Budget 2009 – Paid Parental Leave

By FutureNestEgg | May 14, 2009

Budget 2009 has a bright spot for would-be parents – From 2011, the primary carer will receive paid parental leave. To be eligible for the parental leave, the primary carer has to be earning less than $150,000 – so if a mum is a primary carer then she has to be earning less than $150,000 – if a dad is a primary carer then he has to be earning less than $150,000. The paid parental leave is for 18 weeks at minimum wage – $540 per week. These parents will not not get the baby bonus and also during these 18 weeks they will not be eligible for any family tax benefits.

This is a step in the right direction. The first few months in a baby’s life are very important – both for the parent and the baby. This leave help in bonding, breast feeding, recovering and most of all – just enjoying being a mum.

The paid parental leave will be financed by the Federal Government and not the company. Some companies have some kind of paid maternity leave (very few – I think BHP has something for mums on maternity leave). These companies should not remove the current incentives they provide – and companies which were planning to introduce a paid maternity leave should still do.

Other Budget 2009 Posts:

Changes For Carers’ Income

Pension Income and Pension Age Changes

Superannuation Changes

First Home Buyers Grant Boost

Budget 2009 Winners and Losers

Tax Cuts