• Brooke Azar

Oh Baby! 2.0 The 2022 Federal Budget and Parental Leave Pay

Whilst some of us might have tuned out on 2022 Federal Budget announcement after hearing of there will be petrol cuts the Budget delivered big news for expecting parents; the combination of paid parental leave (18 weeks’ pay) and paid partner leave (2 weeks’ pay).


Expecting parents will now be entitled to a total of 20 weeks’ parental leave pay which they can divide amongst themselves as they chose. Single parents will have access to the full 20 weeks’ paid leave.


Another big change to the paid parental leave scheme is an increase in the threshold of income eligibility from $150,000 for expecting Mother's only to $350,000.00 per household. This will mean that more households will be eligible to receive the benefit of the scheme.


To date, the number of new parents/fathers who take paid partner leave (2 weeks) is lower than those who are actually eligible to take paid partner leave. The practicality and the benefit of the Federal government’s change to the paid parental scheme might not be as straightforward as the government intended, particularly in circumstances of a significant income disparity between parents. Will new fathers be encouraged to take more leave? Or will expecting fathers take less leave or no leave, for the benefit of their partner? Whilst the new change encourages flexibility amongst household and increases the eligibility for new parents, perhaps increasing paid partner leave or the wage paid under the scheme would have offered new parents more support than the recent change.


The new paid parental leave laws will be in place by 1 March 2023. Until then, expecting parents can read my article Oh Baby! What You Need to Know About Parental Leave Pay for an outline on how the current scheme works

 

If you need assistance navigating the Employment Law or resolving an employment dispute we have a Specialised Team who may assist you. Contact us at law@vrtlawyers.com.au or call 02 9264 7244 for an appointment at our City Office, 162 Goulburn Street or our Mascot Office, 1129 Botany Road, Mascot.



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