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Finance Manager Parental Leave Cover: Options and Costs

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When your finance manager goes on parental leave, you are covering a role that Robert Half benchmarks at a $158,050 median salary in Sydney, for up to 12 months, with a legal guarantee that they can come back. Most owners have three to six months' notice and no plan. This guide compares the four ways to keep payroll, BAS and reporting running, including interim finance cover that starts without a recruitment process.

Published: October 2026

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What the law says about parental leave

Under the National Employment Standards, an employee with at least 12 months of continuous service can take up to 12 months of unpaid parental leave, and can ask for up to 12 more. They have a return to work guarantee, which means they come back to their pre-leave role, or a comparable one if that role no longer exists.

Separately, the government's Paid Parental Leave scheme pays eligible parents of children born or adopted from 1 July 2026 up to 26 weeks (130 days) per family at the national minimum wage. Services Australia sets the 2026-27 rate at $1,004.70 for a 5-day week, or up to $26,122.20 over 26 weeks at that rate. That money is government funded. If your employee meets the criteria for an employer determination, you must pay it through payroll, but only after Services Australia has paid the funds to you.

Two more rules shape your cover plan. Your employee can work up to 10 paid keeping in touch days during each 12 months of unpaid leave, by agreement, according to the Fair Work Ombudsman. And anyone you hire to fill the role must be told the job is temporary and that the person on leave has the right to return.

Our guide to parental leave admin for employers covers the payroll side in more detail.

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Option 1: A fixed-term replacement hire

This is the default choice. You advertise a 12-month contract, interview and hand over.

At the Robert Half Sydney median of $158,050, plus 12% super of $18,966, a 12-month replacement costs about $177,016 before recruitment fees, equipment and your own time.

The catch is the hiring market. Strong finance managers often prefer permanent roles, so fixed-term ads can draw fewer applicants. If the search runs long, the leave starts before anyone is in the seat. Our guide to the cost to hire a finance manager breaks down recruitment costs, and the recruitment fees calculator shows what an agency will charge.

Best for: businesses with a long lead time and a role that needs one person on site every day.

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Option 2: A temp or contractor through an agency

A temp can start quickly and you can end the arrangement with short notice. You pay an hourly or daily rate that includes the agency's margin, so the cost per hour is usually higher than a salaried employee at the same level.

The bigger risk is continuity. Temps often move on to permanent roles, and each new face needs a fresh handover of your systems, suppliers and month-end routine.

Best for: short gaps of a few weeks, or as a bridge while a fixed-term hire is found.

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Option 3: Spread the work across the team

This looks free. It rarely is. The bookkeeper picks up payroll, the owner signs off BAS, and management reports stop.

The costs show up later: a missed super payment under Payday Super, a late BAS, or a bank asking for management accounts you have not produced in six months. Since 1 July 2026, super must reach each employee's fund within 7 business days of payday, so payroll cannot wait for someone to find the time.

Best for: very small finance functions where the person on leave did a limited set of tasks.

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Option 4: Interim outsourced cover

An outsourced finance team takes over the role's work for the length of the leave. The team works in your Xero, payroll system and bank feeds, follows your month-end calendar and reports to you.

Scale Suite's interim finance cover runs as a rolling monthly engagement, typically $2,500 to $6,000 per month depending on scope, entity count and payroll headcount. Even at $6,000 a month, 12 months comes to $72,000, against about $177,016 for a fixed-term hire at the median salary.

There is no lock-in, so cover can end when your employee returns, or shrink to a smaller support role if they come back part-time. Use the hire vs outsource calculator to compare it with your own salary figures.

Best for: businesses that need cover to start in weeks, not months, and want the work documented for the employee's return.

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How to plan the handover

Whichever option you pick, start the handover at least six weeks before the leave begins. Cover these points:

  1. A month-end checklist with dates, owners and system logins held in a password manager
  2. Payroll calendar, super deadlines and any award or enterprise agreement rules
  3. BAS and IAS due dates, plus ATO and state revenue office access
  4. Supplier payment runs and approval limits
  5. Bank, lender and investor reporting commitments
  6. Open issues, such as disputes, audits or system changes

If your finance manager is leaving permanently rather than taking leave, our 30-day plan for when your finance manager resigns covers that situation.

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Planning for the return

The return to work guarantee means your cover plan needs an end date and a handback. Use keeping in touch days for system changes, planning sessions or training. If your employee asks to come back part-time, they may be able to request a flexible working arrangement under the Fair Work Act, so think about how the remaining work will be covered.

This is where outsourced cover has an edge. A team that has run your finance function for 12 months can hand back clear documentation and keep doing the tasks your returning employee no longer has time for.

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FAQ

How long can a finance manager take parental leave in Australia?

An eligible employee can take up to 12 months of unpaid parental leave under the National Employment Standards and can request up to 12 more. The employer can only refuse the extension on reasonable business grounds.

Do I have to keep my finance manager's job open while they are on parental leave?

Yes. Eligible employees have a return to work guarantee. They return to their pre-leave role, or to a comparable available role if their old job no longer exists.

Who pays Paid Parental Leave?

The government funds it. For children born or adopted from 1 July 2026, it is paid at $1,004.70 for a 5-day week for up to 26 weeks per family. Where the employee meets the employer determination criteria, the employer pays it through payroll after receiving the funds from Services Australia.

Can I hire a replacement on a fixed-term contract?

Yes. You must tell the replacement that the role is temporary and that the person on leave has the right to return to it.

How much does it cost to replace a finance manager for 12 months?

At the Robert Half Sydney median salary of $158,050 plus 12% super, a fixed-term hire costs about $177,016 before recruitment fees and equipment.

What are keeping in touch days?

They are paid days an employee can work during unpaid parental leave, by agreement, to stay connected. The limit is 10 days for each 12-month period of unpaid leave.

Is outsourcing cheaper than hiring cover for parental leave?

Usually, when the role covers bookkeeping, payroll, BAS and reporting. Scale Suite's interim finance cover typically runs at $2,500 to $6,000 per month on a rolling monthly basis, with no lock-in.

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Need cover in place before the leave starts?

Book a 30-minute call at calendly.com/scalesuite/30min. We will map your finance manager's tasks, set a start date and give you a fixed monthly fee for the length of the leave.

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About Scale Suite

Scale Suite is a Sydney-based provider of outsourced finance teams and fractional CFO services for Australian SMEs. We deliver weekly bookkeeping, payroll, BAS/IAS lodgement, cashflow reporting, management accounts, and strategic fractional CFO oversight, all as a fully embedded team that works inside your business.

CA-qualified, Xero Certified, and registered BAS Agents, we replace fragmented bookkeepers and once-a-year accountants with one responsive finance function at a fraction of the cost of full-time hires. We serve growing businesses across Sydney, Melbourne, Brisbane, Perth, and Adelaide, with packages starting from $1,500 per month and no lock-in contracts.

Visit Scale Suite | View Our Finance Services | View Our HR Services | Get Your Free Proposal

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Disclaimer

We review and check this guide periodically. At the time of writing (October 2026), all information was current. Scale Suite is a registered BAS Agent, not a licensed tax advisor or financial advisor. This content is general information only and does not constitute professional tax, financial, or legal advice. Some details may change over time.

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Sources

All figures as at October 2026. Salary figures are base salary, ex super. Scale Suite fees are ex GST.

About Scale Suite

Scale Suite is a Sydney-based provider of outsourced finance and HR services for Australian SMEs. We deliver bookkeeping, financial reporting, payroll processing, fractional CFO support, recruitment, employee onboarding, people and culture support, and fractional HR oversight, all as a fully embedded team that works inside your business.

Employment Hero Gold Partner, CA-qualified, and Xero Certified, we replace fragmented finance and HR processes with one responsive, senior-level function at a fraction of the cost of full-time hires. We serve growing businesses across Sydney, Melbourne, Brisbane, Adelaide, and Perth, with packages starting from $1,500 per month and no lock-in contracts.

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