Paid Parental Leave Q&A

Parental leave is leave an employee can take when they give birth, an employee’s spouse or de-facto partner gives birth, or if an employee adopts a child under the age of 16. The employee must have worked for their employer for at least 12 months prior and be the person primarily taking care of the child. Employees are entitled to 12 months unpaid leave, though some employers offer paid parental leave.

The Australian Government also offers paid parental leave to eligible employees as part of the Australian Government Paid Parental Leave Scheme.

Is Paid Parental Leave Income?

Parental Leave Pay is part of an employee’s taxable income.

How Much Is the Centrelink Paid Parental Leave?

The Centrelink Parental Leave Pay Rate is the same as the national minimum weekly wage and is currently (from 01 July 2020) $753.80 per week.

How Long Is Paid Parental Leave Pay from Centrelink For?

Employees can get Parental Leave Pay for a maximum of 18 weeks, but the start date cannot be more than 34 weeks after the child’s birth or adoption.

Can you Claim Paid or Unpaid Maternity Leave from Work and Centrelink Paid Parental Leave?

Yes, employees can take Parental Leave Pay before, after or at the same time as they’re getting paid or unpaid leave from their employer.

Can You Claim Paid Parental Leave If You Are Self-Employed?

Yes, Self-employed parents can meet the work test provided you are working to earn money and be better off financially, even if the business is not making a profit.

Who Pays For Paid Parental Leave In Australia?

The Australian Government. Parental Leave Pay is administered through Services Australia (Centrelink) who may deposit funds in the employers account for the employer to pay the employee as part of their normal pay cycle.

What Is The Threshold For Paid Parental Leave?

In order to currently meet the income test to get Parental Leave Pay, an employee must have an annual income of less than $150,000 before tax. The employee would need to provide information regarding their financial circumstances to Centrelink who will decide whether they meet the income test.

Can I Get The JobKeeper Payment At The Same Time As The Parental Leave Pay?

No, parents can’t get JobKeeper Payments at the same time as Parental Leave Pay. They can get Parental Leave Pay after the payments they get from the JobKeeper Wage subsidy end, but only if they didn’t work since their child’s birth or adoption.

What Is Flexible Paid Parental Leave?

Parents with children that are born or adopted on or after 1 July 2020 will get up to 30 Flexible Paid Parental Leave days in addition their 12 week Paid Parental Leave period. The Paid Parental Leave Period must be taken in one block, but the employer and employee can agree when the employee will take the Flexible Paid Parental Leave days, as long as they are taken within 24 months of the birth or adoption of a child.