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Good news for parents of babies born after 1 April

Increases to paid parental leave and parental tax credits from last year’s Budget will soon come into play. Paid parental leave will increase from 14 to 16 weeks and parental tax credits will go from $150 for 8 weeks to $220 for 10 weeks.

If you’re an employee or are self-employed, the changes to paid parental leave apply if:

  • your child’s due date is on or after 1 April 2015, but the child is born before then, or
  • your child is born on or after 1 April 2015,
  • or in the case of adoption, if the date on which you start caring for your child is on or after 1 April 2015.

If you’re an employee or are self-employed, the changes to parental tax credits apply if:

  • your child is born on or after 1 April 2015, or
  • in the case of adoption, if the date on which you start caring for your child is on or after 1 April 2015.

What the changes mean for employers

While the changes are not likely to have a significant impact for employers, your employees may appreciate hearing the details from you. Below you’ll find a sample letter employees can use to apply for paid parental leave and the Inland Revenue form they will need to apply for parental tax credits.

Further extensions to paid parental leave in 2016

Paid parental leave provisions will increase again on 1 April 2016, from 16 to 18 weeks. From that date parental leave payments will apply to more workers - in particular people who have recently changed jobs, seasonal and casual workers, those with more than one employer, and primary carers, Home For Life parents and other carers with similar permanent care arrangements will also be able to access paid parental leave.

Read more about paid parental leave (external link)

Templates and forms for employees

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