Commonwealth-funded Parental Leave Pay

Authored by Leanne Dorricott, Senior Associate, and Marissa Dooris, Lawyer, Corrs Chambers Westgarth. Updated by the LexisNexis Legal Writer team.

What is Commonwealth-funded Parental Leave Pay?

The Commonwealth government’s paid parental leave scheme was established under the Paid Parental Leave Act 2010 (Cth) (PPL Act). The scheme is for the payment of parental leave pay (s 3A(1), PPL Act), not for leave as such.

The objects of the scheme include to provide financial support to parents caring for children: s 3A(2)(c), PPL Act. The financial support is intended to complement and supplement existing entitlements to paid or unpaid leave in connection with the birth or adoption of a child: s 3A(3), PPL Act. It is not assessed by reference to employment status (compare unpaid parental leave under Pt 2-2, Div 5 of the Fair Work Act 2009 (Cth) (FW Act)).

From 1 July 2020, amendments were made to the PPL Act by the Paid Parental Leave Amendment (Flexibility Measures) Act 2020 (Cth) (PPL Flexibility Measures Act) to provide access to flexible paid parental leave (flexible PPL) days.

From 26 March 2023, amendments were made to the PPL Act by the Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Act 2023 (Cth) (PPL Improvements for Families Act) to make payment more accessible, flexible and gender neutral.

References in this guidance note are to provisions of the PPL Act consolidated as in force on 26 March 2023.