Parental Leave Pay Australia — How It Works and Who Can Claim
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Contents
Parental Leave Pay (PLP) is a government-funded payment for eligible working parents taking time off work to care for a newborn or recently adopted child. It is paid at the national minimum wage rate for up to 20 weeks (100 days), and from July 2025, the scheme is being expanded.
Parental Leave Pay — Key Facts
| Feature | Details |
|---|---|
| Rate | National minimum wage (~$915/week before tax for FY2025–26) |
| Duration | Up to 20 weeks (100 payable days) |
| Paid by | Services Australia (via your employer or directly) |
| Eligible for | Primary carer of a newborn or recently adopted child |
| Partner Pay | Up to 2 weeks can be shared with a partner (Daddy and Partner Pay — being restructured) |
| Income test | Adjusted taxable income under ~$168,865 (individual) |
| Work test | 10 of the 13 months before birth/adoption |
PLP Expansion (From July 2025)
The Australian Government announced significant changes to Parental Leave Pay:
- Total weeks of PLP increasing from 18 to 22 weeks in 2023–24 and to 26 weeks by 2026
- PLP is now shareable between parents — each parent can claim a portion
- A use-it-or-lose-it two-week component for secondary carers is being introduced
- The changes aim to encourage both parents to share parenting responsibilities
Check servicesaustralia.gov.au for the most current rules and dates.
Eligibility
Primary carer
You must be the primary carer of the child — the person who has primary responsibility for their daily care.
Work test
You must have worked at least 10 of the 13 months before the birth or adoption, and worked for at least 330 hours in that 10-month period, with no more than 8 weeks gap between any two working days.
Paid and unpaid leave (including annual leave, sick leave, and long service leave) can count toward the work test.
Income test
Your adjusted taxable income in the financial year before the birth must be under ~$168,865 (as of FY2024–25). This is an individual test — not a household test.
Australian resident
You must be an Australian resident and the child must be an Australian resident.
How Parental Leave Pay Is Paid
- Via your employer: If you have worked for the same employer for 12+ months, your employer may administer your PLP payments — Services Australia pays your employer, who then pays you with your normal payslip
- Via Services Australia directly: If you are self-employed, a casual, or have not worked for your employer for 12+ months, Services Australia pays you directly
PLP is subject to tax (withholding). You will receive a payment summary at end of year.
Superannuation on Parental Leave
From 1 July 2025, the government commenced paying superannuation (at the standard 11.5% SGC rate) on government-funded Parental Leave Pay. This closes a gap that previously saw new parents miss out on super contributions during their paid parental leave.
Your employer may also pay super on employer-funded paid parental leave — check your enterprise agreement or employment contract.
Other Family Payments to Combine With PLP
While receiving PLP, you may also be eligible for:
- Family Tax Benefit Part A and B
- Child Care Subsidy (when returning to work)
- Newborn Upfront Payment and Newborn Supplement (paid through FTB Part A)
FAQ
Can I receive PLP if I am self-employed? Yes — self-employed people can qualify for PLP if they meet the work test (having worked at least 10 of the 13 months before birth) and income test. Payment comes directly from Services Australia.
Can both parents receive Parental Leave Pay? From July 2025, PLP can be shared between two parents. The total weeks of pay available to a family can be split between the primary and secondary carer. Some weeks are reserved for each parent under the expanded scheme.
Is PLP affected by my employer’s parental leave policy? Government PLP and employer-funded parental leave can be received at different times or simultaneously, depending on your employer’s policy. Check your employment contract — some employers top up PLP to your full salary.
Do I need to return to work after PLP? There is no obligation to return to the same employer after PLP. However, your employer may require you to return for a period as a condition of any employer-funded top-up — check your contract.
See also: Family Tax Benefit | Child Care Subsidy | Centrelink Payments Guide
For advice tailored to your situation, speak with a financial adviser or social worker via MoneySmart.