Big changes are coming to Centrelink parental leave payments from 1 July 2025. Learn who benefits, new payment rates, eligibility rules, and what action you need to take.
Modern life is unpredictable, especially when you’re growing your family. If you’re expecting a new child or planning to adopt, important updates to the Centrelink Parental Leave Pay scheme will soon affect how much financial support you receive. Here’s a clear breakdown of what’s changing, who it benefits, and how you can make sure you get the most from the 2025 policy update.
What’s Changing for Parental Leave Pay in July 2025
Families and caregivers in Australia who take time off work to care for a newborn or newly adopted child can apply for Centrelink’s Parental Leave Pay scheme. This gives eligible parents paid time off from work, so they can focus on what matters most—family.Increased Duration of Paid Leave
Starting 1 July 2025, if your child is born or adopted on or after this date, you’ll be eligible for a longer paid leave period.
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The previous entitlement: 110 days (22 weeks)
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New entitlement: 120 days (24 weeks)
That means two more weeks of income for parents during a period that can be financially and emotionally demanding.
Who Is Eligible for the Extra Days?
You must show proof your child was born or adopted from 1 July 2025 onwards to get the new 120-day balance. If you submit your claim before that date for a baby born earlier, you remain eligible for the old 110-day maximum.
Services Australia automatically updates your leave balance if you meet the new criteria. No new application is needed—just proof of birth or adoption.
Parental Leave Pay Rates and How Much You Could Get
How Much Is Paid Parental Leave Worth?
The current daily rate is $183.16 before tax, or $915.80 per typical five-day week. This amount is based on Australia’s national minimum wage, which is due to rise again from 1 July 2025. With the new scheme, parents will pocket up to $1,831 more during their leave period.
Here’s how payments add up for each scheme:
| Scheme Start Date | Eligible Days | Weeks | Total before Tax (approx.) |
|---|---|---|---|
| Before 1 July 2025 | 110 | 22 | $20,149 |
| On/After 1 July 2025 | 120 | 24 | $21,978 |
(Estimates based on $183.16/day rate)
When Do Parental Leave Rates Increase Again?
An additional boost is scheduled for July 2026, taking the entitlement up to 130 days (26 weeks)—equivalent to six months of paid leave.
Understanding Eligibility—Income, Work & Residency Rules
Who Can Get Parental Leave Pay?
You may qualify for Paid Parental Leave if you:
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Are caring for a newborn or recently adopted child from 1 July 2025
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Have worked at least 10 of the 13 months before your child’s entry into care, totalling a minimum of 330 hours (around one day per week)
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Are not working during the payment period
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Are an Australian citizen, hold a permanent visa, Special Category visa, or certain temporary visas
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Register the child’s birth/adoption with your State/Territory authority.
Income limits:
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Individual: up to $175,789
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Family: up to $364,352 in the previous financial year
If you exceed the personal limit but don’t meet the work test, the family income test might be your fallback.
Residency wait: New migrants may need to wait up to 2 years to qualify.
What Else Is New? Superannuation Contributions & Flexibility
Superannuation on Paid Parental Leave
For the first time, starting July, the federal government will pay superannuation on your paid parental leave. This helps boost your retirement savings and ensure financial security for parents long-term.
More Flexibility: Sharing or Transferring Leave
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Single parents can use all paid days themselves.
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With two parents, some paid leave days are transferable. Previously 10 days could be transferred; this rises to 15 days from 1 July 2025.
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Days can be used together or split, and across two years, allowing families to customize how their leave fits into their lives.
Indexation and Cost of Living Adjustments
Payments Rise with the National Wage
Centrelink family and parental leave payments are indexed—which means they’re reviewed and increased each year to align with changes in the national minimum wage and cost of living. Expect more modest increases (about 2.4%) from 1 July 2025 for many Centrelink payments.
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National minimum wage: rises to $24.95/hour ($948/week
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Family Tax Benefit A (per child under 13): rises to $227.36/fortnight, for children 13+: $295.82/fortnight
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Maximum Family Tax Benefit B: $193.34/fortnight, or $134.96 if youngest child is five or over
How to Claim & Maximize Your Benefit
Step-by-Step Guide for Parents
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Apply Early: You can submit a claim up to three months before your child’s expected birth/adoption.
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Check Eligibility: Make sure you meet work, income, and residency requirements.
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Confirm Income: Submit your completed tax return on time to the Australian Tax Office, or notify Centrelink if you don’t need to lodge.
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Update Details: Keep your bank details and personal info current via your myGov account.
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Provide Proof: Once your child arrives, send proof of birth/adoption to Services Australia.
Automatic Boosts—No Action Needed for the Increase
If you’ve already lodged a claim and your child is born/adopted after 1 July 2025, Centrelink will automatically increase your paid leave days from 110 to 120. No new claim is required, just the correct paperwork.
Key Benefits of the Parental Leave Changes
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More weeks at home for parents and new children—easing family transitions
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Higher total support: up to $1,831 extra over your leave
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Superannuation contributions help parents’ long-term financial security
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Flexible leave arrangements for diverse family settings
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Income and work tests now more accessible, so more families qualify
Things to Watch Out For
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Payment rates quoted here are before tax; you’ll need to declare them on your tax return.
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The increase applies only for claims where the baby/child arrives from 1 July 2025 onwards.
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If you miss confirming your income, you may miss out on your entitlement or have to repay any overpayments.
Two-Column Table: Centrelink Paid Parental Leave Scheme Data
| Feature | Before 1 July 2025 | On/After 1 July 2025 |
|---|---|---|
| Maximum paid leave | 110 days (22 weeks) | 120 days (24 weeks) |
| Approx. total support | $20,147 | $21,979 |
| Daily rate (before tax) | $183.16 | To be indexed July 2025 |
| Transferable leave days (partner) | 10 days | 15 days |
| Super on paid leave | No | Yes |
| Next scheduled increase | – | 130 days in July 2026 |
FAQs
Q1: How long does it take to receive the new parental leave payment?
Most payments start soon after you provide proof of birth/adoption, as long as you’ve applied in advance and meet the eligibility requirements.
Q2: Will everyone qualify for the new 120-day parental leave?
No, only those whose child is born or adopted on or after 1 July 2025 and meet work, income, and residency requirements.
Q3: Do I need to update my claim for the extra days if my child arrives after July 1, 2025?
No, Centrelink automatically increases your payment days once proof of birth/adoption is received.
If you’re about to become a parent or plan to adopt, these changes offer more time and increased support to focus on your growing family. Make sure to stay informed, confirm your eligibility, and keep your details updated with Centrelink so you don’t miss out on what’s rightfully yours.
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