December 2013 Newsletter 

In this edition:

Welcome

Christmas greetings and holiday trading hours

Paid Parental Leave Scheme and employer obligations

Identifying the difference between contractors and employees

Who are you leaving your super to when you die? - Reversionary versus non-reversionary pensions

The Paid Parental Leave Scheme provides government funded leave to natural or adoptive parents who have been working and who have a baby or adopt. Full-time, part-time, casual, seasonal, contract and self-employed workers may be eligible.
The scheme offers the following:

• Parental Leave Pay' at the National minimum wage for a continuous 18 week period or 'Dad and Partner pay' at the National minimum wage for two weeks;
• From 1 July 2013 the national minimum wage is $622.10 per week before tax;
• Payments are taxed in the hands of the parent (employee) and no superannuation is paid on this amount;
• Paid parental leave is not a "leave" entitlement, and can be received along with or separately to other employer-provided leave entitlements (including paid maternity leave, which may be offered under some employment contracts or those contained under a workplace award); and
• To receive payments under the scheme, the employee must not be working from the time they become their child's primary carer until the end of their Paid Parental Leave period.

As an employer, you must provide Parental Leave Pay to an eligible employee who:

• has a newborn or recently adopted child;
• has worked for you for at least 12 months before the expected date of birth or adoption;
• will be your employee until at least the end of their Paid Parental Leave period;
• is Australian-based, and
• is expected to receive at least eight weeks of Parental Leave Pay.

The leave scheme is administered and paid for by the Family Assistance Office, and queries can be directed to them. 

As an employer you play an important role in the Paid Parental Leave scheme. As an employer you handle the 'Parental Leave Pay' payments to the parent but are not expected to make any payments until the Family Assistance Office sends the money. 

Steps involved in providing Parental Leave Pay
To prepare for your role in providing government-funded Parental Leave Pay to eligible employees follow the following steps as outlined by the Family Assistance Office website:

• Register with Centrelink Business Online Services for the Paid Parental Leave scheme. When you register for the scheme, you are automatically registered to be able to provide Employment Separation Certificates
• Opt in to provide Parental Leave Pay to eligible employees
• Discuss your employee's leave intentions and workplace entitlements with them
• Employee lodges a claim (this can be up to three months before the expected date of the birth or adoption)
• The Family Assistance Office decide whether the employee is eligible
• The Family Assistance Office will decide whether you are required to provide Parental Leave Pay, and they will notify you of this decision
• You then need to either accept the decision to provide Parental Leave Pay to your employee or seek a review of the decision
• If you accept the decision, you need to provide or confirm with the Family Assistance Office your pay-cycle and bank-account details
• You will receive the funds from the Family Assistance Office before you need to provide Parental Leave Pay to your employee

'Dad and Partner Pay' is a different payment that is provided directly to the employee by the Family Assistance Office. Employers do not play a role in providing Dad and Partner Pay.

The Family Assistance Office has more information for employers. See also Family Assistance Office's 'tool kit' for employers and the fair work ombudsman's employer and employee 'checklists'.

Contact our offices if you require any further assistance.