From 1 July 2023, both parents will have the flexibility to share parental leave payments and time off work, enabling them to better balance their caring responsibilities with their professional commitments. This article outlines the changes and what they mean for employee well-being and employers.

What is changing?

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The new laws combine two existing payments into a shared 20-week scheme, expand access and make it easier for new fathers to obtain paid leave. These laws come into effect for parents whose babies were born or adopted from July 2023. The changes are in addition to those to unpaid parental leave arrangements introduced in June 2023.

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Key points to note:

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• The legislation scraps the requirement that the primary Paid Parental Leave (PPL) claimants must be the birth parent which means that either parent can apply for paid parental leave first

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• Parents will also be able to access the entitlement in multiple blocks with periods of work in between to grant them further flexibility around how they take the leave

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• Single parents will be able to access the full 20-week entitlement, up from the current 18 weeks

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• Parents will be permitted to pre-claim up to three months before the expected date of birth or adoption so there is no delay in receiving payment. Pre-claims under the improved scheme will be open from the end of March

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• The new family income threshold of $350,000 per year will also see 3,000 additional parents become eligible for the PPL policy according to the Department of Social Services

Why is it important?

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The new legislation will give both parents the option to share parental leave payments and take time off work, which may require employers to adjust their staffing plans to accommodate the leave requirements. However, by promoting gender equality and improving family support measures, the new law is likely to improve employee retention and productivity, as workers who feel supported in their family and personal lives are generally more engaged and satisfied in their jobs. Employers may also benefit from a more positive reputation as a family-friendly workplace and could attract a more diverse pool of job applicants as a result.

Next Steps

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To find out more about how employee benefits can help enhance your business’ employee attraction and retention objectives, feel free to reach out at any time.

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Manouri Adikaram

Client Manager ‑ Employee Benefits

manouri.adikaram@honan.com.au