Parental leave in Australia refers to leave entitlements that allow employees to take time away from work to care for a newborn or newly adopted child. 

Consists of government-funded PL Pay, employer-provided paid parental leave, and unpaid PL entitlements protected under the National Employment Standards. The system aims to support parents in balancing work and family responsibilities while maintaining their connection to the workforce.

Types of parental leave in Australia

Government-funded parental leave pay

• Primary Carer Pay: Up to 20 weeks of pay at the national minimum wage for the primary carer
• Dad and Partner Pay: Up to 2 weeks of pay at the national minimum wage for fathers and partners
• Administered by: Services Australia (formerly Centrelink)
• Eligibility: Must meet work, income, residency tests, and be caring for a newborn or newly adopted child
• Work test: Must have worked 10 of the 13 months before the birth or adoption, with no more than an 8-week gap between work days
• Income test: Individual adjusted taxable income of $156,647 or less in the financial year either before the date of birth or adoption, or the date of claim, whichever is earlier

Employer-provided paid parental leave

• Varies widely between employers
• Often more generous in public sector and large corporations
• May include primary carer leave, secondary carer leave, and adoption leave
• Typically runs concurrently with or in addition to government schemes
• May be paid at full salary rather than minimum wage
• No legal requirement for employers to provide paid leave beyond government schemes

Unpaid parental leave (National Employment Standards)

• 12 months of unpaid leave entitlement
• Right to request an additional 12 months (24 months total)
• Job protection guaranteed for the leave period
• Available to full-time, part-time, and eligible casual employees
• Requires 12 months continuous service with employer
• Can be taken by both parents but not usually at the same time (except for an initial 8-week period)

Eligibility requirements

Government scheme eligibility

• Australian resident
• Primary carer of newborn or newly adopted child
• Individual income of $156,647 or less
• Meet the work test (worked 10 months of the 13-month period prior to birth)
• Not working during the Parental Leave Pay period
• Casual workers, contractors, and self-employed people may be eligible if they meet the work and income tests

Unpaid leave eligibility

• 12 months of continuous service with employer before the date of birth or placement
• Casual employees must have been employed on a regular and systematic basis with a reasonable expectation of continuing employment

How parental leave works

Application process

• Government Parental Leave Pay: Apply through Services Australia up to 3 months before expected date of birth
• Employer-provided leave: Follow internal HR processes
• Unpaid leave: Provide written notice at least 10 weeks before starting leave
• Supporting documentation required (e.g., birth certificate, proof of adoption)

Timing and flexibility

• Can start up to 6 weeks before expected birth
• Can be taken in one continuous period or flexibly in blocks (for government Parental Leave Pay)
• Unpaid leave must generally be taken in one continuous period
• Dad and Partner Pay must be taken within 12 months of birth or adoption

Employment protections

• Right to return to previous position after leave
• Protection from discrimination based on pregnancy or parental status
• Protection from dismissal due to taking parental leave
• Continuity of service maintained during leave period
• Annual leave and long service leave continue to accrue during unpaid parental leave

Special circumstances

Adoption

• Similar entitlements to birth parents
• Child must be under 16 years of age
• Leave typically commences from the day of placement

Stillbirth or infant death

• Parents remain eligible for entitlements
• Additional bereavement leave may be available
• Special compassionate provisions may apply

Surrogacy

• Intended parents may be eligible for unpaid parental leave
• Government Parental Leave Pay eligibility depends on specific circumstances
• Legal parentage must generally be established

Same-sex couples

• Equal rights to entitlements
• Both parents in a same-sex relationship can access primary and secondary carer leave based on their caring role, not gender

Financial considerations

Government payment rates

• Paid at National Minimum Wage (approximately $812.60 per week as of July 2023)
• Taxable income
• Does not include superannuation
• May be paid by employer or Services Australia directly

Superannuation

• No legal requirement for superannuation contributions during government Parental Leave Pay
• Some employers voluntarily continue superannuation during paid and/or unpaid leave
• Public sector typically provides superannuation during paid parental leave

Interaction with other entitlements

• Can be taken in addition to employer-funded leave
• Family Tax Benefit may be available during parental leave
• Cannot receive Parental Leave Pay and certain other government payments simultaneously

Recent and upcoming changes

2023 federal budget changes

• Increased flexibility with leave able to be taken in blocks
• Single parents eligible for full 20 weeks
• Both parents can take leave simultaneously if desired
• Paid Parental Leave scheme progressively increasing to 26 weeks by July 2026

Employer trends

• Increasing number of employers offering “top-up” pay to full salary
• Growth in gender-neutral parental leave policies
• More organisations removing distinction between primary and secondary carers
• Extended leave periods beyond minimum requirements

State-specific variations

Public sector entitlements

• Commonwealth public servants: 16 weeks paid leave
• NSW public sector: 14 weeks paid leave
• Victoria public sector: 16 weeks paid leave
• Queensland public sector: 14 weeks paid leave
• Western Australia public sector: 14 weeks paid leave
• South Australia public sector: 16 weeks paid leave
• Tasmania public sector: 14 weeks paid leave
• ACT public sector: 18 weeks paid leave
• Northern Territory public sector: 14 weeks paid leave

State-based schemes

• Some states offer additional benefits or support programs
• State-based anti-discrimination laws provide additional protections

Best practice for employers

Policy development

• Clear, accessible parental leave policies
• Gender-neutral language and approach
• Flexibility in how leave can be taken
• Support for transition back to work

Supporting employees

• Keeping in touch programs during leave
• Graduated return to work options
• Breastfeeding/expressing facilities
• Flexible work arrangements post-leave

Administration

• Effective management of leave applications
• Proper record-keeping
• Compliance with notification requirements
• Coordination with payroll for government scheme payments

Common issues and solutions

Knowledge gaps

• Many employees unaware of full entitlements
• Solutions: comprehensive information sessions, clear policies, parental leave toolkits

Career impact

• Concern about career progression after taking leave
• Solutions: keep-in-touch days, transparent promotion processes, parental leave mentoring programs

Financial strain

• Government payment at minimum wage may cause financial hardship
• Solutions: employer top-up schemes, financial planning assistance, flexible payment options

Return to work challenges

• Difficulties balancing work and family responsibilities
• Solutions: flexible work arrangements, childcare support, phased return programs

Resources and support

Government resources

• Services Australia (Centrelink)
• Fair Work Ombudsman
• Women’s Economic Security Statement initiatives

Support organisations

• Australian Breastfeeding Association
• Parentline
• Raising Children Network
• PANDA (Perinatal Anxiety & Depression Australia)

Legal assistance

• Community legal centres
• Fair Work Commission
• Australian Human Rights Commission