Sam
Starting July 1, 2025, Australian families welcoming a new child will benefit from an expanded Centrelink Parental Leave Pay scheme.
The government has announced a 10-day increase in paid leave, giving eligible parents additional financial support during the crucial early stages of parenting.
Expanded Paid Leave Coming in July 2025
Under the upcoming Services Australia policy revision, the current entitlement of 110 paid leave days will rise to 120 days (24 weeks).
This upgrade could result in an extra $1,831.60 in benefits for eligible parents, based on the existing national minimum wage.
This adjustment applies to children born or adopted on or after July 1, 2025, and reflects the government’s continued commitment to supporting working families and primary caregivers during early parenthood.
Eligibility Criteria for Parental Leave Pay
To qualify for the increased Parental Leave Pay, applicants must meet the following conditions:
| Requirement | Details |
|---|---|
| Work Test | Must have worked for 10 out of the 13 months before the birth/adoption and completed at least 330 hours (about 1 day per week). |
| Income Threshold | Annual individual income must be under $175,788 for FY 2023–24. If not, the family income test applies, with a higher limit of $364,350. |
| Residency Status | Must be an Australian citizen, permanent resident, or hold a qualifying visa. Some newcomers may have a waiting period of up to two years. |
How to Receive the Extra 10 Days
If a pre-birth claim is filed before July 1, 2025, Services Australia will initially allocate 110 leave days. After confirmation of a child’s birth or adoption date, the system will automatically add 10 days, bringing the total to 120 – no need to submit a new claim.
This streamlined approach ensures timely access to extra benefits without additional paperwork.
Current Payment Rates and Future Increases
As of now, Parental Leave Pay is calculated using the national minimum wage:
- $183.16 per day before tax
- $915.80 per standard five-day week
With the 10-day increase, families will receive at least $1,831.60 more starting July 2025.
Additionally, since the minimum wage is expected to rise on July 1, payments may increase further.
Upcoming Enhancements in 2025–26
From July 1, 2025, several new features will further strengthen the parental support system:
- Superannuation Contributions: Parental Leave Pay will now include super contributions, improving long-term savings and particularly benefiting women.
- Increased Partner Sharing: Up to 15 days of Parental Leave Pay can be transferred to a partner, up from 10 days – ideal for co-parenting and dual-income families.
- Taxable Income Notice: All Parental Leave Pay is subject to tax and must be reported in your annual return.
These additions provide more financial flexibility and security for Australian households.
Planning Ahead for July 2026: Even More Support
The scheme will expand once again in July 2026, increasing the entitlement to 130 days (26 weeks). This future change is part of a long-term strategy to build a family-friendly welfare system across Australia.
What Should Families Do Now?
Families are encouraged to submit their Parental Leave Pay claims up to three months in advance of the expected birth or adoption date. This helps avoid delays and ensures access to the enhanced benefits.
Check your eligibility and lodge your claim via the official Services Australia website.
The upcoming Centrelink Parental Leave Pay increase marks a significant boost for Australian families planning for a new addition in mid-2025 and beyond.
With 10 extra paid days worth over $1,800, plus added super contributions and partner sharing benefits, this program enhances financial support and work-life balance.
Families are advised to act early and prepare their documentation in advance to take full advantage of these changes.
FAQs
Will I need to submit a new application to get the extra 10 days?
No. If your child is born or adopted on or after July 1, 2025, the system will automatically add the 10 days to your claim.
Is Parental Leave Pay considered taxable income?
Yes, the payments are taxable and must be declared in your annual tax return.
Can both parents access the leave?
Yes, families can share leave, with the updated policy allowing 15 transferable days to a partner.