Skip to content

Paid parental leave

Paid parental leave is a government scheme for eligible working parents. The government pays money to the employer to pass on to the employee.

For the current rate of paid parental leave and its tax implications, seek advice from the ATO or Services Australia.

The setup described below is one way of tracking paid parental leave. Depending on your parental leave reporting obligations, you may want to track your parental leave differently. Your accounting advisor or the ATO will be able to provide clarification on the appropriate solution for your circumstances.

There are a few accounts and pay items you'll need to set up, and we'll take you through it one step at a time.