Australia’s Parental Leave Pay is increasing from 110 to 120 days from July 1, 2025, giving eligible families an extra $1,831 in support payments. Get Ready for a $1,833 Centrelink Rise this is great news for aussies.
Australian families are set to receive additional financial support through significant changes to the Parental Leave Pay system. If you’re expecting a baby or planning to adopt a child, these upcoming modifications could mean hundreds of extra dollars in your pocket during those precious early months with your new family member.
What’s Changing with Parental Leave Pay?
The Australian government has announced substantial improvements to the Parental Leave Pay scheme that will directly benefit families across the country. These changes represent the government’s commitment to supporting parents during one of life’s most important transitions.
Currently, parents with children born after July 1, 2024, can access 110 days (equivalent to 22 weeks) of Parental Leave Pay. However, a significant boost is on the horizon that will provide additional financial breathing room for new families.
Starting from July 1, 2025, the maximum entitlement will increase to 120 days or 24 weeks of payments. This represents an additional 10 days of support, translating to an extra $1,831.60 for eligible families based on current payment rates.
But the improvements don’t stop there. The government has planned another increase for July 1, 2026, when the entitlement will expand further to 130 days or 26 weeks total.
Understanding Your Payment Amounts
The current daily rate for Parental Leave Pay is $183.16 before tax, which equals $915.80 for a standard five-day working week. These rates are tied to Australia’s national minimum wage, so they may increase when wage rates are reviewed.
The additional 10 days of payment from the July 2025 changes means eligible parents will receive at least $1,833.60 more in total support. This extra money can make a real difference when you’re adjusting to life with a new baby and managing the associated costs.
Parental Leave Pay Rate Structure
| Payment Period | Days Available | Weekly Amount | Total Potential Payment |
|---|---|---|---|
| Current (2024-25) | 110 days | $915.80 | $20,149.60 |
| From July 2025 | 120 days | $915.80 | $21,981.20 |
Who Can Access These Benefits?
Not everyone automatically qualifies for Parental Leave Pay. The system includes several important eligibility criteria designed to support working parents who need time off to care for their new children.
Income Requirements
The income test examines your earnings from either the financial year before your child’s birth or adoption date, or when you submit your claim. For the 2023-24 financial year, your individual income cannot exceed $175,788.
If you don’t meet the individual income requirements, there’s still hope through the family income test, which has a higher threshold of $364,350 for combined family income.
Work History Requirements
The work test ensures that parents receiving payments have a genuine connection to the workforce. You must have been employed for at least 10 months out of the 13 months before your child arrives.
Additionally, you need to have worked a minimum of 330 hours during that 10-month period. This works out to approximately one day per week, making the requirement achievable for many part-time and casual workers.
Residency Status
To be eligible, you must meet one of these residency requirements:
- Hold Australian citizenship
- Have a permanent visa
- Possess a Special Category visa
- Hold certain temporary visas (such as partner provisional or temporary protection visas)
Most newly arrived residents will need to wait up to 2 years before becoming eligible for this payment.
How the New System Works
Services Australia has simplified the transition process for families. If you submit a claim before July 1, 2025, you’ll initially receive 110 days of payments. However, once you provide proof that your child was born or adopted on or after July 1, 2025, an additional 10 days will automatically be added to your balance.
The beauty of this system is that you won’t need to submit a new claim – the extra days will be added automatically once the birth or adoption is confirmed.
Partner Sharing Options
Parental Leave Pay recognizes that both parents may want to take time off work. If you have a partner, you can share some of your payment days with them.
Currently, you can transfer up to 10 days to your partner. This will increase to 15 days from July 1, 2025, providing even more flexibility for families to arrange their care responsibilities.
Single parents will continue to receive all available payment days themselves.
Important Financial Considerations
Taxation and Superannuation
Parental Leave Pay is considered taxable income, so you’ll need to pay tax on the amount received and declare it on your annual tax return. This is important to remember when budgeting and planning your finances.
Starting from the next financial year, there’s good news on the superannuation front. The Australian Taxation Office will begin making superannuation contributions on your Parental Leave Pay, helping to boost your retirement savings during this period away from work.
Multiple Children
If you’re expecting twins, triplets, or more, it’s important to understand that you can only receive Parental Leave Pay for one child per birth, regardless of how many children are born.
Applying for Your Payments
You can submit your Parental Leave Pay claim up to 3 months before your expected due date or adoption date. This early application process helps ensure your payments are ready to begin when you need them most.
Services Australia recommends applying early to avoid any delays in receiving your first payment. You’ll need to register your child’s birth with your state or territory authority as part of the process.
Frequently Asked Questions
Q: When exactly do the new payment amounts start?
The increased 120-day entitlement begins for children born or adopted from July 1, 2025.
Q: Do I need to reapply if I’m already receiving payments?
No, if your child is born after July 1, 2025, the extra 10 days will be added automatically to your existing claim.
Q: Can both parents receive Parental Leave Pay at the same time?
No, only one parent can receive the payment at a time, but you can share days between partners.
These changes to Parental Leave Pay represent a significant investment in Australian families. The increases acknowledge the real costs associated with caring for a new child and the importance of giving parents adequate time to bond with their children without severe financial stress.
With the planned increase to 130 days in 2026, the government is demonstrating a long-term commitment to supporting working parents. These changes will help thousands of Australian families during one of the most important periods of their lives.
The extra $1,831.60 might seem modest in the context of raising a child, but for many families, it represents crucial support during a time when household income is reduced and expenses are increasing.
Whether you’re currently expecting, planning a family, or considering adoption, these changes to Parental Leave Pay are designed to provide meaningful support when you need it most. Make sure to stay informed about the latest requirements and application processes through Services Australia to maximize your family’s entitlements.
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