Paternity leave is something all new fathers should take upon the birth or adoption of their child, giving them time to bond with their child and be there to care for their partner or spouse. New dads in Australia can apply for Dad and Partner Pay, giving them a set period of time to take off from work, while still getting paid.
But for some families, the roles could be reversed from the traditional, and a mother could go back to work sooner than the father. Alternatively, for same-sex couples, one new dad may choose to take more time off than the other. With the Australian Government offering Parental Leave Pay (PLP), as opposed to maternity leave pay, this is certainly possible.
So, how much paternity leave can Australian fathers take and how much parental leave can one take? Read on to find out.
In this paternity leave guide…
How much paternity leave am I entitled to?
- 2 weeks pay
- $812.45/week before tax
However, there are criteria you need to meet in order to be eligible for the payment. These criteria include:
- You must give care to a newborn or newly adopted child
- Meet the income test – this test will look at your previous financial statements. To satisfy the income test you must have an individual adjusted taxable income of either:
- $150,000 or less in the 2019-20 financial year
- $151,350 or less in the 2020-21 financial year
- $156,647 or less in the 2021-22 financial year
- Meet the work test requirements:
- Have worked for 10 of the 13 months before the date your Dad and Partner Pay period starts
- Worked a minimum of 330 hours in the 10-month period
- Not have a gap of more than 12 weeks between each work day in the 10-month period
- Not be working and not be taking paid leave during the Dad and Partner Pay period
- Have registered or applied to register your child’s birth with your state or territory birth registry, if they’re a newborn
Dad and Partner Pay will be paid in one instalment for the 2-week period, meaning you will receive a payment of $1,624.90 before tax. Tax will be withheld at a rate of 15%.
Some employers may offer to provide a top-up payment on top of your Dad and Partner Pay, which can make up the difference between the government payment you receive and your usual weekly wage. This is completely fine for your employer to do and doesn’t affect your eligibility.
How much paid parental leave do Australians get?
- 12 weeks (60 payable days), plus 30 day of flexible paid parental leave
- $812.45 per week, before tax
The Australian Government says “Eligible employees who are the primary carer of a newborn or newly adopted child get up to 18 weeks parental leave pay, PLP, (split over two separate periods), which is paid at the National Minimum Wage.”
With this wording, it could well be possible that a father can take 18 weeks of pay if they are to be the primary caregiver of the newborn or newly adopted child. However, in the majority of cases, it will be the mother who takes the 18 weeks, with the father taking 2 weeks.
Employees who take PLP can claim for 1 set period and 1 flexible period.
The first period of paid parental leave is a set period of 12 weeks, which must be taken within 12 months of the child being born or adopted.
Following this 12-week period, the flexible period of paid parental leave comes into effect. Flexible parental leave pay gives you up to 30 days of paid leave, which can be taken whenever you want, it’s down to you to negotiate with your employer.
The flexible parental leave period of 30 days must be taken within 24 months of the child being born or adopted.
How is parental leave pay paid?
The Australian Government will pay your employer, who will then pass the parental leave pay payments onto you. You are entitled to receive parental leave pay from both the Australian Government and your employer.
Your employer will withhold Pay As You Go tax at the usual rate of 15% and doesn’t have to make additional superannuation payments, but they are entitled to do so if they wish.
If you are self-employed or unemployed, your parental leave pay will be paid to you by Services Australia. Payments will be made every two weeks and PAYG tax will be deducted.
New proposal for paternity leave
The new Labor Government has put forward plans to increase the amount of paid parental leave for new dads to 20 weeks, over the current 2-week system. The new proposal is in response to the new working from home model being adopted by a large proportion of workers since the Covid global pandemic, and fathers expressing a greater desire to be more involved with their child within the first two years of its life.
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