International Law

Paid parental leave update

By David Jacobson

Regardless of the composition of the next government, it appears that the paid parental leave scheme which will commence on 1 January 2011 will be changed from 1 July 2012.

The current arrangement will provide eligible working parents with 18 weeks of pay at the weekly rate of the National Minimum Wage.

The ALP has announced “two weeks Paid Paternity Leave for fathers of newborn babies.

This will be provided in addition to Federal Labor?s 18 weeks Paid Parental Leave. Parents will still be able to choose to share the 18 weeks Paid Parental Leave between them.

Federal Labor?s new entitlement for two weeks dedicated paternity leave pay will be made available to eligible dads from 1 July 2012.”

The Coalition?s Paid Parental Leave scheme will:

• provide mothers with 26 weeks paid parental leave, at full replacement wage (up to a maximum salary of $150,000 per annum) or the Federal Minimum Wage, whichever is greater;
• include superannuation contributions at the mandatory rate of nine per cent;
• allow two out of the 26 weeks to be dedicated paternity leave to be used simultaneously or separately to the mother?s leave, paid at the father?s replacement wage (up to a maximum of $150,000 per annum) or the Federal Minimum Wage, whichever is greater, plus superannuation.
• use the same work test and eligibility conditions as the recently legislated scheme;
• be funded by a 1.5 percent levy on companies with taxable incomes in excess of $5 million. The levy will apply only to taxable income in excess of $5 million.
• be paid and administered by the Family Assistance Office

If the Coalition forms government, subject to the passage of legislation, the Coalition?s Paid Parental Leave scheme will be introduced on 1 July 2012. Until the Coalition?s scheme is fully operational, Labor?s legislated paid parental leave scheme, due to commence on 1 January 2011, will be maintained.

Full post as published by Australian Regulatory Compliance Review on August 22, 2010 (boomark / email).