This Part sets out when a person is eligible for parental leave pay. The Secretary cannot make a payability determination that parental leave pay is payable if the person is not eligible for it.

Division   2 sets out when a person is eligible for parental leave pay. Section   31AA sets out when a person is eligible for parental leave pay on a flexible PPL day for a child. Sections   31AB and 31ABA set out the maximum number of flexible PPL days for a child for which parental leave pay can be paid. This includes, subject to certain exceptions, the flexible PPL days that are reserved for other claimants where a claimant has a partner at the time of their first effective claim.

Division   3 has the work test. To satisfy the work test, a person must have performed enough paid work or taken enough paid leave in a particular period. A flexible PPL day for a previous child for which parental leave pay was payable to the person may be taken into account in working out whether the person satisfies the work test for a subsequent child. Any jobkeeper payment period or COVID - 19 Australian Government payment period for the person may also be taken into account. Special rules apply in the case of premature birth or complications or illness related to the pregnancy (see section   36A) or in special circumstances (see section   36AA).

Division   4 has the income test. To satisfy the income test, the person's income for a particular income year must not be more than either the individual PPL income limit (which is $150,000 until 30   June 2021 and then indexed) or the family PPL income limit (which is $350,000 until 30   June 2024 and then indexed). If the person has a partner, their partner's income is also counted towards the family PPL income limit.

Division   5 has the Australian residency test. To satisfy this test, the person must be an Australian resident or be in a special class of visa holder.

Division   6 sets out when a person is caring for a child.