Centrelink Payment Boost of $1,831 Coming Soon- ‘You’ll Receive More Within Weeks’
Starting July 1, 2025, Services Australia is implementing changes to the Parental Leave Pay (PLP) scheme, increasing the number of paid leave days for eligible caregivers.
If your child was born or adopted after July 1, 2024, you may qualify for up to 120 days (24 weeks) of government-funded leave—an increase from the current 110 days (22 weeks).
However, this extended leave is only available if the child is born or adopted on or after July 1, 2025, which marks the beginning of the new financial year. Claims made before this date will remain under the 110-day limit.
“You can lodge a claim up to three months before your expected date of birth or adoption,” Services Australia clarified.
“If you claim before July, the maximum available will be 110 days.”
What’s Changing and When?
| Timeframe | Maximum Days of Paid Leave | Equivalent Weeks |
|---|---|---|
| Current (post-July 1, 2024) | 110 days | 22 weeks |
| From July 1, 2025 | 120 days | 24 weeks |
| From July 1, 2026 | 130 days | 26 weeks |
These incremental increases aim to better support working families during the early stages of parenthood.
Parental Leave Pay Eligibility Criteria
To qualify for Parental Leave Pay, you must satisfy a combination of work, income, and residency requirements, along with ensuring your child’s birth or adoption is officially registered.
1. Income Requirements
- You must not have earned over $175,788 in the 2023–2024 financial year.
- If you exceed this limit, you may still qualify under the Family Income Test, which has a threshold of $364,350.
2. Work Test
- Must have been employed for at least 10 of the 13 months prior to the child’s birth or adoption.
- A minimum of 330 hours of work during that period is required, equating to roughly 1 day per week.
3. Residency Rules
You need to be:
- An Australian citizen, OR
- Hold a permanent visa, Special Category visa, or certain temporary visas (like partner provisional or temporary protection visas).
Note: New residents might face a 2-year waiting period before accessing these benefits.
Payment Rates and Super Contributions
Current Rate of Pay
- $183.16 per day (before tax)
- $915.80 for a standard five-day week
This is calculated based on the national minimum wage, which is set to increase from July 1, 2025.
Increasing PLP days from 110 to 120 equates to an additional $1,831.60 for eligible parents.
While future rate adjustments haven’t been officially announced, any changes in the minimum wage will directly influence PLP payments.
Claiming for Multiple Births or Shared Leave
- Parents of twins or triplets can only claim PLP for one child.
- Single parents are entitled to use the full number of paid days.
- Partners can be allocated PLP days. Currently, 10 days can be transferred; this increases to 15 days from July 1, 2025.
Tax and Superannuation Considerations
- PLP is taxable, and must be declared in your tax return.
- Beginning next financial year, the Australian Taxation Office (ATO) will make superannuation contributions on your behalf for the duration of your Parental Leave Pay.
Pre-Birth Claims and Adjustments
If you submit a claim before July 1, 2025, you’ll initially receive 110 days of leave. Once proof of birth or adoption confirms the child’s arrival post-July 1, 10 extra days will be automatically added to your leave—no need to reapply.
The 2025–2026 updates to Parental Leave Pay represent a meaningful expansion of support for Australian families, increasing the available paid leave to 120 days and introducing super contributions for the first time.
Make sure to lodge your claim at the right time, verify your income and work eligibility, and be aware of the tax implications. These evolving changes aim to ease the financial stress on new parents, promoting a healthier start for growing families.
FAQs
Can I still get Parental Leave Pay if I’m not currently working?
You must meet the work test, meaning you must have worked 10 out of the last 13 months before the birth or adoption, even if you’re not employed currently.
Is Parental Leave Pay affected if I have twins or triplets?
Yes, even in the case of multiple births, only one payment per birth event is allowed.
Do I need to lodge a new claim for the extra 10 days if my child is born after July 1, 2025?
No. If your claim was submitted earlier and proof of birth confirms eligibility, 10 days will be added automatically.