With the federal government’s new Paid Parental Leave Scheme set to begin on January 1st, 2011, now is the time for workers expecting babies in the new year to begin applying.

Some Quick Questions and Answers:

1. What is the new paid parental leave entitlement?
From 1 January 2011, the new Government paid parental leave scheme will provide all eligible working parents with 18 weeks payment at the Federal Minimum Wage (currently $570 per week or $10,260 in total).

2. What if my employer already provides paid parental leave?
The new Government payment is IN ADDITION to any payments your employer currently provides and MUST NOT replace your existing employer-paid parental leave entitlements.

3. Will our union bargain for better parental leave?
Yes. Union members should continue to seek new and better entitlements from employers, including:
• A ‘top up’ to the Government’s payment so parents get their full income
• Superannuation for the period parents are on parental leave
• Paid leave for partners
• Longer periods of employer-provided paid parental leave
• The right for to return to permanent work part-time if a parent wishes.

Further Summary:

The new Federal Government Paid Parental Leave (PPL) scheme starts on 1 January, 2011 and replaces the current Baby Bonus for eligible parents. You can begin applying from October 1, 2010.

The PPL scheme provides 18 weeks payment at the federal minimum wage ($570 per week or $10,260 in total).

This amount is a flat rate available to all eligible parents including part- time or casual employees earning less than $150,000 per year.

Eligibility

To be eligible for the government PPL Scheme, you must have completed at least 330 hours work (1 day per week) for 10 months in the 13 months prior to birth. This includes casuals, contractors and self- employed workers.

Primary care givers who don’t meet the minimum work requirements outlined above may still be eligible for the Baby Bonus.

The Baby Bonus

PPL recipients are not entitled to the tax-free $5,000 baby bonus or Family Tax Benefit B, although you can choose to receive the Baby Bonus instead of PPL if you wish.

When can I take the government PPL?

The government PPL must be taken within 12 months after the birth or adoption of a child. Paid parental leave can be shared between eligible parents (but cannot be taken at the same time).

It is up to you to apply to receive PPL.

Employees are responsible for making the application to the Family Assistance Office. You may apply for a preliminary determination from the Family Assistance Office that you are eligible for PPL. Once your baby is born, you need to verify the birth and then PPL payments can commence.

For more information call the AMWU HelpDesk on 1300 732 698

More details about the new Paid Parental Leave Scheme are available at the Government website for families and community services www.fahcsia.gov.au