Role of the employer in Parental Leave Pay (PPL) 007-09010030

It is mandatory for employers to provide PPL to their eligible employees.

Employers are required to deliver PPL:

• for children born or adopted before 1 July 2023, the PPL period, plus any Flexible PPL days that are connected to it
• for children born or adopted on or after 1 July 2023, where the customer has nominated in their claim and an employer determination was made for:
• a continuous pattern of at least 8 weeks that falls before the child’s first birth date/anniversary of care, and
• the pattern consists of 5 PPL days per week for every weekday (that is, Monday to Friday only and does not include weekends)

If the customer is not an eligible employee, or if PPL cannot be delivered by the employer, for example, if the employer is not required to have an Australian Business Number (ABN) it will be delivered by Services Australia.

Once an employer determination is in place, it should continue until the date of the gap, or weekend day, or the end of the continuous PPL days (even if the customer reduces the period to less than 8 weeks).

If the employee is receiving an income support payment (ISP) at the time of the initial PPL claim determination (including where the ISP will cancel due to PPL payments) Services Australia will be the default PPL paymaster. No employer determination will be made.

Employees already in receipt of PPL who have had an employer determination made (either the PPL payment has commenced or has been scheduled to commence) and are granted an ISP will have the paymaster role automatically transferred from the employer to Services Australia. The date of effect for the transfer will be the PPL date paid to + 1 day to ensure there is no overpayment raised against the employer.

Once Services Australia is appointed as the paymaster, future reassessments will not change the paymaster role, unless:

• the employee makes a subsequent request to change the paymaster role, and
• the employee is no longer receiving an ISP

This automatic paymaster role transfer does not apply where an ISP is granted to the PPL customer's partner. It only applies if the PPL customer themselves are granted an ISP.

Services Australia will provide PPL funds to the employer who will provide PPL to the employee through their existing payroll cycle.

For children that were born or entered care on or after 1 July 2020 and before 1 July 2023:

• PPL will include up to 30 Flexible PPL days
• Employers will only be responsible for delivering Flexible PPL days that are:
• connected to the PPL period, and
• scheduled on a day that is before the child’s first birthday/anniversary of entry into care
• If there is a break in eligibility during the PPL period or connected Flexible PPL days:
• the employer role will cease, and
• any remaining Flexible PPL days will be delivered by Services Australia

For children born or adopted on or after 1 July 2023, employers will provide PPL where:

• the customer nominates an 8 week (40 consecutive weekdays) minimum block of continuous PPL days (Monday to Friday only), that falls before the child turns one/anniversary of care. Note: the continuous period can start on any week day
• the block of PPL days are the customers first paid PPL days since birth/entry to care

Any subsequent PPL days, (including periods of 8 weeks or longer) separated from the first period, will be paid by Services Australia.

Note: where an employer determination has been made for a pre-birth PPL claim and customer adds one or more days before the employer paid period before PPL becomes current:

• the initial employer paid period will continue to be paid by the employer, and
• the new days will be paid by Services Australia

The employer determination will be revoked if the customer (employee):

• removes a day from the continuous period to create a gap (including where they are ineligible on a day), or
• adds a weekend day during the continuous period

The employer must undertake the following:

• provide details to advance the employer PPL funding amounts
• withhold tax from the PPL under the usual PAYG withholding arrangements and include PPL in the total amounts on the employee's annual or part-year payment summary (statements produced and given to the employee for tax purposes)
• provide the employee with access to a record of their PPL by providing payslips
• keep written financial records of the receipt of PPL funds received from Services Australia and the PPL provided to an employee
• notify their employee and employer change in circumstances