Centrelink Parental Leave Payment 2025- Up To 24 Weeks Paid Leave, Eligibility Rules & Application Steps Explained

Centrelink Parental Leave Payment 2025- Up To 24 Weeks Paid Leave, Eligibility Rules & Application Steps Explained

In 2025, Australia’s Parental Leave Pay (PLP) has undergone significant updates to provide stronger financial support for new parents.

Managed by Centrelink, the scheme now allows eligible caregivers to receive up to 24 weeks (120 days) of paid leave, with plans to extend this to 26 weeks by July 2026.

Additionally, a 12% superannuation contribution on PLP begins from July 1, 2025, helping parents secure better retirement outcomes, particularly women who typically face superannuation gaps after time off work.

These enhancements reflect the government’s commitment to promoting gender equality, improving work-life balance, and offering meaningful financial support to families during a life-changing period.

Key Features of Parental Leave Pay 2025

AspectDetails
Leave DurationUp to 24 weeks (120 days) in 2025; increases to 26 weeks by July 2026
Superannuation12% contribution starts from July 1, 2025
Payment Rate$183.16/day (based on national minimum wage as of July 2024)
Eligibility CriteriaWork test, income test, residency status, and caregiving responsibilities
Partner LeavePartners must take at least 15 days to share care responsibilities
Application TimelineApply up to 3 months before the birth or adoption of the child

Who is Eligible for Centrelink Parental Leave Pay in 2025?

To qualify for PLP, applicants must satisfy the following conditions:

  • Primary Caregiver: Must be the main person caring for the child.
  • Income Test: Annual adjusted taxable income must be $156,647 or less.
  • Work Test: Must have worked for at least 10 of the 13 months before the birth/adoption and completed at least 330 hours.
  • Residency: Must be an Australian resident or meet visa eligibility requirements.
  • Employment Type: Includes full-time, part-time, casual, and self-employed workers.

How Much is the Payment in 2025?

PLP is calculated based on the national minimum wage, which is $183.16 per day as of July 2024.

  • For 24 weeks (120 days) of paid leave:
    $183.16 × 120 = $21,979.20 before tax

This amount is taxable income, and payment is made fortnightly either via the employer or directly from Centrelink.

How to Apply for Parental Leave Pay in 2025?

Here’s a step-by-step guide:

  1. Check Eligibility
    Use Centrelink’s Payment and Service Finder tool.
  2. Notify Employer
    Provide at least 10 weeks’ notice before taking leave.
  3. Prepare Documents
    Include proof of income, work history, residency, and expected or actual date of birth/adoption.
  4. Submit Claim
    Log into myGov and apply under the Centrelink tab.
  5. Receive Payments
    Once approved, payments are issued fortnightly through your employer or Centrelink.

Superannuation on PLP from July 2025

A groundbreaking update starting 1 July 2025 is the inclusion of 12% superannuation on all PLP payments.

  • For example, on a full 24-week payment of $21,979.20:
    Super contribution = 12% = $2,637.50

This addition helps close the retirement savings gap, especially for mothers who take extended time off.

Mistakes to Avoid During Application

  • Missing the Work Test: Ensure all 330 required work hours are completed.
  • Delaying Applications: Submit early (up to 3 months in advance).
  • Incorrect Documentation: Cross-verify all records with employment and tax documents.

Supporting Gender Equality

PLP reforms in 2025 aim to:

  • Encourage shared caregiving with mandatory partner leave
  • Enhance women’s financial security with super contributions
  • Reduce the career impact of taking parental leave

Tax Implications

Parental Leave Pay is subject to income tax and may impact other government benefits like:

  • Family Tax Benefit
  • Child Care Subsidy

It’s advisable to update tax withholdings through Centrelink to prevent year-end tax liabilities.

With increased leave duration, added superannuation, and flexible eligibility, Centrelink’s Parental Leave Pay in 2025 offers more comprehensive support for growing families.

Eligible parents should check their qualifications early and apply in advance to make the most of this financial and workplace-friendly initiative.

FAQs

Is the Parental Leave Pay taxable in 2025

Yes, PLP is considered taxable income and must be included in the annual tax return.

Can both parents receive paid leave under the scheme

Yes, both parents can share up to 24 weeks of leave, with a minimum of 15 days allocated to the partner.

When should the application be submitted?

Applications can be submitted up to 3 months before the expected birth or adoption date.

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