A commonly asked question when it comes to parental leave is, “who pays the parental leave – Is it the employer or the federal government?”
The answer is: The Department of Human Services.
They manage any welfare payments such as age pension and paid parental leave. Once you have a Department of Human Services “customer reference number” (CRN,) all you have to do is give that to your employer and let them know that you are going to be receiving parental paid leave.
What happens after that is, they funnel the money through your employer and then your employer passes that money onto you. Alternatively, they can also pay directly, however that’s where it can get confusing.
Overall, your employer doesn’t pay for parental leave, it still comes from the Federal government and The Department of Human Services is how it is managed.
If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute zoom or phone call where you get to meet us to manage your questions.
From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax.
Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us.
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