This proposal would modify the current paid parental leave scheme as follows.

• Increase the paid parental leave entitlement for the nominated primary carer to 26 weeks, paid at the carer’s replacement wage. The annual replacement wage would be capped at $100,000 in the first year of the proposal and indexed by the consumer price index annually.
• Allow two weeks of the primary carer’s entitlement to be accessed by their partner at the partner’s replacement wage. The primary carer’s entitlement would be correspondingly reduced to 24 weeks.
• Where the primary carer is the non-birth parent, they would receive their actual wage unless it is higher than both the birth parent’s wage and the national minimum wage, in which case they would receive the higher of the birth parent’s wage or the national minimum wage.
• Include superannuation contributions on all Commonwealth Government paid parental leave payments at the superannuation guarantee rate.
• Allow Commonwealth, state and territory public sector employees to choose to take either their negotiated workplace parental leave entitlement or the proposed paid parental leave scheme (but not both).
• Administer the payments through the Department of Human Services, rather than through the employers of the recipients.

The proposal would have effect from 1 July 2020.