From 1 January 2013, the Federal Government’s Paid Parental Leave scheme was extended to provide a new “Dad and Partner Pay” in addition to the existing Parental Leave Pay (which provides eligible working parents with government-funded pay when they take time off from work to care for a newborn or recently adopted child). The “Dad and Partner Pay” provides eligible working dads or partners with up to two weeks’ pay at the rate of the Federal minimum wage (which is currently $606.40 per week gross) for children born or adopted from 1 January 2013.  

Lessons for Employers: Now is a good time for employers to review their parental leave policies, particularly for organisations that provide voluntary paid parental leave above and beyond the government-funded paid parental leave. Those organisations should use this opportunity to consider the relevant “top up” amount and potentially introduce changes to set-off amounts the employee receives from the government.