Jump to content

Govt Paid Maternity Leave


  • Please log in to reply
21 replies to this topic

#1 Wishing2011

Posted 10 January 2013 - 12:46 PM

Hi everyone, I’m just trying to work out my budget while I am off on mat leave later this year and am trying to work out an estimate of how much I will get back from the govt paid mat leave after tax. For those of you that know how to work it out can you please help me original.gif

#2 gemgirl

Posted 10 January 2013 - 01:01 PM


As far as I know, it depends on your tax rate, so no one can work it out for you, really, as everyone will have a different rate

#3 katiebear26

Posted 10 January 2013 - 01:03 PM

try http://www.ato.gov.au/scripts/taxcalc/calc...ndard_hire.aspx to calculate based on your circumstances :-)

#4 Wishing2011

Posted 10 January 2013 - 01:07 PM

isn't that tax calculator to calculate the tax I'm paying on my current wage?? Does the Govt Paid Mat leave tax rate get charged on my current tax rate?? I'm really confused...

IS there anyone out there currently receiving it that can help me work it out..

I'm assuming the current minimum wage is now approx $608.. From what I read on the medicare site, if you don't have a job (which I may not have) when I have bub you will get taxed at a rate of 25%.. So does this mean I may be getting in the hand $454.80 per week? If I do go on mat leave I will not be entitled to paid mat leave from work so I will be reyling on this as well as my husbands income..

Edited by Wishing2011, 10 January 2013 - 01:12 PM.


#5 Tenacious C

Posted 10 January 2013 - 01:18 PM

Generally PPL is paid into your account by your employer - the amount of tax witheld will depend on the tax rate your employer applies, whether you have a HECS/HELP debt etc. the tax rate applied would also be effected by whther you are taking paid leave from work at the same time. For example it is possible to have PPL paid at the same time you are utilising annual leave, long service leave etc.

There are circumstances where Centrelink will pay PPL into your account, but this is not the norm.

So it is really difficult for someone to work it out for you as our circumstnaces may not be the same and we do not know what your taxable income for the financial year will be and whether you have a HECS/HELP debt.

#6 robot sm

Posted 10 January 2013 - 01:21 PM

To estimate mine, I just applied my current tax rate to the $608 - I figured it out from a recent payslip.  It's just an estimate but was helpful for a rough budget.

#7 Feralmummacat

Posted 10 January 2013 - 01:24 PM

I know my employer continued to tax me at the same tax rate I was on when I was working during my paid parental leave period. This just meant I got a larger tax return and timing wise it working out well for us as it was like a forced saving. I recommend that you talk to your payroll department to see what their policy is and how they will calculate your tax for the period.

#8 MrsLexiK

Posted 10 January 2013 - 01:25 PM

If you are on a higher tax bracket you will be taxed at that rate for mat leave, if you are on the lowest one you will be taxed at that one.  If you are taxed to much you will get it back at tax time.  That is for an employer.  It could well be that if the govt is paying it (in cases where you have a contract or have been made unemployed but still meet the test) they may tax you at 25% to ensure you do not end up with a tax debt at the end of the year.  Remember if you are not taxed enough there will be a tax debt.

#9 Wishing2011

Posted 10 January 2013 - 01:27 PM

I'm currently contracted so I don't know if they will keep me on. They are talking about making me permanent but if they find out I am pregnant they might not. My contract ends in June so I may not have an employer. I have no HECS debts. if it is as simple as applyign my current tax rate then that's fine. I just have no idea how to work it out.. they dont make it easy for you to work out.. Should I call centrelink maybe?

thanks ladies if it is as simple as working out my current rate then I will work with that for now original.gif

#10 winterbabies

Posted 10 January 2013 - 01:29 PM

It depends on how much you will earn in that week as to what the tax rate will be.
For example, if you choose to be paid the PPL at the same time as Maternity leave payments from your employer, then you will pay more tax than if you take the payments once your employer payments finish. Tax is calculated on the amount you earn in the payment period and adjusted accordingly- it is not calculated on how much you may earn for the year.

So, if you are only receiving the PPL in a payment period then you will pay a very small amount of tax, the calc previously posted can help you work this out.

Whichever way you take it though, your tax will be corrected when you do your return.

#11 Ally'smum

Posted 10 January 2013 - 01:30 PM

I started mine in a new financial year and asked my employer to take tax out at the applicable rate, not my salary tax rate. As it was my only income for that financial year it was easy to do.
If you want them to do this it should be straightforward.

#12 Feral Mozzie

Posted 10 January 2013 - 01:31 PM

To figure out how much tax you will need to pay on it accurately, you need to calculate how much tax you will pay for the whole year.

To do this, you will need to first know how much you will earn for the year.

Eg.

You work full time for 4 months on a salary of $90k = $30k.
You get 18 weeks PPL at $608 pw = $10,944
You take the rest of the year as unpaid maternity leave.

Total earnings $40,944
Estimated tax $6242, or 15%.

#13 JRA

Posted 10 January 2013 - 01:34 PM

i am not sure how many times people can answer your question.

The tax in the end will be based on what you earn for the financial year in which you receive the income. So if you finish you current job at the end of june, and dont work for a full 12 mths, the final tax will be zero. So any tax taken out will be returned in your tax return.

If you take the 18weeks off then earn another  $180K or so in the remainder of the tax year, the tax rate will the top tax rate.

So what rate the govt takes out will affect what you get in your hand at the time, but not overall, as the tax return may take more or give some back.

#14 Wishing2011

Posted 10 January 2013 - 01:40 PM

Mozzie answered it for me.. Thank you!! original.gif

#15 sarkazm76

Posted 10 January 2013 - 01:45 PM

This is a bit of an aside - but PP said it is "not the norm" for Centrelink to pay PPL.  When I was paid PPL in 2011 when I had my son it was totally optional for employer to pay it or not (until the next fin year started)  Mine said too hard blah blah, lazy - didn't think they would get the money from the government in a timely fashion.... so I just claimed through Centrelink.  So this time around (Due in May) I started looking into it thinking I would HAVE to get my employer to pay it and they will f it up if I don't sort it out soon..... but the info I found said that because Employers were soooo unhappy about having to administer the scheme that the government changed it and said "ok then we won't make you do it - people can claim through us still".
So my intention is to claim through Centrelink and be taxed flat rate of 15%.

If anyone knows if that info is wrong could you please tell me.... like I said if I HAVE to get my employer to do it I need to start them down that road NOW.

But yes, I would think if my employer is paying me $608 a week then they will tax me as such. As tax is always paid per pay period.  They won't take any consideration to what my full time working pay is/ tax is.


#16 l-m-n-o-p

Posted 10 January 2013 - 01:45 PM

I am currently getting the PPL paid directly from the govt (before the birth of my son, I was working casually for a couple of different employees) - I net $1,032.00 a fortnight.

I think the tax deducted is based on the scenario where you would be in the minimum wage tax bracket for the entire tax year. The total tax is adjusted at the end of the tax year based on any other earnings leaving you with a bill or return.

#17 naturalgoodness

Posted 10 January 2013 - 01:45 PM

I just completed my PPL application online. As I will not be working for my employer when the PPL is paid Centrelink will pay it and their process advises they will deduct 15% tax from the payment. You can nominate to have extra taken if want.

If I was continuing with my employer, they would continue to tax as per their current system of payroll as that is how it would be paid.

As others have then said, at the end of the financial year all tax paid is considered against gross earnings and worked out whether you have over or under paid tax.

My contract also ends in June, however I will be going on unpaid leave from March-June so Centrelink will pay my PPL due to the 18 weeks extending past my contract end date. Given you situation sounds similar to mine, I would use the 15% rate that Centrelink quoted me.

#18 Wishing2011

Posted 10 January 2013 - 01:54 PM

Thanks naturalgoodness, yes your situation sounds like mine. Easy to work out if it is 15%.. If I need to pay a little bit of tax at the end of the next financial year so be it. I don't plan on working within the 12 months but I might need to and it might push us up to the bracket where I pay more tax again.

I appreciate everyones help. Obviously I'm new to working this all out. So at least now I can work off something for now to plan my budget :-)

#19 FeralMuddyPuddles

Posted 10 January 2013 - 02:00 PM

Ive just gotten off the phone with my HR about this (government)

If I get PPL at the same time at my mat leave payments, I will be taxed in whatever that tax bracket is, which would be high.

If I get the PPL to be paid after my paid leave entitlements run out, and I am on unpaid mat leave,  then I will only be taxed on $608  which is the PPL payment, per week. The calculator provided before will work this out for you. You can nominate when you want the payments to start, so I will be taking the second option and getting paid PPL whilst on unpaid mat leave so there is still some income coming in.

If you are not employed at the time then Centrelink will provide your PPL payment and you will only be taxed on $608 per week at the appropriate lowest tax bracket.



#20 Wishing2011

Posted 10 January 2013 - 02:02 PM

perfect! thanks that's easy then original.gif and good to know in case I was entitled to paid mat leave from my employer.

Edited by Wishing2011, 10 January 2013 - 02:02 PM.


#21 Tenacious C

Posted 10 January 2013 - 02:19 PM

sarkazm76 - From the Human Services website - http://www.humanservices.gov.au/business/s...-for-employers/

In most cases, employers provide Parental Leave Pay to their eligible employees. The government provides the necessary Paid Parental Leave funds to employers first.

As an employer, you must provide Parental Leave Pay to an eligible employee who:

  • has a newborn or recently adopted child
  • has worked for you for at least 12 months before the expected date of birth or adoption
  • will be your employee until at least the end of their Paid Parental Leave period
  • is Australian-based, and
  • is expected to receive at least eight weeks of Parental Leave Pay.
Your business must have an Australian Business Number to participate in the scheme.



#22 sarkazm76

Posted 10 January 2013 - 04:11 PM

Uuugghhh.
Thanks for that biggrin.gif  The above exasperation is that I now have to get dumb and dumber to pay me sad.gif  I've messaged Centrelink to ask them if I can opt to have them pay me instead, ha!  Last time all my employer had to do was pay all my accrued annual leave and she f'ed it up and over taxed me by $1000 and ignored all my requests to rectify.  For her it's a matter of "oh well you will get it back at tax time".  Like everyone can just afford to wait.

Sorry - end rant biggrin.gif






1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

Wet wipes linked to rise in allergic reactions

The government has issued a health warning after a rise in allergic skin reactions has been linked to a preservative found in some wet wipes.

Gay couple in their 80s first to wed in Dallas after Supreme Court ruling

Love may have won, but it came with quite the wait.

William Tyrrell's family marks birthday with cake and renewed appeal

The family of missing boy William Tyrrell will mark his fourth birthday on Friday making a cake to share with friends and family as NSW police renewed their public appeal for information on his disappearance.

What all parents should know about safe babywearing

A picture of Ryan Reynolds always gets the girls talking, and a recently shared photo has done exactly that - but this time, it's for all the wrong reasons.

Baby's head shape reveals potentially fatal condition

Thinking her baby just had an unusually shaped head, a mother was shocked to discover it was instead linked to a dangerous condition.

'Help - my toddler hits me!'

My toddler has started hitting when he gets frustrated, is feeling ignored, or just thinks it might be fun.

Why IVF success rates may not be what you think

Transparency, accountability and responsibilityare essential measures to protect IVF vulnerable patients.

On the 10th anniversary of my son's death

This day marks a significant day. Today marks 10 years since I lost my son Kai.

Owning a pair of nail scissors does not make me a hairdresser

It's been a whole year since sleeping in until 10am. A whole year since having a peaceful shower.

WIN A $500 VISA DEBIT CARD

Are you a parent, or are you planning to be? Tell us what you think and you'll go in the draw to win a $500 gift card!

Sexy time

Why you should get excited about scheduling sex

Unfortunately, the belief that sex should always be spontaneous is a myth. It just isn't.

Orphaned baby daughter Ayla wakes from coma

Former All Black Jerry Collins' critically injured orphaned daughter has awoken from her coma and is able to bottle-feed.

Dad takes miraculous catch while feeding baby

One American father has taken multitasking to a new level at a Cubs-Dodgers baseball game at Wrigley Field.

'Samuel is our firstborn, and he will never be forgotten'

Having lost their firstborn at one day old, the Carrolls were overjoyed to welcome their daughter Isobel into the world a year later.

The top 6 misleading parenting terms

From 'morning sickness' to 'the terrible twos', there are many parenting terms that are misleading.

When 'good' nannies go bad

While most nannies take pride in their work, there can be some who have a hidden side.

Woman hospitalised for skinny jeans injury

Beware: skinny jeans might be bad for your health.

Gauze seeding: the bacteria-breeding birth trend

A number of women having caesarean deliveries are now taking steps to give their baby a better 'microbiome' start in life.

Jimmy Fallon writes new children's book for dads

Jimmy Fallon, host of NBC's The Tonight Show, recently wrote a children's book about every father's secret wish for their baby's first word to be "dada" - not "mama".

28 names for babies born in winter

Looking for some baby name inspiration for a bub born during the colder months? Here are 28 options from around the world to consider.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

27 funny ultrasound pictures

Ultrasounds give you a look at your growing baby ... and sometimes what appears to their womb-buddy, or your bub in an amusing position.

The horrible act that sparked a brawl at child's birthday party

The uncle of the seven-year-old girl at the centre of the brawl at child's birthday party in Sydney's west has described the events leading up to the alarming show of violence.

Babies 'benefit from iPads at a young age': study

More often than not, you'll read that screen time for children should be kept to a minimum - but some scientists are now challenging this way of thinking.

Do mums really just obsessively talk about their children?

Natalie Reilly describes three main types of conversations mothers have. And, surprise, they're not all about kids.

Why some dogs might attack babies or young kids

A baby's smell, the noises it makes and even its gaze can contribute to the potential for a dog attack.

Mum demands refund for 'beargina' christening cake

It was meant to be a tasteful cake to help celebrate a three-year-old's christening.

5 things no one warns you about after giving birth

How many times have you been warned about all the sleepless nights you have to 'look forward to' when you become a parent?

Police officer sang nursery rhyme as heartbreaking photo was taken

A police officer arrived at a devastating scene on Thursday: a car crash resulting in all passengers being thrown from the vehicle.

Don't worry, working mums: Just leave Dad in charge at home

Want to open the boardroom doors for women? Encourage - heck, praise - dads who stay home with their children.

Hilaria Baldwin shares post-baby selfie

Just two days after giving birth, actor Alec Balwin's wife posted a post-baby picture on social media.

'Help - my child won't ever do what I ask!'

Compliance is part of the parent-child relationship, but so is resistance. It's all natural.

Postnatal depression support gets $23 million boost in NSW

The Baird government will include $22.8 million in Tuesday's NSW budget to expand a program designed to help parents at risk of postnatal depression (PND).

'I'm just as tired, scared and stressed as you': stay-at-home dad's plea

I'm really lucky to have two great kids, but I found it really tough with so much being aimed at the mothers and not the fathers.

6 tips for transitioning back to work after baby

Mums returning to work - and yes, dads too - aren't the same as when they left. But that doesn't mean they're not as good as they once were.

Couple reveals pregnancy with epic Britney Spears parody

How do you create an original pregnancy announcement and gender reveal? You turn to Britney Spears.

The truth about birthing a big baby

When told that they are having a 'big baby', many women have a lot of fears. But those fears are often unfounded.

Eight months pregnant and addicted to eating soap

This bizarre snack takes the cake (of soap) when it comes to weird pregnancy cravings.

Can you spot the drowning child?

Can you spot him in the video? The child who loses his rubber ring, panics, and then almost drowns? It isn't easy.

Noodles, peanuts, wee wees and lady bits

Yes, I know it's silly. I know all the advice from experts is to use the right terminology from the moment your child can talk. But I just can't.

Mum's brave battle for unborn triplets amid cancer diagnosis

Bree O'Malley has a cancer diagnosis, a rare blood condition, kidney and liver failure and other complications. And she is pregnant with triplets.

 

Win $500

WIN A $500 VISA DEBIT CARD

Are you are parent or planning to be? We want to know what you think - let us know and you'll be in the draw to win a $500 gift card.

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.