Many parents will bemoan the axing of the baby bonus from 1
March 2014, as outlined in the recent Federal Budget.
About 28,000 families would miss out completely under the change
while another 20,000 are expected to instead take Paid Parental
So how does PPL work?
Basically, the scheme provides financial support to eligible
working parents when they take time off work to care for a newborn
child or recently adopted children.
Under the scheme, the Government funds employers to provide PPL
to their eligible employees.
The financial support provided by the scheme complements
parents' existing entitlements to paid and unpaid leave in
connection with the birth or adoption of a child. Full-time,
part-time, casual, seasonal, contract and self-employed workers may
For mums, PPL is up to 18 weeks at $606.40 per week before
From 1 January this year, PPL was extended to include 'Dad
and Partner Pay', which is two weeks at $606.40 per week before
tax. For both groups, payment is based on adjusted taxable income
of $150K or less in previous financial year.
Dad and Partner Pay is for eligible working dads or partners
(including adopting parents and same-sex couples). They must not be
working during this time or must be on unpaid leave.
Employers do not play a role in providing Dad and Partner Pay
– the Government pays employees directly, however, it's
still important to be aware of Dad and Partner Pay because your
employee may approach you about taking unpaid leave so that they
can receive Dad and Partner Pay.
The PPL scheme is also designed to help employers to retain
valuable and skilled staff. In the long-term, PPL assists employers
through increased workforce participation of parents.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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