- Provides up to 2 weeks of paid leave for eligible employees
- Eligibility depends on a number of things, including income tests, work tests and residency tests
- Paid at the rate equivalent to the National Minimum Wage (currently $772.55 per week)
- Generally won’t affect employer benefits you might also be entitled to during parental leave
- Usually paid to the biological father, partner of the birth mother, adoptive parent or partner of the adoptive parent or person caring for the child of a surrogacy arrangement
- Considered taxable income so it may affect other government benefits you are entitled to
The Federal Government funded Dad and Partner Pay Scheme provides eligible employees with up to 2 weeks of paid parental leave. The leave is paid at the rate of the National Minimum Wage.
To be eligible for the Paid Parental Leave Scheme you must:
- Be the the biological father, partner of the birth mother, adoptive parent or partner of the adoptive parent or person caring for the child of a surrogacy arrangement. In some circumstances the payment can be made to the partner of the biological father or partner of a new carer where care arrangements have changed, other than a foster care or permanent care arrangement
- Meet an income test – you earned $150,000 or less in the 2019/20 year or less than $151,350 in the 2020/21 year
- Meet a work test – you must have worked for 10 months in the 13 months before the birth or adoption of the child, you must have worked a minimum of 330 hours in those 10 months and you must not have had more than 12 weeks gap between work days (there are some exceptions to this requirement for pregnancy related illness and dangerous jobs). There is also an extended work test covering 20 months if your work has been affected by COVID-19.
- Meet the residency test – you must be living in Australia, you must be a citizen, permanent resident or hold certain special category or temporary visas
- Not be working during the Paid Parental Leave period
- Not be taking paid leave for the same period you receive Dad and Partner Pay
- Be caring for the child on each day you receive Dad and Partner Pay
You can get more details on eligibility from Services Australia.
How it works
The Dad and Partner Pay Scheme gives eligible employees with up to 2 weeks of paid parental leave. The payment is made directly to the eligible person. It is paid as one payment. PAYG tax is withheld from the payment at the rate of 15% unless you nominate a different rate when you make your claim.
How to make your claim
- Nominate a start date no later than 50 weeks after the date of the birth or adoption of the child
- Setup a mygov account if you don’t already have one
- Get your supporting documents ready
- Make your claim online in mygov
Things that might affect your claim
Payments under the Dad and Partner Pay Scheme are considered taxable income so they can affect anything else you receive, including other government benefits, that depend on your level of taxable income. This includes:
- child support payments
- HECS liability payments
- Medicare Levy Surcharge
- public housing rent
- low income and concessional health care cards
- pensioner and beneficiary tax offsets
- Family Assistance payments
- income support payments
You can get more details about the Dad and Partner Pay Scheme from Services Australia.
This summary has been prepared by MoneyBrilliant Pty Ltd (AFSL 492711). The information in this summary is of a factual nature only. We are not suggesting or recommending that you take any particular course of action in relation to any financial product or service. It does not take into account your personal circumstances or objectives. If you need financial advice or taxation advice you should seek advice from a licensed financial adviser or tax agent. You may also be able to access additional information from the websites of the Australian Securities and Investment Commission (ASIC) or the Australian Taxation Office.