The Law Handbook 2024

Chapter 5.1: Dealing with social security 331 An additional payment of a Newborn Upfront Payment ( NBU ) of $641 per child may also be payable. There are two rates of payment for NBS: a higher and lower rate. This is determined by: • who the claimant is (birth mother, adoptive par- ent, non-parent carer, other); and • the type of birth (live or stillborn); and • whether there are multiple children (multiple births, multiple children aged under one year entrusted to care, multiple children adopted; and • the family’s income. As at 1 July 2023, the higher NBS rate is $1924.65 and the lower NBS rate is $642.46. For example, for a first child eligible for the NBS, the payment would be $1924.65. For a subsequent child of the same birth mother, the NBS payment would be $642.46. A Stillborn Baby Payment is also payable for families that experience the loss of their baby as a result of stillbirth. This payment is for families that do not meet the Parental Leave Pay criteria but earn under the income threshold or are eligible for FTB(A). (See also A Guide to Australian Government Payments for more information about the Newborn Supplement and Upfront Payment.) Parental Leave Pay, and Dad and Partner Pay The Paid Parental Leave scheme has been amended and entitlements will depend on the date the child was born or adopted. Children born or adopted before 1 July 2023 For children born or adopted before 1 July 2023, the scheme provides two government-funded payments to enable parents to take time off work to care for their children during the first months after birth or adoption. These payments are Parental Leave Pay, and Dad and Partner Pay. Parental Leave Pay is payable to eligible parents/carers who have a child or adopt a child after 1 January 2011 (and before 1 July 2023). It is paid for a maximum of 18 weeks (during 12 continuous weeks of parental leave and 30 days during the flexible paid parental leave period which can be added to the 12-week block or used flexibly). It is a taxable payment. Usually, the birth mother or primary carer of an adopted child should apply for this payment. Applicants must meet work, income and residency tests, and not be working. The work test requires the applicant to have undertaken qualifying work (at least one hour per day) for at least 10 of the 13 months before their child’s birth or adoption, and for at least 330 hours in that 10-month period with no more than a 12-week gap between two working days. Exceptions to the work test may apply for pregnancy-related illnesses or complications, premature births, dangerous jobs, severe medical conditions, natural disasters, and family and domestic violence affecting the claimant’s ability to work. Periods of Parental Leave Pay, and Dad and Partner Pay for a previous child may be able to count as work for the purposes of a new claim. Generally, a newly-arrived residents’ waiting period of 104 weeks must be served before an applicant can receive paid parental leave unless an exemption applies. Certain category visa holders may be exempt, including SCV holders and applicants who were receiving a social security pension or allowance, a farm household allowance or Dad and Partner Pay on the day of the child’s birth (for primary applicants) and the day before the paid parental leave would start (for primary and secondary applicants). Parental Leave Pay, the Newborn Supplement, and the Newborn Upfront Payment cannot be paid for the same child. A person must have an individual adjusted taxable income of a specified amount or less in the financial year prior to the date of the claim, birth or adoption (whichever is earlier) to be eligible. The specified amount for the 2020–2021 financial year is $151350; the specified amount for the 2021–2022 financial year is $156647. There is no assets test. Employers must provide Paid Parental Leave to eligible employees. If an employer is not required to provide Paid Parental Leave, they can still choose to provide it in agreement with the employee. Eligible parents who do not receive Parental Leave Pay from their employer will receive it from Centrelink. Dad andPartner Pay is payable to eligible parents/ carers for children born or adopted from 1 January 2013 (and before 1 July 2023). Dad and Partner Pay will not be available for children born or adopted after 1 July 2023. It is paid for a maximum period of two weeks. To receive the Dad and Partner Pay,