Parental Leave Pay is a taxable payment.
It may affect your tax obligations, including:
- child support
- HECS liabilities
- Medicare Levy Surcharge
- public housing rent
- low income or other health care cards, or other associated concessions, and
- pensioner and beneficiary tax offsets
Parental Leave Pay also affects the following payments and services.
Family assistance payments
You can receive Family Tax Benefit (FTB) Part A during your Paid Parental Leave period if you’re eligible for it. However, you won’t receive Newborn Upfront Payment and Newborn Supplement if you receive Parental Leave Pay unless you have twins or a multiple birth.
You and your partner can’t receive FTB Part B during your Paid Parental Leave period. However, you may receive it at the end of your Paid Parental Leave period, if eligible.
Parental Leave Pay and Dad and Partner Pay count as income in calculating family assistance payments. This includes FTB and Child Care Subsidy. You should include any Parental Leave Pay and Dad and Partner Pay payments you expect to receive in your family income estimate.
Income support payments
Parental Leave Pay is counted as income when we consider your eligibility for income support payments. This means you could get a reduced rate of income support while you’re receiving Parental Leave Pay. In some cases, you may no longer be eligible for an income support payment.
Read more about how Paid Parental Leave scheme payments are counted as income.
Child support payments
Parental Leave Pay is treated as income for child support purposes.
How Parental Leave Pay affects your leave from work
The Paid Parental Leave scheme provides you with a parental leave payment but doesn’t give you an entitlement to leave from work.
It’s important to organise your leave from work with your employer. You should try to do this at least 10 weeks before you intend to take leave.
If you’re eligible, you can receive Parental Leave Pay as well as any of your existing employer provided paid or unpaid leave.
You can take Parental Leave Pay before, during or after any paid or unpaid employer funded leave. This includes maternity or parental leave, annual leave or long service leave.
If your employer currently provides paid maternity or parental leave through an industrial agreement or law, they can’t withdraw your entitlement to that leave while that agreement or law is in effect. The scheme doesn’t change any existing employer provided leave entitlements.
The Supporting Working Parents website provides information about your rights in the workplace while pregnant, during parental leave and when you return to the workplace.