Now that parliament has passed Australia’s first ever paid parental leave (PPL) scheme, it is time to have a look at what it offers workers.

Now that parliament has passed Australia’s first ever paid parental leave (PPL) scheme, it is time to have a look at what it offers workers.

Taking time away from work for a new baby is a common part of working life. Paid Parental Leave will help parents spend more time at home with a new baby, and help employers keep skilled and valuable staff.

The PPL will commence on January 1, 2011 and will offer 18 weeks paid leave at the federal minimum wage ($569.90 per week or about $15 per hour).  This will be taxable.  The PPL will be funded 100% by the federal government, with an estimated net cost of $731m over five years.

The scheme is available to eligible working parents of children born or adopted on or after January 1, 2011 and can be taken at any time within the first year after birth.

Expectant mums must earn no more than $150,000 per year to qualify and work at least 330 hours in 10 of the 13 months before their due date (around one day of paid work a week).

Families electing to participate in the scheme will not receive the Baby Bonus (except in multiple birth cases) or Family Tax Benefit Part B during the 18 week PPL period.

Families will have the option of signing the benefit over to stay-at-home dads if mothers want to return to work.

About 148,000 Australians will be able to claim the benefit every year.

While the PPL scheme has drawn praise from many union groups, some small businesses fear it will place an unfair burden on them – especially as businesses will need to act as paymaster for the PPL scheme, not the government.

Many believe that administering the scheme will place yet another burden on small business and may even result in potential discrimination against women.

Another negative is that the PPL scheme does not include superannuation payments, and this is bad news for women who are already disadvantaged greatly compared to men in this area because of their broken work patterns mainly due to having families.

Businesses say that as they must pay super to all employees, so the government should also pay super to those receiving the PPL.

Parents and employers can find out more about the scheme, its eligibility requirements and how it will operate at the Family Assistance Office website.