Amy
A significant Centrelink payment change is just around the corner, bringing financial relief to many new parents across Australia. Starting July 1, 2025, the Parental Leave Pay will increase from 110 to 120 days, resulting in a boost of approximately $1,831.60.
This adjustment reflects Australia’s efforts to support families during early childcare and will benefit thousands of eligible individuals.
Let’s break down the new updates, eligibility requirements, and what this means for your family’s budget.
What’s Changing in Centrelink’s Parental Leave Pay?
Currently, if your child was born or adopted after July 1, 2024, you’re entitled to 110 days (22 weeks) of Parental Leave Pay. However, from July 1, 2025, this will increase by 10 days, providing 120 days of financial support.
The increase is part of a staged rollout:
- From July 1, 2025: 120 days (24 weeks)
- From July 1, 2026: 130 days (26 weeks)
Important Note: You must provide proof that your child was born or adopted on or after July 1, 2025 to qualify for the increased days.
Parental Leave Pay Changes at a Glance
| Date of Birth/Adoption | Maximum Days | Equivalent Weeks | Extra Amount |
|---|---|---|---|
| Before July 1, 2025 | 110 days | 22 weeks | N/A |
| On/After July 1, 2025 | 120 days | 24 weeks | $1,831.60 |
| On/After July 1, 2026 | 130 days | 26 weeks | To be announced |
How Much Can You Get?
The payment rate is tied to the national minimum wage, currently set at $183.16 per day (before tax) or $915.80 per five-day week.
By increasing from 110 to 120 days, the total payment increases by 10 days, which equates to:
$183.16 × 10 = $1,831.60 (before tax)
This amount will vary based on your work schedule and applicable taxes.
Eligibility Criteria for Parental Leave Pay
To receive the updated Centrelink Parental Leave Pay, applicants must meet the following conditions:
1. Work Test
- Employed for 10 of the 13 months before the birth or adoption
- Must have worked 330 hours in total during that period (≈1 day/week)
2. Income Test
- Earned less than $175,788 in the financial year before the child’s birth/adoption
- Alternatively, under the family income test, combined income must not exceed $364,350
3. Residency Requirements
You must have:
- Australian citizenship, or
- A permanent visa, Special Category visa, or certain temporary visa
Note: New residents may have a 2-year waiting period before qualifying.
Partner Sharing and Superannuation Inclusion
If you have a partner, you can share your Parental Leave Pay:
- Currently, 10 days can be transferred
- From July 1, 2025, this increases to 15 days
Also, from the new financial year, the Australian Taxation Office (ATO) will contribute to superannuation for those receiving Parental Leave Pay — another major support update.
What If You Already Claimed?
If you submit a claim before July 1, 2025, Services Australia will initially grant you 110 days. But once you submit proof of birth/adoption confirming the event occurred on/after July 1, they’ll automatically increase your balance to 120 days — no need to reapply.
Key Takeaways for Single Parents
Single parents are entitled to use all Parental Leave Pay days themselves. If partnered, you can still choose to share a portion with your spouse.
Make sure your child’s birth or adoption is registered, and all necessary documents are submitted on time to benefit from the full payout.
The upcoming $1,831 increase in Centrelink’s Parental Leave Pay marks a valuable improvement for Australian families.
With eligibility based on income, work, and residency, it’s vital to prepare documents early and verify your dates. This change delivers stronger financial support for those starting or growing their families.
FAQs
How do I apply for Parental Leave Pay?
You can submit your claim up to 3 months before your expected due date or adoption. Use myGov to apply through Centrelink.
Do I need to reapply to get the extra 10 days?
No. If your child is born after July 1, 2025, and you already claimed, Centrelink will automatically update your balance to 120 days after receiving proof.
Is Parental Leave Pay taxable?
Yes. This is a taxable income, and it must be declared on your tax return. Ensure proper reporting to avoid discrepancies.