Key Changes to Paid Parental Leave

As part of the 2022 Federal Budget, the Federal Government has announced major changes to the government-supported paid parental leave (PPL) scheme, aimed at expanding eligibility and access to PPL.

The key changes are:

• Combining the 18 week PPL payment with the 2 week ‘Dad and Partner Pay’, to total 20 weeks of PPL. Parents will be able to split the leave between them in whatever way they like, effectively removing the distinction between the ‘primary carer’ and the ‘secondary carer’.

• Single parents will be able to access the full 20 weeks of PPL, rather than only 18 weeks PPL.

• The PPL income test will be adjusted to include a household threshold test of $350,000 per year. Under the current system, if the primary carer earns more than $151,350 then they are not entitled to receive PPL, even if their partner earns a lower income or no income.

The budget says the changes to the PPL scheme “will assist to promote equality between mothers and fathers and empower families to make their own decisions without being restricted by policy settings defined by 'primary' or 'secondary' carers".

The intention is to introduces the changes in March 2023, following consultation with stakeholders.

Our team will keep you updated on future developments on these changes as they occur.