The Albanese Labor Government took another step towards advancing gender equality today with legislation to enhance the Paid Parental Leave scheme passing the House of Representatives.
The Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Bill 2022 will support women’s workforce participation, while helping more dads and partners to take time off work to be with their children.
“The changes taking effect from July 2023 will deliver a single Paid Parental Leave scheme, with a flexible 20 week entitlement for working parents,” Minister for Social Services, Amanda Rishworth said.
“Around 180,000 Australian families take up this benefit each year and they will now be able to share their entitlement in the way that best suits their circumstances.”
The changes will enable either parent to claim Parental Leave Pay first, and access the entitlement in multiple blocks, as small as one day, with periods of work in between.
A new family income test of $350,000 per annum will also see nearly 3,000 parents become eligible for the entitlement.
Pending passage through the Senate, the changes will come into effect for parents whose children are born or adopted from 1 July 2023. Parents can pre-claim up to three months before the expected date of birth or adoption so there is no delay to receiving payment. Pre-claims under the improved scheme will be open from the end of March.
“Paid Parental Leave was one of the priority issues raised at our Jobs and Skill Summit. This Bill is proof that we listened and we are delivering,” Minister Rishworth said.
“This legislation is the important first stage of our major reform of the Paid Parental Leave scheme and lays the foundations for expansion to 26 weeks by 2026.
“Not only will our reform help families better balance work and care, but it will also support participation and productivity over the longer term, providing a dividend for the Australian economy.”
The Government will bring forward additional legislation to increase the scheme to 26 weeks by 2026.
More information about the Government’s Paid Parental Leave changes can be found on the Department of Social Services website.