On 1 July 2023, a number of changes made to the paid parental leave scheme came into effect.

In announcing the amendments, the Minister for Social Services Amanda Rishworth said the updated scheme would make the payments more accessible, more flexible and gender neutral.

The changes to the scheme are quite significant and will require employers to update their policies to ensure they comply.

The parental leave scheme changes

There have been 6 key changes made to the paid parental leave scheme.

As of 1 July 2023:

• – Partnered couples will be eligible to share up to 20 weeks of parental leave between them. Each partner must take at least 2 weeks’ leave (except in exceptional circumstances).
  • – The dad and partner pay (previously a 2-week leave entitlement) has been removed and combined into a parental leave payment that can be shared between both parents.
• – The eligibility rules for fathers or partners to claim paid parental leave pay have been expanded.
• – Parents who are single at the time of claiming can access the full 20-week payment.
• – Eligible employees can claim the payment in multiple blocks until the child turns 2.
• – A family income limit of $350,000 for claiming Parental Leave Pay has been introduced, under which families can be assessed if they do not meet the individual income test. This will be indexed annually from 1 July 2024.
• – The requirement to return to work to be eligible for the payment has been removed.

 

What the changes mean for employers

These changes require employers to update their existing parental leave policies to ensure they meet the required entitlements under the National Employment Standards.

For those businesses that offer additional parental leave on top of the government-paid parental leave entitlements, it is recommended that you review your scheme and consider if you wish to make updates in line with the government’s scheme in terms of flexibility and gender neutrality.

Next steps

With these changes effective since 1 July 2023, it’s important to review and update your company’s policies as soon as possible.

If you need some assistance with this please reach out to Nikki Jenkinson, Director and Lead HR Consultant – 0472 545 584 or submit an enquiry via our Contact page.