The Government has committed $346.1 million over 5 years to an ‘Enhanced Paid Parental Leave’ scheme that combines currently separate payments for principal carers and for fathers and partners.
A table comparing the current provisions for Paid Parental Leave (PPL) and Dad and Partner Pay (DAPP) with the new changes that will come into effect from July 1, 2023.
| Current Scheme | New Scheme | |
| Duration of PPL | Up to 18 weeks’ pay at National Minimum Wage (NMW) | Up to 20 weeks’ pay at NMW |
| Duration of DAPP | Up to 2 weeks’ pay at NMW for eligible fathers/partners | DAPP will be merged with PPL and no longer exist separately |
| Payment processing | Employers process payments through their payroll | Same as current provisions |
| Timing of PPL payments | First 12 weeks in one continuous period, remaining 30 days can be taken flexibly within 24 months of birth or adoption date | Whole 20 weeks can be received flexibly in multiple blocks within 24 months of birth or adoption date |
| Eligibility | Eligibility assessed by Services Australia based on work, income, and other tests under the Paid Parental Leave Act 2010 (Cth) | Same as current provisions |
| Sharing of PPL days | Not allowed without approval from birth mother/first adoptive parent | Allowed with approval from birth mother/first adoptive parent |
| Reservation of PPL days | Not applicable | At least 2 weeks reserved for each partner if PPL is shared between them |
| Income limit | Individual income limit of $156,647 | Combined family income limit of $350,000 if individual limit is not met |
| Work test exceptions | Not applicable | Exceptions for family/domestic violence, serious medical condition, or natural disaster declared by Commonwealth or state/territory |
