Child Development Leave Amendment Overview

Jan 19, 2025

Lecture Notes: Child Development Co-Savings Amendment Bill

Overview

  • Purpose: Enhance government-paid paternity leave and shared parental leave schemes.
  • Additional Protections: Introduction of new employment protections and operational changes.

Government-Paid Paternity Leave (GPPL)

  • Clause 9: Mandates an additional two weeks of paid paternity leave.
    • Eligibility:
      • Fathers of children born on/after 1 April 2025.
      • Adoptive fathers with applications on/after 1 April 2025.
  • Clauses 11 & 12: Double the payment and reimbursement limits for eligible employees and employers.

Shared Parental Leave Scheme (SPL)

  • Purpose: More time off for parents to bond and care for infants.
  • Design: Shared leave between fathers and mothers.
    • Clause 6:
      • Eligibility for working parents entitled to maternity, paternity, and adoption leave.
      • Default allocation: Half entitlement to each parent (3 weeks each from 1 April 2025, 5 weeks each from 1 April 2026).
    • Flexibility:
      • Changes allowed within the first four weeks post-birth or adoption eligibility date.
      • Post four weeks, employer agreement needed for changes.
  • Notice Period:
    • Minimum notice period of four weeks for continuous leave.

Employer and Employee Considerations

  • Cost Management: Government pays all 10 weeks of shared leave (up to $2,500/week cap).
  • Operational Adjustments: Temporary hiring or adjustments possible with wage savings.
  • Lead Time: Employers need sufficient notice to make arrangements.

Questions and Clarifications

  • Premature Births:
    • No penalties for insufficient notice if cause is valid.
  • Operational Constraints:
    • Leave can be taken within 12 months of birth.
    • Penalties for employers only if unable to grant leave without reasonable cause within 12-month window.

Conclusion

  • Implementation: Ensures balance between parental needs and business continuity.
  • Goal: Encourage shared parental responsibility and support parents in caregiving roles.