Kim
Centrelink is rolling out a major update to Parental Leave Pay (PLP) starting July 1, 2025, giving eligible Australian families a much-needed financial lift.
The maximum number of paid days will increase from 110 to 120, delivering an extra $1,831.60 to parents caring for a newborn or newly adopted child.
This adjustment is part of ongoing efforts to support growing families and align paid leave with the rising cost of living. The increase comes just a year after the last update and sets the stage for an even larger boost next year.
What’s Changing in 2025?
Here’s a breakdown of the new benefits and how they compare with the current system:
| Category | Current (Until June 30, 2025) | New (From July 1, 2025) |
|---|---|---|
| Maximum PLP Days | 110 days (22 weeks) | 120 days (24 weeks) |
| Total Payment Estimate | $20,147.60 | $21,979.20 |
| Daily Rate (Before Tax) | $183.16 | Subject to wage indexation |
| Partner Shareable Days | 10 days | 15 days |
| Super Contribution | Not included | 12% of PLP payments |
| Next Increase (2026) | N/A | 130 days (26 weeks) |
This change is expected to benefit thousands of new and expecting parents, ensuring they have more paid time to bond with their child without the immediate pressure of returning to work.
How to Qualify for the Extra $1,831
To receive the additional 10 days of PLP, parents must meet all eligibility criteria and ensure their child is born or adopted on or after July 1, 2025. If you lodge your claim before this date, your balance will be limited to 110 days.
Here are the main eligibility rules:
1. Work Test
- You must have worked at least 10 of the 13 months before your child’s birth or adoption.
- A minimum of 330 hours worked in that period is required (roughly one day per week).
2. Income Test
- You must earn $175,788 or less individually in the relevant financial year.
- If you don’t pass the individual test, you may still be eligible under the family income cap of $364,350.
3. Residency Status
- You must be an Australian citizen, a permanent visa holder, or hold a qualifying temporary visa.
- Most newly arrived residents face a two-year waiting period before qualifying.
Claim Timing and Additional Rules
Timing Matters
You can lodge your PLP claim up to 3 months before the expected birth or adoption date. However, if you submit your claim before July 1, you’ll only be approved for 110 days—even if your child is born after the cutoff. Once proof of birth confirms eligibility, the extra 10 days will be added automatically.
Proof of Birth or Adoption
No new claim is needed to get the extra days. Just ensure you provide proof that your child was born or adopted on or after July 1.
Multiple Births
Even if you’re expecting twins or triplets, PLP is only paid for one child.
More Flexibility for Partners
Another important change is in how Parental Leave Pay can be shared. Currently, partnered parents can allocate 10 days to the other caregiver. From July 1, this rises to 15 days, allowing families to tailor leave arrangements based on their needs and work situations.
If you’re a single parent, you retain the full 120 days for yourself.
Superannuation Gets a Boost Too
Starting July 1, a 12% superannuation contribution will be added to all PLP payments. This will enhance long-term retirement savings, especially for mothers who typically experience super gaps due to time off work for caregiving.
This move acknowledges the long-term economic impact of child-rearing and seeks to close the gender retirement gap in Australia.
Tax Implications
It’s important to remember that Parental Leave Pay is taxable. You’ll need to:
- Include it in your tax return
- Pay tax on it based on your marginal tax rate
This payment, although a significant help, should be budgeted with your after-tax income in mind.
What’s Coming in 2026?
The government has already confirmed a future update: from July 1, 2026, PLP will increase again to 130 days or 26 weeks. This extended leave will give parents six months of paid time, reinforcing the support for early childhood development and family bonding.
This $1,831 Parental Leave Pay increase is a big win for Australian families. With longer leave, added flexibility for partners, and super contributions included, it’s a comprehensive boost that puts families first.
If you’re expecting a child soon, make sure your timing, eligibility, and paperwork are in order to maximize this benefit.
FAQs
What is the new maximum number of Parental Leave Pay days from July 1, 2025?
The new maximum will be 120 days, up from the current 110 days.
How do I get the extra $1,831 from Centrelink?
Ensure your child is born or adopted on/after July 1, 2025, and meet the work, income, and residency eligibility criteria.
Can I share Parental Leave Pay with my partner?
Yes. Starting July 1, you can allocate up to 15 days of your PLP to your partner.