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QTPA Member Alert | Changes to the Government Funded “Dad and Partner Pay (19/10/2012)

Changes to the Government Funded “Dad and Partner Pay

Legislation has been passed by Parliament and is now operative, amending the Paid Parental Leave Act 2010 and Fair Work Act 2009 to address various issues relating to parental leave.

The Paid Parental Leave Act 2010 has been amended to introduce Government funded ‘Dad and Partner Pay’ for eligible fathers and partners who are caring for a child born or adopted after 1 January 2013.

The Fair Work Act 2009 has been amended to insert provisions relating to: ‘Keeping in Touch Days’; new employer obligations regarding ‘replacement employees’; the flexibility to commence unpaid parental leave up to 6 weeks prior to the expected date of birth; and the cancellation of unpaid parental leave in circumstances of stillbirth or the death of the child.

Dad and Partner Pay

Overview

The Paid Parental Leave Act 2010 (PPL Act) has been amended to expand the Government’s Paid Parental Leave (PPL) Scheme to include Dad and Partner Pay. Key features of Dad and Partner Pay include:

  • It is one-off payment made at the level of the
  • National Minimum Wage (currently $606 per week) for a maximum period of 2 weeks.
  • The payment is Government funded.
  • Unlike the PPL Scheme (where employers have an obligation to pass on the Government’s payments to eligible employees) Dad and Partner Pay is paid directly to the employee by the Department of Human Services.
  • To be eligible, the father or partner must be on a period of unpaid leave and must not work during the period. If an employee is at work, or on paid annual leave, paid personal/carer’s leave, paid long service leave, or paid leave under an employer funded paid parental scheme, the employee is not eligible for Dad and Partner Pay.
  • The father or partner must be caring for the child during the period.
  • The father or partner can take the unpaid leave, and hence qualify for Dad and Partner Pay, any time from the expected or actual date of birth, and the child’s first birthday.
  • Dad and Partner Pay only applies to children born or adopted after 1 January 2013.
  • Eligible persons are able to make claims from 1 October 2012.

Who is eligible?

The following people can make a claim for Dad and Partner Pay:

  • The biological father of the child;
  • The partner (including same-sex partner) of the child’s birth mother;
  • An adoptive parent of the child; and
  • A person who satisfies circumstances prescribed by the PPL Rules.
  • To be eligible for Dad and Partner Pay, the person must initially satisfy:
  • The ‘work test’. Under the ‘work test’ a person must have worked continuously (either on a full-time, part-time or casual basis) for one or more employers for at least 10 of the 13 months prior to the birth or adoption of the child and worked for at least 330 hours in that 10 month period (around one day a week). The person must not have had more than an eight week break between working days;
  • The ‘income test’ (the person’s income must be less than $150,000, to be indexed after 30 June 2014); and
  • The Australian residency test (the person must be an Australian resident or be in a special class of visa holder).
  • In addition, during the period of Dad and Partner Pay, the person:
  • Must not be working;
  • Must be on a period of unpaid leave; and
  • Must be caring for the child.
  • A person will not be eligible for Dad and Partner Pay if the person:
  • Is on a period of paid leave, such as personal/carers leave, annual leave, long service leave, or company funded parental leave, at the same time as receiving Dad and Partner Pay; and/or
  • Performs one hour or more of paid work per day during the relevant period other than for the purpose of performing work for a business that the person carries on and that consists of overseeing the business or is an occasional administrative task.

Who is responsible for making the payment?

Dad and Partner Pay is paid directly to eligible employees by the Department of Human Services. Employers are not responsible for passing on the payment.

Are employers required to pay superannuation on Dad and Partner Pay?

Employers are not required to pay superannuation on the Dad and Partner Pay payments.

How does Dad and Partner Pay impact on company paid parental leave policies and schemes?

Employees must be on a period of unpaid leave to be entitled to receive Dad and Partner Pay. Accordingly, if the employee is being paid for a period of leave under a company paid parental leave scheme or policy, the employee is not eligible for Dad and Partner Pay for that period.

For further advice or information please go to: http://www.humanservices.gov.au/customer/services/centrelink/dad-and-partner-pay

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