• The Paid Parental Leave scheme will be funded by the Australian Government.
• The scheme will provide Parental Leave pay to mothers and adoptive parents who have been working and who have a baby or adopt a child on or after 1 January 2011.
• To be eligible for the scheme, claimants will need to meet the Paid Parental Leave work test, the income test and the residency requirements.  These are explained in this booklet.
• Parental Leave pay is not a leave entitlement, but it will complement parents' entitlements to leave such as unpaid parental leave under the National Employment Standards. 
• Paid Parental Leave is for a maximum of 18 weeks.
• Parental Leave pay will be at the rate of the National Minimum Wage (currently $543.78 per week before tax).  Parental Leave pay will be treated in the same way as other taxable income.
• Parents can nominate when they wish to receive their pay.  The Parental Leave pay must be taken in one continuous 18 week period.  The start date can be on or after the child's date of birth,* (but not before) and all the pay must be received within the first 12 months after the date of birth.*
• Parental Leave pay can be received before, after, or at the same time as employer-provided paid leave such as recreation or annual leave and employer-provided paternity leave.
• Parents will lodge their claim with the Family Assistance Office and it will assess the parent's eligibility.  Claims can be lodged up to three months prior to the expected date of the birth.* 
• Once the scheme is fully implemented, Parental Leave pay will be provided by employers to their long-term employees.  A long-term employee is a person who has been an employee of the employer for 12 months or more prior to the expected date of birth* of the child.
• The employer role is being phased in over the first six months to help employers transition to the new arrangements.  However, employers can choose to provide Parental Leave pay to their employees from the beginning of the scheme.  Otherwise, the Family Assistance Office will provide Parental Leave pay.
• Employers will generally be required to provide Parental Leave pay to their long-term employees who have a child born or adopted on or after 1 July 2011. 
• The Family Assistance Office will send a notice to an employer if they are required to pay an employee Parental Leave pay.  It will also advise the parent of this.  In other cases, the Family Assistance Office will make the payment direct to the parent.
• A parent will not be able to work while receiving Paid Parental Leave but may "keep in touch" with the workplace.
• If a person returns to work before they have received all of their 18 weeks of Paid Parental Leave, the person's partner may be able to receive the unused amount of Paid Parental Leave.  Otherwise, Paid Parental Leave will stop when the person returns to work.
• If parents are not eligible to or do not choose to receive Paid Parental Leave, they may be able to receive the Baby Bonus and Family Tax Benefit under the usual rules.  An online Paid Parental Leave estimator will be available from September 2010 to help parents choose the option that is best for them.

 * or date of placement for adoption

SOURCE: http://www.familyassist.gov.au