Paid Parental Leave scheme eligibility

Paid Parental Leave scheme for working parents

Learn about Parental Leave Pay and Baby Bonus, and decide which payment is better for you by watching this helpful video.

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Am I eligible?

You may be eligible for Parental Leave Pay if you:

• are the primary carer of a newborn or recently adopted child, usually the mother
• are an Australian resident
• have met the Paid Parental Leave work test before the birth or adoption occurs
• have received an individual adjusted taxable income of $150 000 or less in the financial year prior to the date of birth, adoption or date of claim, whichever is earlier, and
• are on leave or not working from the time you become the child’s primary carer until the end of your Paid Parental Leave period.

Your child must have been born or adopted from 1 January 2011 to be eligible for Parental Leave Pay.

Full-time, part-time, casual, seasonal, contract and self-employed workers may be eligible for the scheme.

Who is a child's primary carer?

A child’s primary carer is the person who is most meeting the child’s physical needs. This will usually be the mother of a newborn child or the initial primary carer of an adopted child.

If you are a birth mother, there are some circumstances in which you can receive Parental Leave Pay for up to 18 weeks after the birth even if you are not the primary carer of your child. This may occur if you are temporarily unable to care for your child due to illness, or you may be a birth mother in an adoption arrangement.

Who is eligible to claim?

The birth mother or the initial primary carer of an adopted child must lodge a claim for Parental Leave Pay, unless there are exceptional circumstances.

A person may still be eligible for Parental Leave Pay in the event of a stillbirth or infant death. For more information, refer to the Bereavement Payment page.

If the birth mother or the initial primary carer of an adopted child is found to be eligible for the scheme, they can receive the Parental Leave Pay themselves or they may, if they wish to return to work early, transfer some or all of their unused Parental Leave Pay to:

• their partner
• the other legal parent of the child, or
• the other legal parent’s partner.

The person who you transfer Parental Leave Pay must also meet the eligibility criteria and lodge a claim for the scheme. This person cannot be eligible for the scheme if the birth mother or the initial primary carer of the adopted child is not eligible.

What are exceptional circumstances?

A person other than the birth mother or the initial primary carer of an adopted child may be eligible to claim Parental Leave Pay in exceptional circumstances. Exceptional circumstances may apply in cases where the birth mother, initial primary carer or their partner are unable to care for the child. For example this may be due to severe illness or a serious accident. The person claiming Parental Leave Pay would need to meet the scheme’s eligibility criteria and expect to have care of the child for at least 26 weeks. The change of care must have occurred within 52 weeks of the child’s birth or adoption.

If you think you may be eligible for the scheme in exceptional circumstances, you should discuss your individual situation with the Family Assistance Office on 13 61 50.

The Paid Parental Leave work test

To meet the Paid Parental Leave work test you must have:

• worked for at least 10 of the 13 months prior to the birth or adoption of your child, and
• worked for at least 330 hours in that 10 month period (just over one day a week) with no more than an eight week gap between two consecutive working days.

A working day is a day you have worked for at least one hour.

There are some exceptions if you do not meet the work test due to pregnancy complications and/or premature birth.

You do not need to be working full-time to be eligible for Parental Leave Pay. You may meet the work test even if you:

• are a part-time, casual or seasonal worker
• are a contractor or self-employed
• work in a family business (such as a farm)
• have multiple employers, or
• have recently changed jobs.

If you work for a family business (such as a farm), you can include your hours of work even if the business is not generating any income, providing you are undertaking the work for financial gain or benefit.

Can I work while receiving Parental Leave Pay?

No. To receive Parental Leave Pay, you must be on leave or not working from the time you become your child’s primary carer until the end of your Paid Parental Leave period*. If you return to work before that time your Parental Leave Pay will stop from that day. If you decide to return to work early, the unused part of your Parental Leave Pay may be transferred to your partner if they meet the eligibility criteria and claim your unused Parental Leave Pay.

If you decide to return to work or your circumstances change before the end of your Paid Parental Leave period, you will need to notify the Family Assistance Office on 13 61 50.

Under the Paid Parental Leave scheme you have the option, with your employer’s agreement, to Keep in Touch with the workplace. The purpose of the Keeping in Touch provision is to allow you to remain connected with the workplace without losing your entitlement to Parental Leave Pay.

More information about Keeping in Touch provisions refer to the questions and answers for parents page.

* In the case of stillbirth or infant death, however, you may return to work and continue to receive Parental Leave Pay. You will need to notify the Family Assistance Office on 13 61 50 if this applies to you.

What if I am self-employed and receiving Parental Leave Pay?

To receive Parental Leave Pay, you must be on leave or not working from the time you become your child’s primary carer until the end of your Paid Parental Leave period.

If you return to work before that time your Parental Leave Pay will stop from that day.

If you are self-employed, your Parental Leave Pay will be provided by the Family Assistance Office in fortnightly instalments.

If you decide to return to work or your circumstances change before the end of your Paid Parental Leave period, notify the Family Assistance Office on 13 61 50.

You will be able to keep an eye on your business without being regarded as having returned to work. You will be able to oversee the business’ operations, and perform the occasional administrative task. Types of activities that may be considered as overseeing or performing an occasional administrative task may include:

• paying an account
• checking on the delivery of an order
• approving the business accounts
• dealing with ad hoc disputes
• organising a repair, or
• recruiting replacement staff to manage your absence from work.

You will be regarded as having returned to work if you perform your usual pre-birth or pre-adoption duties at any time from the time you become your child’s primary carer until the end of your Paid Parental Leave period, even at reduced hours or a reduced level.

If you are self-employed and need to provide Parental Leave Pay to your employee, more information is available about your role as employer in the Employer Toolkit.

Example - Self-employed mum

Lisa is a young mum who runs an online business selling customised jewellery. Her business is run from home and she works around 15 hours a week.

Lisa is expecting her second child. She is eligible for the Paid Parental Leave scheme as she meets the eligibility criteria. Lisa also meets the eligibility criteria for Baby Bonus.

Before Lisa lodges her claim for Parental Leave Pay, she uses the Paid Parental Leave Comparison Estimator to see if she will be better off receiving Parental Leave Pay or Baby Bonus.

Lisa lodges a claim for Parental Leave Pay three months before the expected date of birth of her second child, and nominates her Paid Parental Leave period to begin on the day of her baby’s birth. Because Lisa is self-employed, she is provided her Parental Leave Pay by the Family Assistance Office.

Lisa employs another person to help her keep the business running and perform necessary tasks such as ordering supplies, filling orders and updating the website. As a self-employed worker, Lisa is able to oversee the business and perform occasional administrative tasks whilst receiving Parental Leave Pay.

Will the Paid Parental Leave scheme affect existing leave entitlements offered by my employer?

The Paid Parental Leave scheme provides you with Parental Leave Pay but does not give you an entitlement to leave. The scheme does not change any of your existing leave entitlements.

If you are eligible for the Paid Parental Leave scheme, you will be able to access up to 18 weeks of government funded Parental Leave Pay, as well as any of your existing employer provided paid or unpaid leave. You can take your Parental Leave Pay before, during or after any paid or unpaid maternity or parental leave, or other employer funded leave entitlements (such as annual leave or long service leave).

If your employer currently provides paid maternity or parental leave through an industrial agreement, they cannot withdraw the entitlement for the life of that agreement.

Under the National Employment Standards in the Fair Work Act 2009, if you have been employed by your employer for 12 months or more prior to the birth or adoption, you may be entitled to access up to 12 months unpaid parental leave associated with the birth or adoption of your child. You can also request an additional 12 months unpaid leave on top of this.

If you are unsure what your leave entitlements are, refer to the Fair Work Ombudsman website or call 13 13 94.

What is the Paid Parental Leave Comparison Estimator?

If you think you may be eligible for Parental Leave Pay and Baby Bonus, you can use the Paid Parental Leave Comparison Estimator to help you decide which payment is the best financial decision for your family. The Paid Parental Leave Comparison Estimator will ask you to answer questions about your circumstances and will provide you with a comparison between Parental Leave Pay and Baby Bonus.

More information

• Paid Parental Leave scheme questions & answers