How much is Paid Parental Leave?

How Much is Paid Parental Leave? – Myth v Fact

So how much is Paid Parental Leave? Just like one big game of broken telephone, the information that gets passed around about Paid Parental Leave (PPL) changes depending on who you speak to. Since there is so much to know it is understandable. I’ve made a list of some of the more common things that I have heard or read, especially in Facebook groups, about your right to receive PPL and will try to set the record straight.

1. You have to have worked for one employer during your entire pregnancy.
You need to meet the Work Test to receive PPL. The test does not measure how many jobs you have had, but how many hours of work you have performed. You need to have worked for 330 hours in a 10 month period over the 13 months before you due date. You can achieve this in one job or many jobs. This includes contract work and also working two or more jobs at once. Keep a record of the number of hours of work you perform during this time to ensure you meet the Work Test.

2. You have to be working for a year before you go on parental leave.
I believe that this false comment comes up because of a different rule, from a different law, that has nothing to do with PPL. That is, if you have worked for 12 months continuously for an employer, they are required to give you 52 weeks of unpaid maternity leave. This is completely different to the requirements under the Paid Parental Leave Act 2010 which contains the laws about the payment of PPL. Note that one law discusses the rules about you being able to take the parental leave and the other the rules about the payment of money for PPL. It is possible to qualify for one and not the other. If you meet the Work Test, even if it is for more than one employer you will still be paid PPL, but your employer may not be required by law to give you leave. Given that you can’t work while receiving PPL this may be problematic for some.

3. You don’t get PPL if you are Self Employed
You certainly are entitled to receive it; it just takes a little extra planning. You will need to specify in your application to be paid directly by Centrelink rather than an employer. Also you will need to work out the best way for you to show Centrelink that you have worked the 330 hours in the Work Test. This varies for everyone but you could keep a diary or perhaps show the invoices that you have issued during the period before your due date.

4. You apply after you have given birth
Not necessarily. You can submit your application up to 90 days before your due date. Personally I think that this is the best time to do this as once you have given birth, the last thing you want to be doing is paperwork! You will receive a proof of birth document from your hospital that can be uploaded to Centrelink online or on their App which is then matched to your application to begin your payment of PPL.

5. Everyone can get it.
That would be nice wouldn’t it? As I mentioned, you need to meet the Work Test in order to receive PPL. You also need to be a permanent resident, earn less than $150,000 in the financial year that ended before your application and not be working at all whilst receiving your PPL.

6. You have to go into Centrelink to Apply.
If you can avoid doing this then do it! Your application can be done online through the governments’ website my.gov.au. If you have never dealt with Centrelink before you will need to go in to allow for them to view your original documents for proof of identity. Otherwise, apply online as much as you can, I can’t stress this highly enough!!

7. Paid Parental Leave includes Superannuation
The law does not require your employer to continue to pay into your Super fund while you are receiving PPL. However, I have noticed a very small number of companies starting to do this. Given the large variation is Superannuation balances between men and women the older they get then I wonder if this could be something that future governments consider changing.

I’m sure there are many more myths surrounding Paid Parental Leave so I hope this covers the main ones. How much is Paid Parental Leave? From 1 July 2018, Paid Parental Leave is $719.35 a week for 18 weeks. If you would like help with filling out your application, enter your details below for my free checklist. It tells you every piece of data that you need to enter into your application.

 

I am on a mission to help first time parents avoid having to go into Centrelink or wait hours on the phone to ask a quick question about their Paid Parental Leave! It’s a painful experience and most people assume that you don’t have a choice when already so overwhelmed by the whole process. Now there is a guide that will just tell you everything you need to know so you don’t have to waste valuable time figuring it out for yourself.

The eBook Making Sense of Paid Parental Leave can be purchased here:

Is paid parental leave taxable?

Is Paid Parental Leave Taxable?

Is Paid Parental Leave Taxable? YES, paid parental leave is taxable income. How much is taken out really depends on the circumstances of your leave arrangement and who is making your payments. In 2018-19, paid parental leave is $719.35 a week and paid through your normal payroll by your employer or directly through Centrelink.

Paid by your employer

If this is your only income during the 18 weeks from your employer then you should get $634 a week after tax. However everyone’s situation is different and you may be receiving other leave payments at the same time such as annual leave or paid maternity leave. Your employer will take the amount of tax that is relevant to your situation so it may be different to someone else you know getting paid parental leave at the same time as you.

Also as it is paid through your employers normal payroll cycle, if you are only paid once a month then you will only receive your paid parental leave payment at this time. You should receive a pay slip with your payment from your employer similar to what you would have received if paid your normal salary.

I was fortunate to also receive paid maternity leave from my employer for 13 weeks.  Therefore during my normal pay cycle each fortnight I was receiving my Paid Parental Leave plus my maternity leave pay from my employer. This meant that more tax was taken out of my fortnightly pay than if I was just receiving my PPL. For my second child I chose to have my 13 weeks of maternity leave pay spread out over 26 weeks at half pay. Therefore the amount taken out of my pay in tax would have been different again.

Paid by Centrelink

If you receive your Paid Parental Leave directly from Centrelink then your rate of tax is different again. This might occur if you are self employed or have not worked for your employer for longer than a year or even if you don’t intend to return to that employer. In this case the rate of tax that Centrelink will take out of your payment is 15%. This reduces your payment down to $611.45.

Income Tax Return

What all of this also means is that your Paid Parental Leave taxable income needs to go onto your Income Tax Return. Your employer will still need to give you your annual PAYG Payment Summary which will include your Paid Parental Leave. This is included in your Gross Payment amount and the Total Tax Withheld amount. It doesn’t need to be separately disclosed.

If you have received your payment from Centrelink, they will send you a PAYG Payment Summary directly which will include the Paid Parental Leave details for you to include in your tax return.

 

I have created a free checklist that you can download to help you gather the information you will require when you sit down and prepare your application. Enter your details below and the PPL Checklist will be emailed to you.

As always, feel free to ask any questions.

Lisa

I am on a mission to help first time parents avoid having to go into Centrelink or wait hours on the phone to ask a quick question about their Paid Parental Leave! It’s a painful experience and most people assume that you don’t have a choice when already so overwhelmed by the whole process. Now there is a guide that will just tell you everything you need to know so you don’t have to waste valuable time figuring it out for yourself.

The eBook Making Sense of Paid Parental Leave can be purchased here:

Completing your Child Care Subsidy Assessment

We now know that we wont automatically transfer across from the Child Care Benefit to the new Child Care Subsidy. For this to happen, you must complete a Child Care Subsidy Assessment before 2 July 2018 to continue to received Child Care funding. This post has the instructions to help you do this quickly. Honestly I got it done in about 7 minutes however my husband and I have regular hours so there wasn’t anything we needed to calculate.

I updated my information in the Centrelink App, but if you log into your my.Gov.au account you will also be presented with a list of Tasks to complete.

1. I have two tasks to complete and I press the Task button and swipe to the Child Care Subsidy assessment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2. There are four tasks that need to be completed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3. The first task asks for your estimated income in the 2018-19 financial year. Complete this in the exactly the same way you have done each year that you have accessed the Childcare Benefit. Add together any salary, fringe benefits tax, child support etc.  You could estimate this amount, but I would give this some serious consideration if you think that your family could be near the amount of $186,958. Family income over this amount is subject to a cap each year. For the 2018/19 year it has been indexed up to $10,190.

4. You then need to put in an estimate of the number of hours a fortnight that you and your partner meet the Activity Test, for a full list of Activities you can include refer to this post, but the main items you count hours for are:

  • Paid Work – including maternity or paternity leave, long service leave and annual leave
  • Study
  • Training
  • Unpaid internship or work experience
  • Volunteering
  • Setting up a business
  • Unpaid work in a family business
  • Looking for work
  • Caring for a child or adult with a disability

If you are in casual work – and therefore the number of hours you perform a work activity is different each fortnight, you will be asked to estimate the highest number of hours you expect to work in any fortnight over a three month period. This is the part that may take the most time to calculate.

I used the current date as a start date.

You can add a new Activity Test for each different activity you perform each fortnight. Just use the plus sign at the bottom.

 

5. Review the school details of each child that you have currently enrolled for Childcare Benefit. If your child is not yet at school then select none. Otherwise select Primary Education is they are enrolled at school.

6. Confirm all your information and you will receive a Claim ID.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

What else?

If you want the easy explanation about all the new changes, I have prepared The Child Care Subsidy Solution. A simple, straight forward FREE ebook that shows you how the new Subsidy works and what you could do to increase your Subsidy. Download your copy by entering your details below.

What is the Child Care Subsidy Activity Test?

The number of hours of Child Care Subsidy that your family receives is dependent on the number of Activity hours that you undertake each fortnight. This is called the Activity Test. You will be asked to estimate your fortnightly Activity Test hours in your Child Care Subsidy Assessment. Details of that can be found here.

If your family earns above $66,958 per year, the hours of Subsidy per child that you receive are:

8+ > 16 hours a fortnight of Activity = 36 hours a fortnight of Subsidy

16+ > 48 hours a fortnight of Activity = 72 hours a fortnight of Subsidy

48+ hours a fortnight of Activity = 100 hours a fortnight of Subsidy

The number of hours a fortnight are measured against the parent with the lowest number of hours performed each fortnight.

ok, so, what meets the Activity Test?

It’s a long list but there are a few things worth knowing

    • paid work
    • paid leave (annual, sick, long service etc)
    • self employed work
    • unpaid work in the family business
    • training to improve your work skills
    • approved study
    • volunteering
    • looking for work will meet 8 hours a week of the Activity Test which can be combined with other Activities
    • travel time between the child care service and parents place of activity – but try to be reasonable
    • they can all be added together
    • they dont have to be performed during the hours that the child care service is being provided
    • you dont have to provide proof of the number of hours when estimating
    • but there might be spot checks – so be reasonable
    • casual workers will need to estimate their Activity Test over a three month period – include the fortnight with the highest number of hours in your estimate
    • If you receive a Carer Payment you will automatically undertake 100 hours a fortnight towards the Activity Test.
    • If you receive a Carer Allowance you will automatically undertake 72 hours a fortnight towards the Activity Test. However if you have a partner and they have less hours of activity than you, their hours will be used to determine your Subsidy
    • Grandparents who are primary carers for their grandchildren don’t need to undertake any hours to receive the Subsidy
    • Teachers can apply the same number of hours during the school holidays as they would during term time for the Activity Test
    • Paid and Unpaid Parental Leave is included as an activity. The number of hours used for the Activity Test is the number of hours a fortnight that you were working before going on leave. There is no longer a 12 month maximum of parental leave in order to receive child care payments. However there should be an expectation that you will be returning to your job as part of your employment.

What else?

If you would like more information on the new Child Care Subsidy, I have prepared The Child Care Subsidy Solution. A simple, straight forward FREE ebook that explains exactly what the new Subsidy is all about. You can download a copy by entering your details below.

An explanation of the Additional Childcare Subsidy.

The new Childcare Subsidy has completely changed how families receive their Childcare Payments by merging two payments into one and moving the focus of the Subsidy towards assisting both parents to return to work. As I often say with this – the more you work, the more Subsidy you get!

The government has also introduced a further top up to the Childcare Subsidy called the Childcare Safety Net and one of the parts of this is the Additional Childcare Subsidy. This is focused on assisting families in need and to allow for the most vulnerable children to continue to access Childcare where they may not be able to afford it. These new payments replace the current subsidies of Special Child Care Benefit, Grandparent Child Care Benefit and the Jobs, Education and Training Child Care Fee Assistance payment.

The four additional payments that families can apply to access are:

 

  1. Child Well being

Families could receive an additional child care subsidy for the full amount of their daily fee for up to 100 hours a fortnight to assist children that have been identified to be at serious threat of abuse or neglect. This additional funding can be applied for by both the child’s guardian or the childcare service itself.

 

  1. Grandparents

Grandparents that are principal carers for more than 65% of the time and already receive some form of income support could receive a subsidy for the full amount of their daily fee for up to 100 hours a fortnight.

 

  1. Temporary Financial Hardship

Families that are suffering significant financial hardship due to an exceptional situation could receive an additional child care subsidy for the full amount of the daily fee for up to 100 hours a fortnight. This would be available to them for a maximum of 13 weeks.

 

  1. Transition to Work

This subsidy is available for a family currently receiving one of Parenting Payment, Newstart Allowance, Disability Support Pension or Youth Allowance income support and they have created a Job Plan as part of their Employment Pathway Plan.

They may be entitled to 95% of their daily fee for the number of hours in a fortnight that they meet the Activity Test for the Childcare Subsidy. This will continue for 12 weeks after starting work and their income support has ceased.

You can only access one of these payments at a time.

5. Free Ebook

If you would like more information on the new Child Care Subsidy, I have prepared The Child Care Subsidy Solution. A simple, straight forward FREE ebook that explains exactly what the new Subsidy is all about. You can download a copy by entering your details below.

Paid Parental Leave when you are self employed

Paid Parental Leave when you are Self Employed

I’m in A LOT of Facebook groups targeted to mums and also mums in business. Lately I’ve noticed an increase in questions relating to receiving your 18 weeks of Paid Parental Leave when you are self employed. Yes, you are definitely entitled to receive Paid Parental Leave if you are self employed.

The tests that you have to pass are exactly the same as if you were an employee but most of the information you read online seems to focus on employees. So here are answers to the most common questions.

1.How do you prove that you have met the Work Test?

The Work Test states that you must complete paid work for 330 hours over 10 months within the 13 month period before your due date/date of birth. This does not mean that your business has to make a profit or any money at all. You just need to have been working towards making a financial gain during this time. Volunteer work does not meet the Work Test.

So how do you show how much you have worked in the unlikely event that Centrelink ask you to prove your hours of work?

• Keep a detailed diary of hours worked. Write it down or use a spreadsheet and actually record each day of work and how many hours you spent working.
• If you bill by the hour, use your invoices to show the services provided
• If your clients book in a time to see you, show your schedule of bookings.
• Use your Tax Return or Financial Statements if your can you relate the amount or sales your business has to the number of hours that it takes to make a sale

2. What can you do in your business while receiving Paid Parental Leave?

You cannot perform paid work while you are receiving Paid Parental Leave. When you are self employed, the definition of paid work is where your purpose is to carry out work to make a profit. The only paid work that is allowed, and you can still get paid during this time, is to perform tasks where you are only overseeing the business, performing administrative tasks or other ad hoc activities to keep your business going.

These can include paying an account, checking the delivery of an order, arranging a repair or dealing with a dispute. Notice these examples are administrative as they don’t create a sale or income, which is how you should think about an activity that you want to perform in your business during this time. There is nothing to stop you employing someone else or even getting your mum to perform the tasks that will earn an income for your business.

3. What about ‘keeping in touch days?’

These don’t apply if you are on Paid Parental Leave when you are self employed. The legislation specifically refers to a keeping in touch day’ for people other than self employed. Also, these 10 days are not designed for employees to be performing their usual paid jobs but to keep up to date with training and meetings to help prepare them for a return to work.

4. Where to start?

I have created a free checklist that you can download to help you gather the information you will require when you sit down and prepare your application. Enter your details below and the PPL Checklist will be emailed to you.

As always, feel free to ask any questions.

Lisa

Want to know the best way to apply for Paid Parental Leave?

The eBook Making Sense of Paid Parental Leave will tell you what you need to do - and what you SHOULDN'T do!


Here's what you will get when you buy the eBook: 


  • You’ll download the complete PDF version which shows you how to get your application completed and out of the way - all online.
  • It goes through the different tests and helps you apply them to your situation.
  • It explains how it affects your tax.
  • It also includes Dad & Partner Pay details.
  • It stops you wanting to pull your hair out!


child care rebate

That sneaky thing about your Childcare Rebate

Hi

It’s half way through April now and you’re wondering why has my child care rebate stopped? Aha. Hands up who has maxed out their $7,500 Childcare rebate? But you’re doing the happy dance now that the new laws have gotten rid of the $7,500 Cap? Yes?

Don’t.

That doesn’t start until 1 July 2018 which means that you have an ENTIRE financial year to go until we move onto the new Childcare Subsidy from the system we have now.

So it’s full fees for some of us now until 30 June. Did you know that if you also receive the Childcare Benefit, Centrelink actually withholds the final 15% of your $7,500 until you submit your tax return after 30 June? That means that you stop receiving the Childcare Rebate each financial year when you reach a cap of $6,375 and the remaining $1,125 may or may not be refunded with your tax return.

Why do they do this?

Well it does make sense from Centrelinks’ point of view. The amount you receive for Childcare Benefit is based on an estimate you make at the start of the year of how much you think you will earn. If you underestimate, Centrelink will overpay you during the year and they will want their money back. They get their money back from the $1,125 that they hold back. The only way they know if you have been overpaid is when you do your tax return. Then your estimate becomes the actual and they know for sure if you have been overpaid – or hopefully underpaid.

I have a task for you this week.  Get the statements you receive from your childcare centre. At the very bottom of your statement it will tell you how much of Childcare Rebate you have received this year. Make sure it’s what you expect it to be and that it matches the balance from Centrelink. The reason I want you to do this is because of something that happened to me last month.

I don’t receive the Childcare Benefit. When I applied all the way back in 2011, I ticked the box that said I wanted a percentage of 0%. There was never EVER going to be a chance of any over payment by doing that. I’m an accountant – it’s my job to be conservative!

So when I stopped receiving my Childcare Rebate last month I checked my statement from childcare and it said that I had received $6,375. This didn’t seem right to me as I know the last 15% shouldn’t be withheld from me as I don’t receive the Childcare Benefit.

Then I checked the Centrelink App which showed that in the previous week I had been allocated to receive Childcare Rebate, however on the statement from my childcare centre, it had not been applied. There was a mismatch and it was costing me money!

The issue turned out to be in the software that the childcare centre uses and it was all fixed and I received a credit. The reason that I want you to do this double check is that according to Centrelink I had received the money, but it was not being passed on to me by the centre. As a result, when all the year end balances will be done with my tax return it will not be refunded to me and I would have been out of pocket forever.

Image-1It’s tips similar to this one that are included all throughout my instruction manual Your Family Budget. I don’t just tell you what to do and what it all means, but more than that, I actually give you information that makes it relevant for your situation, whether you are applying for Paid Parental leave or Childcare Payments. Save yourself the stress and the wasted hours of time and download Your Family Budget today.

Lisa

Childcare funding – what’s about to happen?

Hi everyone,

Malcolm Turnbull announced in a speech last week that he intends to introduce changes to Childcare funding as soon as parliament resumes. I understand that this will happen next week. If it does pass through parliament early this year, as hoped by the government, it will start at the intended date of 1 July 2018. I have written in the past in detail what those changes will be and you can read my detailed explanation here.

We are well over due a change. I have calculated that my childcare fees have increased by 57% from 2011 when my eldest started long day care to now with my youngest. However there have been no changes AT ALL to the Childcare Rebate cap of $7,500. In 2011 I did not reach the cap with three days a week of childcare, now in 2017 I will reach it at around 10 months into the financial year. This is for the same level of care and probably with our carers receiving similar salaries. Not impressed.

So what is stopping parliament from passing the legislation that will approve these changes? These changes were first introduced in 2013 so what is taking so long? It is that in order to put an extra $3 billion into Childcare funding, the government wants to raid another Family Benefit. Simply, to increase funding for Childcare payments, the government is planning to reduce funding for Family Tax Benefit and this is creating a lot of push back from those that hold the balance of power in our parliament.

And so we remain at a standstill. Again.

It will be interesting to see what the government will be willing to negotiate in order to see these changes implemented. As usual, I’ll keep you updated.

 

Image-1If you are still unsure of how you can take advantage of the current Childcare funding arrangements, my guidebook Your Family Budget tells you how to set up your arrangements to ensure you don’t have to repay Centrelink at the end of the year. Also it includes details of the best way to receive your payments for your situation plus simple calculations that will help you determine how long it will take for you to reach your Childcare Rebate cap of $7,500. You can purchase and quickly download Your Family Budget here.

Lisa.

 

Update – Changes to Paid Parental Leave

Update: The proposed legislation mentioned in this post did not pass and these laws did not come into place. 

It’s been a bit quiet on the Paid Parental Leave front.  No doubt negotiations have continued behind the scenes between the Senators with the casting votes in the Upper House and the Minister for Social Services who has proposed the changes. As with a lot of these negotiations, in order to get the Bill through the Senate a number of compromises are expected.

In interesting news today, it has been suggested that one of those compromises may be to extend the total Paid Parental Leave period from 18 weeks to 20 weeks. For most parents that would mean two more weeks of $672.60. It would not change the new proposal to reduce the number of weeks of government Paid Parental Leave if you also receive employer provided leave. It would just mean that, if for example, you receive 8 weeks of paid leave from your employer, you would now receive 12 weeks from the government instead of 10.

One of the Senators with a casting vote, Derryn Hinch, is still pushing for a later start date of 1 October 2017 which would mean that anyone who is currently pregnant will not be affected by any changes in the legislation. It would also mean that from now on, anyone who becomes pregnant will not be surprised by the changes and can adequately budget for their proposed leave period. That has been the one thing that has really frustrated me ever since the original ‘double dipping’ changes were delayed as they tried to pass through parliament. If you are going to make changes to the amount of income parents can receive (up OR down), give families and their employers enough time to take these changes into account when planning for their financial future.

Feel free to forward and share this information to anyone who may benefit from the details.

Thanks,

Lisa

That will cost you $12,000 thanks.

Update: The proposed legislation mentioned in this post did not pass and these laws did not come into place. 

Well that took us all a bit by surprise didn’t it? The Fairer Paid Parental Leave Bill is back and it might have more luck getting through the parliament than the last time the Government tried to push it through in 2015.

Since then we have had an election and movement of numbers in both houses of parliament. Personally I don’t think that the Government would try to reintroduce the Bill if it didn’t think it could get it through this time. I’ve read the Bill (I know who does that???) and this is my summary of the important things that you should know if it goes through in its current state. It may still change.

The Bill refers to your employer provided paid leave as ‘primary carer pay’ and I will do the same in this explanation. Paid Parental Leave (PPL) is the 18 weeks of minimum wage provided by the government.

When??????

Well that depends. Although the talk in the media last week was that it will come into effect on 1 January 2017, the reality is that the scheme will start at the beginning of the following quarter after the Bill is signed off by the Governor General. So, if that happens before 31 December 2016, the scheme will start 1 January 2017. If it doesn’t get done until, say, next September, then it will take another year to start from now, etc. etc. This is completely useless for those who are trying to plan their finances for the next year.

From the date of introduction of the Bill, there are 12 sitting days of parliament before the end of 2016. Then they don’t come back until February. Can the government get the support of both Houses of Parliament to pass the Bill in 12 sitting days and get it signed by the Governor General? Perhaps?

How will it work?

Your 18 weeks of PPL will be reduced by the number of weeks of primary carer pay you receive from your employer. If your employer pays you 8 weeks of primary carer pay, you will receive 10 weeks of PPL at the minimum wage.

If your weekly amount of primary carer pay is less than the minimum wage, you will receive a top up to reach the minimum wage. The top up will be paid in one lump sum.

You will no longer be able to receive your PPL and primary carer pay at the same time.

Four Weeks (28 day) Backdating Rule

Currently, if you want the start date of your PPL to be the same as the date of birth of your child, you need to have completed your application by submitting a claim and proof of birth within 28 days of the date of birth. Therefore it is backdated by up to 28 days to the date of birth.

If you complete your application after your child is 28 days old, the start date of your PPL cannot be backdated to before your application. This is fine if you don’t intend to work for the next 18 weeks after you start to receive PPL as once you return to work your PPL has to stop.

However, some parents complete their application much later than 28 days and then find themselves having their payments stopped when they either return to work while receiving PPL or they reach the maximum date for which you can receive PPL.

They actually take the time away from work to care for their child but don’t get paid their full PPL entitlement because their application wasn’t completed early enough. Going forward you will be able to backdate your application by 28 days, regardless of when you complete it within the year after birth.

Break during qualifying period

To be eligible for PPL you need to meet the work test which is to work 330 hours in a 10 month period of the 13 months before birth. Within that period you can have a break between days of work of up to 8 weeks. That period will now be extended to 12 weeks which will help those who don’t have consistent employment to still meet the work test.

Hazardous work

Some pregnant women have to give up work early in their pregnancy as their job is considered to be unsafe and no other suitable job can be found for them. Their work test date of 330 hours in a 10 month period of the 13 months before birth is therefore generally not met and they don’t receive PPL.

Going forward, your work test will become 330 hours in a 10 month period of the 13 months before the date you had to cease work.

Dad and Partner Pay

When PPL is transferred to the father or partner, they still cannot receive more the 18 weeks in total for Dad and Partner Pay, Primary Carer Pay (the fathers/partners entitlement) and PPL.

Payment will now come from Centrelink – not your employer

Now everyone will be paid from Centrelink unless you and your employer agree for you to be paid by your employer. Small businesses must be so happy for this to happen! I can’t find any mention of how much tax will be taken out by Centrelink or whether it will just continue to be 15%.

 

So what do I think? The government thinks that by implementing these changes it will save close to $1billion over 4 years. Sure, but businesses offer primary carer leave/paid maternity leave to attract female staff and promote themselves an employer of choice. Now that there is no benefit in that, won’t they just find other ways to attract female staff and the government will still be making payments over 18 weeks to new parents? (Perhaps a cleaner or ready cooked meals for 18 weeks!!)

The positives are that more parents will become eligible for PPL from the changes to hazardous work arrangements and break between work days. Administration will move away from employers which will help small businesses save time.

What does annoy me is that by giving us no real fixed date in the future no one can really plan ahead. Parents can’t plan how much time they can afford to take off work. This then affects their employers’ ability to plan for their return to work and any employee in a position of maternity cover also doesn’t know how long they will be in their job.

I hope this information is useful for you. If you know of someone who may benefit then please share it with them and tell them to sign up to my email list. I’ll keep updating as things progress so they can keep up to date as well.

If you enjoyed the information I have provided and need more help, then the My Family Budget eBook is what you need to help you apply for Parental Leave Pay and Childcare Benefit. I explain everything so that everyone can understand how it works and then step you through the application process. It’s such a complicated process, but I can help with that.

Lisa

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Your Family Budget eBook – Making Sense of Government Parenting and Childcare Payments.

My guide to everything you will ever need to apply for and understand Parental Leave Pay, Dad and Partner Pay, Childcare Benefit & Childcare Rebate.  All in one place, with easy explanations.