In a move to support new parents, Centrelink is set to increase the number of paid parental leave days available to families, making a significant change starting July 1. This change could mean an extra $1,800 for parents taking time off to care for their newborns or newly adopted children.
What’s Changing with Paid Parental Leave?
From July 1, Centrelink will extend the current paid parental leave from 120 days to 130 days, which works out to 26 weeks. If you’re calculating, that’s an extra $1,896.20 on top of what parents were already receiving. This change is part of the government’s phased plan to increase parental leave, which started in 2024 with a two-week bump each year.
This new entitlement will apply to children born or adopted after July 1, 2026. If your child is born before this date, you’ll still be entitled to the 120-day leave. But for those who miss out on the upcoming change, there’s still hope—parental leave for the other partner will also increase from 15 to 20 days starting on July 1.
Eligibility and the Income Test
Now, before you start planning that six-month break from work, let’s get into the eligibility side of things. To qualify for Parental Leave Pay, you’ll need to pass two key tests: the income test and the work test.
For the income test, if you’re an individual, you can’t have earned more than $180,007 during the financial year before your child’s birth or adoption. If you don’t meet that, don’t worry—there’s also a family income test for those with higher household earnings (currently capped at $373,094), explains Yahoo Finance.
The work test is a bit simpler. To pass, you need to have worked at least 10 of the 13 months before your baby’s arrival and completed a minimum of 330 hours of work. If you’re keeping track, that’s roughly one full day of work a week.
How Much Will You Get?
So, what’s the cash side of things? Parents will receive $189.62 per day, which comes out to $948.10 per week for the 130 days. It’s based on the national minimum wage, which is set to rise from July 1. The best part? Superannuation is also paid on the parental leave, giving your future retirement savings a boost during those months off.
More Time, More Money, More Flexibility
This is great news for Aussie parents juggling family life and financial pressures. The extra 10 days of leave means more time with your little one, and the extra money helps ease the financial strain during a time when many families are adjusting to a new routine. The government’s move to increase paid parental leave helps level the playing field, giving parents the support they need without the financial worry.
So, whether you’re planning for a new addition or you’re preparing for an adoption, mark your calendar for July 1, when these changes kick in. More time, more money, and hopefully, a little less stress.
