If you or someone you love is expecting a new addition to the family, there’s some good news on the horizon.
Centrelink’s Parental Leave Pay is about to get a significant boost, putting more money in the pockets of Aussie parents and caregivers.
Here’s everything you need to know about the upcoming changes, who’s eligible, and how you can make the most of this government support.
What’s changing and when?
From 1 July this year, the maximum number of days you can receive Parental Leave Pay will increase from 110 days (22 weeks) to 120 days (24 weeks).
That’s an extra two weeks of paid support, which translates to at least $1,831.60 more in your bank account, based on the current daily rate.
And if you’re already planning ahead, the government has announced another increase is coming in July 2026, bumping the total up to 130 days (26 weeks).
But there’s a catch: to qualify for the extra days, your child must be born or adopted on or after 1 July 2025. If you claim before July, you’ll still be eligible for the current 110 days. So, if you’re expecting a mid-year arrival, timing could make a real difference to your family’s finances.
How does parental leave pay work?
Parental Leave Pay is designed to help families and caregivers who take time off work to care for a newborn or newly adopted child.
The payment is based on the national minimum wage, which is also set to increase from 1 July, so the actual amount you receive could be even higher than the current rate.
At present, the daily rate is $183.16 before tax, or $915.80 for a standard five-day week. With the increase to 120 days, that’s a minimum of $21,979.20 in total support for eligible parents.
Eligibility: Are you in the running?
To receive Parental Leave Pay, you’ll need to tick a few boxes:
Income Test: For the 2023-24 financial year, your individual income must be less than $175,788. If you don’t meet this, there’s a family income test with a higher threshold of $364,350.
Work Test: You must have worked for at least 10 of the 13 months before your child’s birth or adoption, and clocked up at least 330 hours in that period (about one day a week).
Residency Rules: You need to be an Australian citizen, hold a permanent visa, a Special Category visa, or certain temporary visas (like a partner provisional or temporary protection visa). Most new residents will have a two-year waiting period.
Not Working During Payment: You can’t be working on the days you receive Parental Leave Pay.
Registering the Birth: You must register your child’s birth with your state or territory authority.
How to claim – and when
You can submit your claim up to three months before your expected due date or adoption date. If you lodge your claim before 1 July 2025, you’ll initially be granted 110 days.
But don’t worry—if your child is born or adopted after 1 July, Services Australia will automatically top up your balance to 120 days once you provide proof of birth or adoption. No need to submit a new claim.
What if you have twins or triplets?
Unfortunately, even if you have multiple children in one birth or adoption event, you can only receive Parental Leave Pay for one child. It’s a one-payment-per-family policy, so plan accordingly.
Sharing the love: Partnered parents
If you have a partner, you can share your Parental Leave Pay days. Currently, you can transfer up to 10 days to your partner, but from 1 July, that increases to 15 days. This flexibility can help both parents spend precious time with their new arrival.
Single parents: All yours
If you’re a single parent, you get to use the full allocation of Parental Leave Pay days yourself—no need to share.
Superannuation and tax: What you need to know
Starting next financial year, the Australian Taxation Office will make a superannuation contribution on your Parental Leave Pay. This is a welcome change, helping to boost your retirement savings while you’re caring for your little one.
Remember, Parental Leave Pay is a taxable payment. You’ll need to declare it on your tax return, and the amount you receive will be subject to income tax.
Looking ahead: More increases on the way
The government has already flagged another increase to Parental Leave Pay in July 2026, when the maximum will rise to 130 days (26 weeks). This ongoing support is part of a broader push to help Australian families balance work and caring responsibilities.
Have your say!
Are you planning to claim Parental Leave Pay? Do you think the changes go far enough to support Aussie families?
Have you navigated the Centrelink system recently and have tips to share? We’d love to hear your experiences and thoughts in the comments below.
And if you have a story or question about Centrelink, superannuation, or any other financial topic, let us know! Your insights could help others in the community.
Also read: Fake news alert: ATO sets the record straight on 1 June rule changes
T’is only fair as Super is a tax haven.
This really isn’t relevant to your supposed target audience, people over 50!