Major Centrelink change to boost leave payments for new Aussie parents by $1,800

Parents will soon be able to access more paid parental leave from the government. From July 1, Services Australia will increase the number of parental leave pay days you can get to 130 days or 26 weeks.

The amount of paid parental leave available to families through Centrelink has been increasing by two weeks since July 1, 2024. This year marks the final planned increase and means families will receive around $24,000 in government-funded leave over the six-month period.

Currently, parents with children born since July 1, 2025, receive 120 days of paid parental leave, or 24 weeks. To receive the increased 130 days, your child will need to be born or adopted in the new financial year.

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“If you claim before July, your Parental Leave Pay balance will be 120 days,” Services Australia said.

“Once you give us proof your child was born or entered your care from 1 July 2026, we’ll add an extra 10 days to your balance.”

The number of days reserved for the other partner will also change on July 1, increasing from 15 to 20 days.

Parents are able to take up to 20 days at the same time as each other.

To be eligible for the payment, you need to pass an income test and a work test.

The income test looks at how much you earned from the financial year before either the date of the birth or adoption, or the date you lodge your claim.

For the 2024-25 financial year, you can’t have earned more than $180,007 as an individual.

If you don’t pass that test, you can use the family income test, which currently has a limit of $373,094 or less.

To pass the work test, you need to have worked for 10 of the 13 months before the birth or adoption of your child, for a minimum of 330 hours, around one day a week.

The payment is based on the national minimum wage, which is set to increase from July 1. The government has called for an above-inflation pay rise this year.

For the 2025-26 financial year, the rate is $189.62 a day or $948.10 per five-day week.

The increase from 120 to 130 days means parents will get at least an extra $1,896.20 in parental leave payments.

Since July 1, 2025, the government also pays superannuation on parental leave pay. This means you get an additional 12 per cent superannuation on the payment.

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