1.2 PPL Scheme - Description

Introduction

This chapter provides an overview of the PPL scheme. The brief descriptions draw together key elements of the scheme including its objectives, eligibility to receive PLP or DAPP, and the impact of PLP and DAPP on certain other entitlements.

The PPL scheme provides for:

  • PLP to be paid to a person for a particular period (the PPL period (1.1.P.200). The maximum PPL period (1.1.M.20) for which payment may be made is 18 weeks. PLP is payable at the rate of the NMW.
  • DAPP to be paid to a person for a particular period (the DAPP period (1.1.D.30). The maximum DAPP period (1.1.M.10) for which payment may be made is 2 weeks. DAPP is payable at the rate of the NMW.
  • Claims for PLP or DAPP can be lodged up to 97 days (3 months) before the expected DOB or adoption.

Payments under the PPL scheme can start from the child's DOB or adoption, or a later date. The payment must be fully paid within 52 weeks of the DOB or adoption, commencing no earlier than the birth or placement of the child. To receive the full amount of PLP, both the claim needs to be made, and the start date needs to be, within 34 weeks of the DOB or adoption. To receive the full amount of DAPP, the claim needs to be made within 52 weeks of the DOB or adoption and the start date needs to be within 50 weeks of the DOB or adoption.

PLP and DAPP are calculated by reference to the NMW order and funded by the Australian Government.

The PPL scheme does not provide a leave entitlement and does not change existing employer-provided leave entitlements. PLP and DAPP complement parents' existing entitlements to employer-provided paid and unpaid leave, such as access to 12 months unpaid parental leave under the National Employment Standards (NES) for long-term employees. PLP can be taken before, after or at the same time as existing employer-provided paid or unpaid maternity or parental leave, or other employer-funded leave entitlements (such as annual leave or long service leave). DAPP can be taken at the same time as unpaid leave.

To be eligible for PLP or DAPP, a claimant must meet the scheme's:

In addition to meeting the scheme's work test, income test and residency test a PLP claimant must be:

  • the primary carer of a newborn or recently adopted child, and
  • on leave or not working from the child's DOB or entry to care until the end of the person's PPL period.

In addition to meeting the scheme's work test, income test and residency test a DAPP claimant must be:

  • caring for a child born or adopted on or after 1 January 2013, and
  • on unpaid leave or not working during the DAPP period.

A claimant can decide to return to work before the end of their PPL period or during their DAPP period, however their payment will be cancelled from the date they return to work as they will cease to be eligible for PLP or DAPP.

The scheme is available to full-time, part-time, casual, seasonal, contract, and self-employed workers.

In most cases PLP is provided by a person's employer, where the person:

  • has been an employee of the employer for 12 months or more prior to the DOB,
  • will be an employee of the employer for their PPL period,
  • is an Australian-based employee, and
  • expects to receive at least 8 weeks PLP.

In other cases Centrelink makes the payment of PLP directly to the parent.

DAPP will be provided to a claimant by Centrelink as soon as possible after the start of the DAPP period.

A person who receives PLP for a child will not be eligible for NBS for that child. In the case of a multiple birth, a person can receive PLP for one child and NBS for a second or subsequent child.

A person (or their partner if they are a member of a couple) who receives PLP for a stillborn child will not be eligible for SBP for that child. In the case of a multiple birth, a person can receive PLP for one child and SBP for a second or subsequent child.

DAPP and NBS or SBP can be received for the same child.

A person who receives PLP will not be entitled to FTB Part B during the person's PPL period, or the dependent spouse, child housekeeper and housekeeper tax offsets (except where the housekeeper is caring for a person receiving DSP).

In this chapter

This chapter contains the following sections:
Last reviewed: 1 July 2016