On 6 March 2023 the Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Bill, was passed in the Senate. It amends the Paid Parental Leave Act to make the payment more accessible, more flexible and gender neutral.

From 1 July 2023, the following changes apply to paid parental leave provided by the Commonwealth Government:

  • Paid parental leave is extended from 18 weeks to 20 weeks, with two weeks reserved on a "use it or lose it" basis for each claimant;
  • The pre-existing dad and partner pay will be abolished, as the increase results from combining the current maximum of 18 weeks of parental leave pay with the 2 weeks of dad and partner pay.
  • Single parents can access the full 20 weeks;
  • Removal of the notion of ‘primary’, ‘secondary’ and ‘tertiary’ claimants;
  • Removal of the requirement that the primary claimant be the birth parent, this will allow families to decide who will claim first and how they will share the entitlement;
  • Claimants can access paid parental leave in blocks as small as one day at a time within two years of birth or adoption (subject to notice and approval by the employer);
  • The requirement to remain off work to be eligible will be removed;
  • Introduction of a $350,000 family income limit under which families can be assessed if they do not meet the individual income test; and
  • An eligible father or partner can receive parental leave pay regardless of whether the birth parent meets the individual income test, residency requirements or is serving a waiting period (for newly arrived residents).

Further expansion of the paid parental leave scheme is expected to be announced by July 2024 with proposed increases to the scheme's paid leave entitlement by two weeks per year until it reaches 26 weeks in 2026.

The paid parental leave provided by the Commonwealth Government does not impact the payment of paid parental leave provided in the AISNSW MEAs.

The AISNSW will keep you updated on changes. Please contact the Workplace Management Team on (02) 9299 2845 if you have any questions.