Payability and delivery of Dad and Partner Pay (DAP) 007-05020040

Item

Example

1

DAP period start date

A child is born on 15 January 2015 and the customer claims 21 May 2015 with a nominated start date of 21 January 2015.

As the customer's nominated start date is after the child's actual date of birth, the DAP period start date will be 21 January 2015.

2

DAP eligibility ends during DAP period

A customer's DAP period commences on 18 February 2015 (nominated start date) and the customer returns to work 26 February 2015.

DAP eligibility ends the day the customer returns to work. The customer's DAP period is 18- 25 February 2015.

3

DAP interaction with Parental Leave Pay

A child is born on 12 October 2020. The customer claims PPL as a secondary claimant on 29 October 2020. As secondary claimant they have permission to claim 3 Flexible PPL days. They have claimed these for:

• 9 February 2021,
• 26 April 2021, and
• 18 December 2021

On 18 February 2021, the customer claims DAP for the same child. They nominate 1 February 2021 as their DAP period start date.

As the customer has claimed Flexible PPL on 9 February, their DAP period will end on 8 February 2021.

The customer should select a new DAP period start date which will allow their maximum DAP period to be paid. Otherwise, they can request the cancellation of their Flexible PPL day on 9 February. If this day is cancelled it will be returned to the unclaimed day balance and be available for the customer or the primary claimant to claim for another date.

See Claiming and managing Flexible Paid Parental Leave (PPL) days for children born or entering care before 1 July 2023.

Item

Question

1

Question: Can a Centrepay deduction be applied to DAP?

Answer: No, Centrepay deductions (all types) will not be deducted from DAP.

2

Question: Can deductions be taken from DAP?

Answer: Tax withholding will be the only deduction taken from DAP.

3

Question: Can Child Support deduct from DAP?

Answer: No, child support liabilities will not be deducted from DAP.

4

Question: Can DAP be paid weekly?

Answer: No, DAP is paid as a lump sum only.

5

Question: Can DAP be paid one week now, one week in a month's time?

Answer: No, the DAP period and the payment cannot be split.

6

Question: How will the rate of DAP be adjusted when the National Minimum Wage increases?

Answer: Generally the National Minimum Wage increases on 1 July each year. DAP is paid at the National Minimum Wage. As the rate of DAP is determined as a daily rate, all days within the DAP period after the increase would attract the higher rate.

7

Question: Will a DAP component be shown on the Tax Payment Summary (TXGS) screen for payment summary details for the customer?

Answer: Yes, DAP will display as a taxable payment on the TXGS screen and a payment summary will be issued to the customer.

Item

Question

1

Question: As DAP is taxable income will it be included as assessable income for Child Support purposes when calculating Child Support entitlements?

Answer: Yes, DAP is assessed as taxable income for the purposes of child support.

2

Question: Is DAP income included for Department of Housing purposes?

Answer: DAP is taxable income and is displayed on an Income Statement provided to the customer. The customer would need to confirm the effect of DAP income with their State/Territory Department of Housing.

3

Question: What are the portability provisions for DAP

Answer: DAP can continue for up to 56 weeks from the original date of departure for temporary absences overseas. See Family Tax Benefit (FTB), Child Care Subsidy (CCS) and Paid Parental Leave scheme customer/child going overseas.

4

Question: Can DAP be cancelled if the customer's whereabouts are unknown?

Answer: Yes, a customer's address details need to be advised to receive DAP.

5

Question: Does an employer paid top up of income during the DAP period affect the customer's DAP?

Answer: Employers may choose to pay an employee a top up payment to supplement their DAP payment. This top up may be paid as a bonus or deducted from the employee's leave balances.

For DAP this is not considered to be paid leave and does not affect DAP eligibility. If leave is paid for another purpose (such as annual leave or sick leave) on any day during the DAP period, the customer would not be eligible for DAP on that day.

6

Question: Why has the rate of income support payment reduced during the DAP period?

Answer: For children born or entering care on or after 1 October 2016, DAP is counted as ordinary income for calculating the rate of income support payments.

This means that if the customer (and/or their partners) receive an income support payment, the rate will reduce during the DAP entitlement period.

If the income support payment reduces to a zero rate due to DAP, the income support payments will cancel. In some circumstances, the customer's income support payment can be reassessed, while other customers may need to lodge a new claim if they wish to re test their eligibility for an income support payment.

If the DAP nominated start date is backdated to a date that falls within a period for which an income support payment has already been paid to the customer (and/or their partner), an income support payment overpayment will be raised.