Accounts HQ blog

What does the paid parental leave mean to small business employers?

Monday, November 08, 2010 posted by Samantha Smith

Australia’s first Paid Parental Leave scheme starts on the 1 January 2011, however participation in the scheme will remain voluntary until the 30 June 2011 for employers.  The Parental Leave Pay is funded by the Australian government (phew I hear you say) and will apply to most working parents, including full-time, part-time, self-employed, casual, contract and seasonal employees provided they meet the eligibility criteria.

The Parental Leave Pay will be paid to the employee for a maximum of 18 weeks at the National Minimum wage – which is currently $570 before tax per week.  The child will need to be born or adopted on or after 1 January 2011 for the employee to be eligible.

So how does it work?  If the press is to be believed it will be a simple case of the government paying the employer the funds, then the employer paying the employee with a little paperwork in between.  How easy this will be in practice is yet to be seen, but is discussing with your bookkeeper for the 2011/2012 financial year.

For more information on what your obligations are as an employer, or to find out who is eligible please visit the Paid Parental Leave web site.
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