The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

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 and the impact on certain other entitlements.

The PPL scheme provides for PLP, a Government-funded payment to support eligible parents and other carers to take time off work after a birth or adoption.

The length of the PLP entitlement varies depending on the date the child was born or adopted. The PPL scheme provides for PLP to be paid for:

  • up to 20 weeks or 100 payable days for children born or adopted on or after 1 July 2023
  • up to 22 weeks or 110 payable days for children born or adopted on or after 1 July 2024
  • up to 24 weeks or 120 payable days for children born or adopted on or after 1 July 2025
  • up to 26 weeks or 130 payable days for children born or adopted on or after 1 July 2026.

For maximum entitlements for specific types of claimants see 2.9.

Claims for PLP can be lodged up to 97 days (3 months) before the expected DOB or adoption.

Payments under the PPL scheme can be made between the child's DOB or adoption, and the day before the child's second birthday, or second anniversary of entry to care.

The payment rate for PLP is 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 complements 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).

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

  • work test (2.2)
  • income test (2.3), and
  • residency test (2.4).

In addition, a claimant for PLP on a flexible PPL day must generally be:

  • caring for a newborn or recently adopted child, and
  • not performing more than one hour of paid work on the day.

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

PLP is usually 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 or adoption of the child
  • has a continuous flexible period (1.1.C.145) and is likely to be an employee of the employer for that period
  • is an Australian-based employee
  • there are no flexible PPL days prior to the person’s continuous flexible period for which the person is payable or initially eligible, and
  • expects to receive at least 40 consecutive week days of PLP from their employer.

In other cases, and for flexible PPL days that are not part of the person's continuous flexible period, Centrelink makes the payment of PLP directly to the parent.

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.

A person who receives PLP will not be entitled to FTB Part B on payable flexible PPL days.

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