The Commonwealth Paid Parental Leave (PPL) scheme was established on 1 January 2011, with its operation and eligibility requirements set out in the Paid Parental Leave Act 2010 (the Act).5 It applies to all employers, regardless of size, and is available to eligible full-time, part-time, casual, seasonal, contract and self-employed workers.

The report comprises two chapters, including the introductory chapter, which provides background about the Commonwealth PPL scheme (including the changes that came into effect on 1 July 2023) and its administration.

Chapter 2 explores participant views on the experiences and impacts of the Commonwealth PPL scheme.

Key recommendations:

• The committee recommends that the Australian Government task the Productivity Commission with conducting an inquiry into the impact of the Commonwealth Paid Parental Leave scheme on Australian businesses, including a particular focus on small business.
• The Paid Parental Leave Act 2010 should be amended to require the Secretary, as defined by the Act, to pay Parental Leave Pay instalments directly to employees of small businesses (defined as businesses employing fewer than 20 employees) except in cases where a small business opts to pay Parental Leave Pay instalments directly to an employee.
• The committee recommends that the design and delivery of advice for small business should aim to minimise the administrative burden on small businesses by recognising and responding to the particular challenges they face, including time and capacity constraints.