Budget changes to the Paid Parental Leave scheme: How will that affect employers?

The Government confirmed in last night's federal Budget that from 1 July 2016, an employee's eligibility for the government-funded Paid Parental Leave (PPL) scheme would be removed if the PPL payments they receive from their employer exceeds the amount available under the government scheme.

In the lead up to the release of the Budget, Treasurer Joe Hockey vowed to stop employees receiving government-funded PPL payments if they would receive the same or a greater benefit from their employer. The Treasurer referred to this process as 'double dipping', in that some employees are currently able to receive PPL payments from both employer and government schemes.¹

In this In Brief, we examine this proposed change and its implications for employers – particularly those employers with their own PPL schemes in place.