The proposal would introduce a “use it or lose it” parental leave scheme which would:

• increase the maximum Parental Leave Pay (PLP) entitlement to 26 weeks to be divided between parent 1 and parent 2 as follows.
  • 6 weeks for parent 1
  • 6 weeks for parent 2
  • 14 weeks to whichever combination of parents determined by the family
• increase the PLP entitlement for singles to 26 weeks
• be paid at the leave taking parent’s wage. The leave wage would be capped at $100,000 in the first year of the proposal and indexed by the consumer price index annually. Superannuation contributions would be included on PLP payments.

The proposal would have effect from 1 July 2023.