Claiming and managing Flexible Paid Parental Leave (PPL) days for children born or entering care before 1 July 2023 007-20030334

Parental Leave Pay (PPL) is a payment of up to 18 weeks (90 payable days), made up of:

• a continuous PPL period of up to 12 weeks, plus
• 30 Flexible PPL days

Customers will be eligible for Flexible PPL if they have met the eligibility requirements to receive the PPL period. Eligibility for Parental Leave Pay (PPL) as a primary claimant for children born or entering care before 1 July 2023.

Exception: Customers that are not eligible for payment of the PPL period for any of the following reasons will be eligible for up to 30 Flexible PPL days:

• primary claimants that are not eligible for the PPL period due to returning to work between the child’s date of birth/entry into care and the PPL period start date
• primary claimants that are not eligible for the PPL period due to claiming PPL after they have returned to work
• primary claimants that are not eligible for a PPL period due to transferring it to a secondary claimant
• claimants that are not eligible for the PPL period due to losing their Newly Arrived Resident’s Waiting Period (NARWP) exemption between the child’s date of birth/entry into care and the PPL period start date

Once a customer’s eligibility is determined, they will have a balance of:

• up to 30 Flexible PPL days, if they are the primary claimant
• up to the number of Flexible PPL days the primary claimant has given permission for another person to claim, if they are a secondary claimant

If a customer claims a Flexible PPL day and it is later rejected or withdrawn, it is returned to their unclaimed balance. It will be available for the customer to claim on an alternate day.

Any Flexible PPL days not claimed before the child’s second birthday/anniversary of adoption will be lost.

Customers are assessed for both components in their initial claim for PPL. They do not need to lodge a separate claim to be assessed for Flexible PPL.

However before a Flexible PPL day can be paid, the customer must tell Services Australia when they want to receive it. They can do this in the initial claim or at a later time.

If a customer does not claim all of their Flexible PPL days in their initial claim, they have up to 2 years after their child’s birth or adoption to claim the remaining days, they can also make changes to their claimed Flexible PPL days during this time.

Customers can do this online, by phone, or in person, and do not need to complete a new claim for PPL.

To be eligible to get Flexible PPL on a day nominated by the customer, the customer must, on the nominated date:

• have a PPL child born or entered care before 1 July 2023
• be the primary carer of the PPL child
• not be working (they can be on paid or unpaid leave)
  Note: exemptions apply for work performed for permissible purpose and Keeping in Touch (KIT) days. See Parental Leave Pay (PPL) customer, for a child born before 1 July 2023, returns to work
• meet Australian residence requirements, and
• have completed the Flexible PPL declaration

Additionally, customers cannot get Flexible PPL on a date that:

• they or another person are being paid PPL for the same child
• they are receiving or have been paid Dad and Partner Pay (DAP) for the child
• is before or during their or their partners PPL period (even if they are ineligible for the PPL period e.g. returned to work during the PPL period). The exception are customers who have a PPL period shortened due to a reason of C12 (12 months passed since DOB/DOC) as the PPL period end date is recognised
• is before the child’s date of birth/adoption
• is after the child’s second birthday/anniversary of adoption

In most cases, customers cannot nominate dates that are more than 42 days in the past. Exceptions apply for customers that:

• in limited circumstances (such as to correct an unfavourable decision that has been reviewed)
• have claimed a Flexible PPL day within the required timeframe, however the claim/ activity was not finalised in time

When claiming a Flexible PPL day the customer must declare via the Flexible PPL Declaration that they met or will meet the eligibility requirements on the claimed date. The declaration is located in the:

• PPL claim
• PPL circumstances Guided Procedure in Customer First
• PPL Change of Circumstances workflow in Process Direct
• Parental Leave Pay Circumstances online service

The Resources page contains the declaration text.

Before the payment is generated, the customer’s residence and primary care status is checked. If the customer has:

• asked to get Flexible PPL on a date they do not meet residency or care requirements, the day will be rejected
• advised they do not meet residency, or care requirements and have already been paid Flexible PPL for this day, it will be raised as an overpayment

When a day is rejected, it:

• is returned to the balance of unclaimed days, and
• can be claimed for another day within 2 years of the child’s birth or adoption

The Resources page contains a list of the Flexible PPL day level rejection codes.

Customers need to choose how and when they want to be paid their Flexible PPL days. Flexible PPL days can be:

• connected to the PPL period, as a block of up to 6 weeks (30 days). This will give them a continuous block of PPL of up to 18 weeks. The system will automatically allocate dates for these days based on the end of their PPL period, and will be paid for weekdays only
• not connected to the PPL period, paid separately at any time after the PPL period and up to the PPL child’s second birthday / anniversary of adoption. The customer must select the dates they want to get these days and can be paid on weekdays or weekend days
• given to another person to claim. Primary claimants can give permission for another person to claim some or all of their Flexible PPL days (such as their partner or the child’s other parent). To receive these days, the other person (secondary claimant ) will need to:
• claim,
• meet eligibility criteria, and
• choose how and when they want to receive them

When claiming Flexible PPL days, customers need to tell Services Australia:

• how many Flexible PPL days they want to connect to their PPL period (before the PPL period commences)
• the dates for some or all of the Flexible PPL days that are to be paid separately when they are not connected to the end of the PPL period
• if they want to:
• save some Flexible PPL days to claim at a later date
• give another person permission to claim some or all of their Flexible PPL days

Customers can choose to connect some or all of their Flexible PPL days to the end of their 12 week PPL period. This will give them their PPL as a continuous block of up to 18 weeks).

Connected Flexible PPL days will be paid on the weekdays immediately following the last day of their PPL period. Customers:

• are not required to nominate specific dates for these days. They will be determined based on the customer’s PPL period end date
• only need to nominate how many days they wish to connect to their PPL period

Connected Flexible PPL days will be delivered in the same way as their PPL period.

Exception: The PPL employer paymaster role automatically ceases 52 weeks after the child’s date of birth/adoption. If the number of connected Flexible PPL days results in the continuous block of PPL extending beyond this date, the Flexible PPL days payable after this date will be delivered by Services Australia. The Resources page contains an example.

Customers can change the number of connected Flexible PPL days connected to their PPL period up to the day before their PPL period start date. They can do this by:

• using the Parental Leave Pay Circumstances online service,
• using the Flexible Parental Leave Pay Express Plus mobile application or
• contacting Services Australia

Once the customer’s PPL period has commenced, they cannot increase the number of Flexible PPL days connected to their PPL period. However, they can decrease their number of connected days to the end of the PPL period to the date of notification. Any connected days prior to the date of notification cannot be withdrawn.

Connected Flexible PPL days will be paid after the PPL period as an unbroken continuous block.

The continuous block of PPL is broken if the customer:

• loses eligibility for PPL (for example they return to work), or
• claims a Flexible PPL day that is on a Saturday or Sunday between 2 connected Flexible PPL days. If this happens the continuous block of PPL will be broken. The claimed days will not be changed, and will still be paid for the days nominated by the customer. However as they are no longer connected they will be delivered by Services Australia

Impact of return to work on connected Flexible PPL days

If a customer returns to work before the end of the PPL period or connected Flexible PPL days, all connected Flexible PPL days after the return to work date will be reassessed. These days will be rejected or withdrawn and returned to the customer’s balance of unclaimed days. See Parental Leave Pay (PPL) customer, for a child born before 1 July 2023, returns to work.

The Resources page contains examples.

Flexible PPL days that are not connected to the PPL period are paid on dates selected by the customer and are delivered by Services Australia. These can be taken as single days or in blocks.

Customers can select dates for these Flexible days when they claim PPL or later by:

• using the Parental Leave Pay Circumstances online service
• using the Flexible Parental Leave Pay Express Plus mobile application, or
• contacting Services Australia

Flexible PPL days that are not connected to the PPL period can be paid for weekdays and/or weekends.

Customers have until the child’s second birthday or second anniversary of adoption to claim and receive their Flexible PPL days.

Primary claimants can:

• choose to give permission for another person to claim some or all of their Flexible PPL days. This can be done in the initial claim for PPL or at a later time
• remove permission at any point before another person has claimed the Flexible PPL days
• give and remove permission for another person to claim their Flexible PPL days by:
• using the Parental Leave Pay Circumstances online service
• using the Flexible Parental Leave Pay Express Plus mobile application, or
• contacting Services Australia

Before the other person can receive any Flexible PPL days given to them, they need to claim and be eligible for PPL as a secondary claimant. See Eligibility for Parental Leave Pay (PPL) as a secondary or tertiary claimant for children born or entering care before 1 July 2023.

If the secondary claimant has nominated Flexible PPL days:

• in the future, and they no longer wish to claim them, they can withdraw the nominated days. The primary claimant can then remove permission for the secondary claimant to claim these days
• given to them to claim the days will appear on the primary claimants record as available in the ‘unclaimed Flexible PPL days by secondary/s’ until the secondary claimant has claimed them

Multiple secondary claimants can claim Flexible PPL days for a child (for example, the partner of the primary claimant and the child’s other parent) up to the maximum number of days that the primary claimant has given permission to be claimed. If multiple secondary claimants are linked to the child’s record, the primary claimant cannot specify whom they are granting permission to.

See the Resources page for examples.

Customers can notify a change of circumstances, this includes:

• returning to work or working on a Flexible PPL day
• recording a termination/resignation from employment
• change in primary care arrangements (customer only)
• not residentially qualified on a Flexible PPL day

Also see Customer notifies a change of circumstances for Parental Leave Pay (PPL).

Employers can notify a change in circumstances for a customer’s PPL period and connected Flexible PPL days. See Employer notifies a change in circumstances for Parental Leave Pay (PPL).

An Interaction record/activity can generate when:

• a customer updates their circumstances online but the update is unsuccessful
• a customer accesses the online service and no updates are made but it is submitted by the customer
• a Service Officer starts a PPL Change of Circumstance and doesn’t complete the change

To check for any outstanding interaction records:

In Customer First:

• check the Customer Summary screen in Customer First
• scroll to the Activities tab/Interaction history tab to make sure all incomplete/outstanding work is completed

If a PPL circumstance (Guided Procedure) is started and not complete, the activity often updates to ‘in process’. To continue to action the Change of Circumstances (CoC) interaction activity staff need to change the activity back to ‘in draft’ to enable updates, and finalise the activity.

In Process Direct:

• Select Transactions while in the customer’s record
• Ensure all transactions with status ‘For Manual Action, ‘In Progress’ or ‘For Customer Action’ related to PPL are actioned

If a PPL Change of Circumstances workflow is started and not finalised a Generic Change of Circumstances - Paid Parental Leave Circumstances transaction with status ‘For Manual Action’ will be displayed. The transaction should be cancelled if not required. Otherwise run the PPL Change of Circumstances workflow. The Transaction will display for selection and any provisional data previously entered will be available. Select ‘Continue’ to action and finalise the transaction.

If a PPL change of circumstance activity is started and not complete, the activity often updates to ‘in process’. To continue to action the Change of Circumstances interaction activity staff need to change the activity back to ‘in draft’ to enable updates and finalise the activity.

If there are any Flexible PPL days that have not been claimed for a child:

• a myGov message will be sent to the customer 18 months after the child’s date of birth/adoption, and
• the customer will be presented with a task in their Centrelink online account to claim the remaining Flexible PPL days

Customers have until the day before the child’s second birthday or second anniversary of adoption to claim and receive all their Flexible PPL days.

Customers (and/or their partners) may incur an overpayment if:

• their PPL period or Flexible PPL day/s are paid for a period in the past, and
• they are receiving an income support payment or have been paid Family Tax Benefit (FTB) Part B

Customers can minimise the risk and amount of an overpayment of FTB or ISP by choosing dates in the future for their Flexible PPL days.

Customer or partner receives an income support payment (ISP)

PPL (including Flexible PPL days) is treated as ordinary income for determining eligibility and calculating the rate of ISP.

Customers may incur an overpayment of their ISP, if paid PPL for the same period. This includes:

• their PPL period, and/or
• Flexible PPL day/s

Customers can minimise the risk of an overpayment by:

• choosing a start date for their PPL period in the future, and/or
• nominating future dates for their Flexible PPL days to be paid

PPL arrears generated for a past period are offset against income support payments, if they:

• occur in the same activity, and
• are for the same period the customer received PPL and the ISP payment

See Parental Leave Pay (PPL) debt raising, debt offsetting and recovery

Customer or partner receives family assistance

FTB Part B is not payable on days that the customer or their partner receives PPL, including Flexible PPL days.

If a customer advises of working on a Flexible PPL day and the day is withdrawn/rejected for a day in the past, the customer/partner may be entitled to FTB B on that day.

Customers should include PPL as part of their estimated taxable income used for family assistance payments.

See Helping families provide a reasonable annual income estimate for family assistance payments.

Child Support deductions

Child support deductions (for example, payments of child support to another person) can be made from PPL, including Flexible PPL days for future days. Flexible PPL days that are not connected to the PPL period or are paid in arrears are not subject to child support payer deductions. See Child support deductions from income support payments.

JobKeeper Payment

The JobKeeper scheme ended on 28 March 2021

Customers could not receive JobKeeper Payment for the same period they received PPL. Note: JobKeeper Payment did not preclude PPL entitlement. However, PPL did preclude entitlement to JobKeeper Payment for the same period.

It is the customer’s responsibility to advise their employer the dates they have claimed PPL, including their PPL period and Flexible PPL days. If a customer has queries or questions about JobKeeper payment tell them to discuss with their employer.

The PPL benefit status is on the benefit status line and the overall claim status is displayed on the PPL Calculation Summary (P1CS) screen.

If a customer has multiple open (OPN) claims (for example, if they have a newborn or newly adopted child and have not finished receiving Flexible PPL for an older child), the benefit status line will reflect the most recent claim for PPL. Both claims will display on the P1CS screen.

In relation to Flexible PPL days, a customer’s PPL benefit status will be:

• Assessed (ASS), when their claim has been preliminarily assessed as eligible and payment has not commenced (for example, due to employer acceptance, or awaiting PPL period start date or first Flexible PPL day)
• Current (CUR), on a day they are eligible for Flexible PPL
• Current zero rate (CZR), when payment has commenced and it is not a day that is during their PPL period, connected Flexible PPL days or on a day they are eligible for Flexible PPL

Once the customer has claimed and been paid their maximum entitlement to Flexible PPL days, their PPL:

• will cancel (CAN/EOP)
• claim status will remain OPN until 2 years after the child’s date of birth or adoption. This allows them to notify a change in circumstances for their Flexible PPL days

The claim status will change to closed (CLO) 2 years after the child’s date of birth or adoption. If the customer has not claimed all unclaimed Flexible PPL days, the benefit status will change on the child’s 2nd birthday/anniversary into care, to CAN-C24. A letter will be sent to the customer advising of the outcome.

The PPL Calculation Summary (P1CS) screen displays separate component level statuses for the PPL period and any connected Flexible PPL days, and individual Flexible PPL days.

A Flexible PPL day is rejected when it is determined that they are not eligible for payment on the nominated day. This may be at the point of claim or a reassessment due to a change in circumstances.

If a day is rejected within 2 years of the child’s birth or adoption it will be available in the customer’s unclaimed Flexible PPL days balance. The Resources contains a full list of Flexible PPL component level rejection codes and reasons.

Withholdings for debt recovery can be made from PPL (including Flexible PPL days). The standard withholding rate is 100%.

PPL arrears, including Flexible PPL days can be used to offset PPL and some income support payment (ISP) overpayments that occur in the same activity.

If a standard withholding arrangement is in place, it will end after the PPL period and any connected Flexible PPL days. Customers can request a non-standard withholding arrangement for any Flexible PPL days that are not connected to their PPL period. See Parental Leave Pay (PPL) debt raising, debt offsetting and recovery.

For customers with a NARWP exemption due to receiving a social security benefit, social security pension or Farm Household Allowance (FHA), the exemption is assessed using their payment status on the day before:

• their PPL period start date, for their PPL period and any connected Flexible PPL days
• the claimed Flexible PPL day or block of days, for any Flexible PPL days that are not connected to the PPL period

If the customer is not in receipt of a social security benefit, social security pension or Farm Household Allowance (FHA) on this day, they will not be eligible for a NARWP exemption for the applicable component of PPL.

It is recommended that customers with a NARWP exemption due to receiving an eligible payment connect all of their Flexible PPL days to the end of their PPL period. This will prevent them from losing eligibility if their exemption ends before they have claimed all of their Flexible PPL days.

Customers need to receive an income support payment for each day from the child’s date of birth or entry into care until the day immediately before their PPL period start date for this exemption to apply.

If there is a retrospective change to the customer’s income support entitlement, that is between the child’s date of birth and before the PPL period start date, the customer may:

• lose entitlement to PPL, and
• an overpayment may occur, or
• their PPL period could be rejected