Getting your payment

In many cases your employer will deliver your Parental Leave Pay for a child born or adopted from 1 July 2023 to you. Sometimes, we’ll pay you directly.

When your employer will pay you

If you meet all of the following criteria, your employer will pay your Parental Leave Pay in line with your regular pay cycle:

  • you’ve worked for them for at least one year before the birth or adoption of your child
  • they’re Australian based
  • you’ve requested a block of payment of at least 8 weeks excluding Saturdays and Sundays
  • you’ll stay employed by them until at least the end of the block
  • the block is your first payment of Parental Leave Pay for the child
  • it’s within a year of the child’s birth or adoption
  • it doesn’t contain any weekends
  • it’s made up of consecutive weekdays with no breaks.

If you meet these criteria but your child was stillborn you can ask us to pay you instead.

If you don’t meet these criteria, your employer doesn’t have to pay your Parental Leave Pay. But they can in some cases if you both agree.

For this to happen, your employer will need to do both of the following:

  • register with us
  • opt in to provide Parental Leave Pay.

If your employer doesn’t do this before you submit your claim, they won’t be able to pay your Parental Leave Pay.

Your employer:

  • will withhold Pay As You Go tax (PAYG) at the usual rate
  • will deduct child support from your payment, if they’re required to do so
  • won’t need to make additional superannuation contributions, but can if they want to.

You can arrange for them to make any deductions if needed.

You can salary package, also known as salary sacrifice, some or all of your payment. Read more about salary sacrificing on the Australian Taxation Office website.

When we will pay you

We’ll pay you if any of the following apply:

  • you don’t have a job
  • your employer doesn’t pay your Parental Leave Pay
  • you’re self-employed
  • you get an income support payment from us
  • your child was stillborn and you request we pay you instead of your employer.

We will pay any Parental Leave Pay days not paid by your employer.

We’ll pay you into your bank account every 2 weeks, after the days you selected.

From your payment, all of the following will apply:

  • we’ll withhold Pay As You Go tax (PAYG)
  • we’ll deduct child support if we are required to do so
  • you can voluntarily ask us to deduct family assistance debts.

We don’t provide salary sacrifice.

Paying tax on your payment

Parental Leave Pay is a taxable payment. This means you pay tax on the amount you get and you must declare the income in your tax return.

We’ll withhold Pay As You Go tax (PAYG) at the rate of 15%, unless you ask for a different rate.

Depending on your total taxable income, this rate might not be enough to meet your tax obligations. If it’s not enough, you will need to pay additional tax at tax time. You can check the tax rate for your income on the Australian Taxation Office website.

You can increase the withholding rate to be in line with the tax rate for your expected income for the relevant financial year online using self service. Read more about how to deduct tax from your payment.

Page last updated: 1 July 2024.
QC 64495