Paid parental leave can include both employer-funded and government-funded schemes.
Australian Government Paid Parental Leave scheme
The Australian Government Paid Parental Leave scheme is a new entitlement for working parents of children born or adopted on or after 1 January 2011.
The scheme provides government-funded Parental Leave Pay at the National Minimum Wage for a maximum period of 18 weeks, and can be received before, after, or at the same time as existing entitlements such as annual leave, long service leave, and employer-funded paid parental leave.
Record keeping requirements
Employers have certain record-keeping requirements under the Australian Government Paid Parental Leave scheme. Employers must keep records which specify:
- the Parental Leave Pay funding amounts received from the Family Assistance Office for each employee, and the period for which these amounts cover
- the date of each Parental Leave Pay instalment made to their employee, the period which the payment covers, the gross amount of the payment and a statement identifying that the payments made are Parental Leave Pay under the Australian Government Paid Parental Leave scheme
- if no other payments are made for the period, the net amount of the Parental Leave Pay, and the amount of income tax withheld from the payment
- if other payments (such as annual leave or employer-funded Parental Leave Pay) are made for the period, the total net amount paid for the period and total income tax withheld for the pay period
- the total amount of any deductions made from each Parental Leave Pay instalment.
Pay slip requirements
Employees receiving Parental Leave Pay must continue to receive a pay slip for each payment or be provided a separate written advice. A written advice or a pay slip (in addition to the standard requirements of a pay slip), must have a statement identifying that the payments made are Parental Leave Pay under the Australian Government Paid Parental Leave scheme. The following information must also be included:
- if no other payments are included in the pay slip, the gross and net amounts of the Parental Leave Pay, and the amount of income tax withheld from the payment
- if other payments (such as annual leave or employer-funded Parental Leave Pay) are included in the pay slip, the gross amount of the Parental Leave Pay, as well as the total net amount and income tax withheld for the pay period
- if a deduction from the Parental Leave Pay is made, the amount of the deduction and the name and bank details of the entity to whom the deduction is made.
Note: only certain deductions from Parental Leave Pay are permitted under the Paid Parental Leave scheme. For more information about permitted deductions, visit the Family Assistance Office’s website 
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The Fair Work Ombudsman can enforce an employer’s payment and record keeping obligations under the Paid Parental Leave scheme, and may investigate any related complaints.
Further information about the scheme, including information about record-keeping, pay slip obligations and allowable deductions, can be found at the Family Assistance Office’s website .
Employer-funded paid parental leave
Many employers also provide employees a period of paid parental leave through their enterprise agreements, contracts of employment or workplace policies. Such incentives can help businesses attract and retain talented staff.
The introduction of the Australian Government’s Paid Parental Leave scheme is not intended to replace existing entitlements to employer-funded paid parental leave, and having an existing entitlement to employer-funded paid parental leave does not affect an employee’s potential eligibility for the Australian Government’s Paid Parental Leave scheme. If an employer currently provides paid parental leave through an industrial agreement (such as an enterprise agreement), the entitlements will continue as long as the agreement applies.