As an employer you may be required to, or choose to, provide paid parental leave to your employees to help support them while they’re away from work and caring for a new child.

The Australian government currently provides up to 20 weeks of Parental Leave Pay under the Paid Parental Leave Scheme at the minimum wage to eligible employees. The current payment is $882.75 per week before tax.

For children born or adopted prior to 1 July 2023, this was available under 2 separate payments: up to 18 weeks of Parental Leave Pay and up to 2 weeks of Dad and Partner Pay.

For children born or adopted from 1 July 2023, Dad and Partner Pay no longer exists and Parental Leave Pay can be shared between parents.

Employers may be required, if directed by Services Australia, to collect this payment from the government and pass it on to their employees as part of their normal pay cycle.

Employers may choose to pay their employees a top-up payment to supplement their Parental Leave Pay. This is at the employer’s discretion.

The Paid Parental Leave Scheme Employer Toolkit from Services Australia is an excellent guide for Employers. Some of the key points are listed below. Please refer to the toolkit for a complete list of requirements.

Some Key Points

Employers need to:

• Negotiate leave arrangements with your employee in accordance with the Fair Work Act 2009 and any relevant award or agreement. The Paid Parental Leave scheme does not automatically entitle employees to additional leave.
• Provide the business’ bank account details for the Parental Leave Pay to be paid into
• Pay the Parental Leave Pay to your employee as part of their regular pay cycle
• Withhold tax at the regular rates
• Include Parental Leave Pay received from the government as taxable income in your tax return and claim a deduction for Parental Leave Pay paid to employees

Employers don’t need to:

• Determine if your employee is eligible; Services Australia will do that
• Be out of pocket; Services Australia will always pay you in advance
• Accrue additional leave balances
• Pay additional superannuation
• Pay additional payroll tax
• Pay additional worker’s compensation premiums

Self-Employed or Family Businesses

If you are a new parent who is self-employed or works in a family business where you are not an employee you will need to apply directly to Services Australia and if eligible they will pay your Parental Leave Pay directly to you.

Steps for Employers