.

An employee may choose when to receive PPL, but must receive all PPL payments within 12 months of the date of birth or date of placement for the adoption of a child.

The NSW Department of Premier and Cabinet is actively working with NSW public sector agencies and Unions NSW to implement PPL in the NSW public sector.

If you have any enquiries about the Commonwealth Paid Parental Leave Scheme, including employee eligibility and employer responsibilities, I encourage you to visit the FAO website http://www.familyassist.gov.au/news-and-updates/paid-parental-leave-scheme.html

Brendan O’Reilly
Director General