Australian families preparing to welcome a new child in mid-2025 will soon benefit from enhanced Centrelink Parental Leave Pay, as key updates will take effect beginning July 1, 2025.
These adjustments are designed to boost support for new parents, providing more paid leave days and additional financial benefits.
Expanded Paid Leave Coming July 2025
From July 1, 2025, the Parental Leave Pay entitlement will increase from 110 days to 120 days, translating to 24 weeks of financial support. This change applies to families with a child born or adopted on or after this date.
| Period of Birth/Adoption | Parental Leave Pay Days | Weeks of Support | Estimated Extra Benefit |
|---|---|---|---|
| July 1, 2024 – June 30, 2025 | 110 days | 22 weeks | N/A |
| July 1, 2025 onwards | 120 days | 24 weeks | $1,831.60 (minimum) |
| From July 1, 2026 | 130 days | 26 weeks | To be announced |
With the current daily rate at $183.16, the 10 extra days amount to an additional $1,831.60, which may increase further if the minimum wage is revised upward on July 1, 2025.
How the Extra Days Are Applied
Parents who file a pre-birth claim before July 1 will initially see 110 days allocated. However, if the child is born or adopted on or after July 1, Services Australia will automatically update the balance to 120 days. Families don’t need to reapply for the extra support.
This automated update ensures a seamless experience for eligible parents, helping them focus on their newborns instead of paperwork.
Eligibility Criteria for Parental Leave Pay
To qualify for Parental Leave Pay, applicants must meet the following:
Work Test
- Worked at least 10 of the 13 months before birth or adoption.
- Logged a minimum of 330 hours – roughly one day per week.
Income Test
- Individual annual income must be below $175,788 (for the 2023–24 financial year).
- If not, the family income test may apply, with a higher cap of $364,350.
Residency Requirements
- Must be an Australian citizen, permanent resident, or hold an eligible visa.
- Some new arrivals may need to wait up to two years before accessing the payment.
How Much Will You Receive?
As of now, the Parental Leave Pay rate is:
- $183.16 per day before tax
- $915.80 per five-day week
With the increase to 120 days, families stand to gain at least $1,831.60 more, depending on the future wage rate. This makes the total value of Parental Leave Pay even more impactful for household budgeting during early parenthood.
Upcoming Enhancements for 2025–26
In addition to more paid days, the Australian Government is introducing further changes:
- Superannuation Contributions: Starting July 1, 2025, superannuation will be paid on Parental Leave Pay, strengthening long-term financial security, especially for women.
- Partner Leave Sharing: Families can now transfer up to 15 days of paid leave to their partner (up from 10), encouraging flexible caregiving roles.
- Tax Obligations: Parental Leave Pay remains taxable income and must be declared in the annual tax return.
With the new Centrelink Parental Leave Pay changes effective July 1, 2025, Australian families can look forward to more time at home with their newborns and stronger financial support.
The extra 10 days, super contributions, and partner-sharing flexibility represent a significant step forward in supporting modern families. Be sure to review your eligibility early and submit your claim in time to enjoy these benefits stress-free.
FAQs
Do I need to reapply to get the extra 10 days after July 1?
No, if your child is born or adopted on or after July 1, 2025, Services Australia will automatically increase your leave from 110 to 120 days.
When should I apply for Parental Leave Pay?
You can submit your claim up to 3 months in advance of your expected due date or adoption date.
Will this increase affect payments before July 1, 2025?
No, only children born or adopted on or after July 1, 2025, qualify for the extended 120-day benefit.