Your Guide to Paid Parental Leave as a Sole Trader
So you're expecting a little one — congrats! As a sole trader, you're probably wondering:
What does parental leave even look like when you work for yourself?
Here's the good news: the Australian Government's Paid Parental Leave (PPL) scheme does include you. You're not an afterthought, and with the right planning, you can take meaningful time off, receive government pay, and come back to a business that's still standing.
This guide walks you through everything: what you'll receive, whether you qualify, how to prep your business, and what you can (and can't) do while on leave. Let's get into it!
THE BASICS
What do I actually receive?
As a self-employed sole trader, you can apply for Parental Leave Pay (PPL) directly from the Australian Government through Services Australia. This isn't just for employees, if you work for yourself, you can absolutely be eligible too.
What you'll receive:
From 1 July 2026, the government will also pay 12% superannuation on top of your PPL directly into your super fund, finally!
Applications are handled through Services Australia. You can apply up to three months before your due date, which we strongly recommend doing early.
ELIGIBLITY
How do I qualify?
To be eligible for PPL as a sole trader, you need to pass four criteria. Here's the quick breakdown:
Your individual income must be $180,007 or less in the 2024–25 financial year. If you have a partner, the combined family income test is $373,094 or less for the same period.
You need to have been self-employed for at least 10 of the 13 months prior to your baby's birth, and worked a minimum of 330 hours during that 10-month window. That works out to roughly 8 hours a week, very achievable for most sole traders.
You'll need to be an Australian resident for both tax and social security purposes. Pretty straightforward for most Melbourne locals!
You need to be the person mainly responsible for the day-to-day care of your child. If that's you, you're in.
What about partners?
If you're the non-birthing parent, you could also be entitled to 3–4 weeks of Partner Pay. The eligibility rules are broadly similar: income test, work test, residency — so it's well worth checking your entitlements too.
BUSINESS PLANNING
How do I prepare my business?
This is where sole trader parental leave gets real. There's no HR team to hand things over to — it's just you. But with some solid preparation, you can step away with confidence.
✔️ Set clear start and end dates for your leave and stick to them. Communicate these to clients and suppliers well in advance.
✔️ If you have contractors or staff, create a proper handover plan and delegate key tasks before you go.
✔️ Automate as much as possible email auto-responders, social media scheduling, and recurring bill payments can all be set up in advance.
✔️ Save 3–6 months of business and personal expenses before your leave begins. This gives you breathing room beyond the PPL payments.
✔️ Consider outsourcing admin tasks (bookkeeping, inbox management) during your leave period so things don't pile up.
✔️ Chase outstanding invoices before your leave starts, don't leave money on the table.
DURING LEAVE
Can I do any work while on paid leave?
Great question and the one we get the most. The answer is yes, within limits. You're allowed up to one hour per day of occasional tasks, such as:
✔️ Paying an account
✔️ Checking on an order delivery
✔️ Approving business accounts
✔️ Handling an ad hoc dispute
✔️ Organising a repair
✔️ Maintaining a basic level of client contact
✔️ Keeping your professional skills up to date
One important rule: you cannot work at all during the first 14 days after your baby arrives. Give yourself that time, newborns are a full-time job in themselves!
If you do end up working more than an hour on a given day, you can reschedule that flexible PPL day or return it to your balance via your Centrelink online account through myGov.
What about passive income?
Good news here. If you're simply receiving payment for work you completed before your leave, that's generally fine and won't affect your PPL. It's only if you're actively doing tasks to earn money during your leave that it counts as work.
IN REAL LIFE:
Meet Jen the photographer
Jen is a Melbourne photographer who started planning her parental leave eight months before her due date. Here's how she did it:
🗓️ 8 Months Out Confirming eligibility and setting boundaries
Jen confirmed her PPL eligibility, spoke to her accountant, and set a firm "last shoot" date. Getting clarity early meant she could plan her client calendar properly.
🗓️ 6 Months Out Client communications and outstanding invoices
She reached out to clients with upcoming bookings, offered referrals to trusted colleagues, and chased any outstanding invoices so her finances were clean going in.
🗓️ 3 Months Out Automating and buttoning things up
Jen paused new enquiries, set up auto-responders, backed up all client files, and prepaid subscriptions so nothing lapsed during her leave.
🗓️ During Leave Staying hands-off (mostly)
Her partner handled a quick weekly email scan. Passive income from print sales continued to come in. This is totally fine, since that work was done well before her leave.
🗓️ 2 Months Before Returning Warming things back up
Jen reopened bookings, refreshed her social presence, and updated her pricing, coming back with fresh energy and a clear runway.
PERSONAL DECISION
How long should you take off?
The finances are only part of the decision. How long you take off as a new parent is deeply personal, and only you can weigh up what's right for your family against what's sustainable for your business.
There's no "correct" answer. Some sole traders take the full leave; others return earlier because they genuinely want to. The most important thing is that the decision is yours, made from a place of financial clarity and good planning, not panic.
If you're not sure where to start, talking to an accountant who understands self-employment (like us at Bramble & Briar!) can make the whole picture a lot clearer.
How can I look after myself?
Pre and postnatal support is so important! Shout out to some of our clients who do just that:
Eve Studio offers a range of classes and other offerings to support mummas and mums-to-be including prenatal yoga and pilates, birth prep classes as well as some wonderful child-friendly classes and “move with mini” sessions.
(Brunswick and Preston)
Bronte Taylor is a mental health therapist who works to support mothers, her area’s of specialisations are in postpartum mental health, motherhood experiences and trauma.
(Thornbury and Telehealth available)
Got questions? We've got you!
Navigating PPL as a sole trader is genuinely complex, but you don't have to figure it out alone. Bramble & Briar specialises in small business accounting and we work with self-employed Melbourne parents every day.