Centrelink Payments for Parents

Here is Life Sherpa's quick guide to Government family benefit payments.

Parental Leave Pay

Parental Leave Pay provides eligible parents with up to 22 weeks pay (at the minimum wage) to help them take time off work following the birth or adoption of a baby. This applies to babies born on or after 1 July 2024. It will rise to 24 weeks in July 2025 and to 26 weeks in July 2026.

Parental Leave Pay is means tested – which means that you won’t get it if you earn more than a certain amount. 

It currently pays $183.16 a day before tax, or $915.80 per 5 day week before tax for a maximum of 22 weeks and is taxable. This means it may affect your existing family assistance entitlements, child support arrangements and tax obligations. Parental Leave Pay can either be paid by your employer or directly by the government.

If you have a partner, some of your Parental Leave Pay will be reserved to share with them. In the current financial year, 10 days are reserved for your partner. This will rise to 15 days in July 2025 and to 20 days in July 2026. You can decide between you how to use the rest of the days.

To be eligible for Parental Leave Pay you must:

• be the primary carer of a newborn or recently adopted child
• have worked 10 of the 13 months (for at least 330 hours and with no more than an 8-week gap between two consecutive working days) before the birth or adoption of your child, and
• meet the Paid Parental Leave income test ($175,788 in FY24 for the birth parent or $364,350 as a couple). This is based on adjusted taxable income (which includes fringe benefits, additional super contributions and adds back investment losses) and a single person can use the couple limit.
• be on leave or not working from the time you become your child’s primary carer until the end of your Paid Parental Leave period.

Dad and Partner Pay

This has been scrapped from 1 July 2024 and is replaced by the reservation of part of the Parental Leave payment.

Newborn Upfront Payment and Newborn Supplement

This payment replaces the Baby Bonus (scrapped in March 2014) and is paid following the birth or adoption of a child.

To be eligible for a newborn payment of up to $667 (for each child) which is not taxable you must:

• have a baby or adopt a child;
• be eligible for Family Tax Benefit Part A
• not be receiving Parental Leave Pay for the same child

The Newborn Supplement depends on your income and how many children you have. The maximum amount is $2003.82 (over 13 weeks) for your first child and $668.85 for subsequent children.

You will receive your payment on the same basis as you choose to receive your Family Tax Benefit Part A, either fortnightly or as a lump sum at the end of the financial year.

You can get more if you have multiple births - $191.94 a fortnight for triplets or $255.78 a fortnight for quadruplets or more. 

Family Tax Benefit

This is the big one. Family Tax benefit is an ongoing payment intended to help with the cost of raising children. It has two parts:

• Family Tax Benefit Part A is paid for each child. The amount you get is based on your family’s income, the number of children you have and how old they are.
• Family Tax Benefit Part B is an extra payment for single parents and families with one main income – where one parent stays at home to care for a child full-time or only earns a small income. This payment is income tested.

You can get Family Tax Benefit A, if you provide care for a child at least 35 percent of the time (just over a third) and that child is either:

• 15 years old or younger; or
• over 15 years old and a full-time secondary student who is not receiving a pension, payment, or benefit such as Youth Allowance

A child will be eligible up until the end of the calendar year in which they turn 19.

Payments are based on your family income so if you are close to the cut-off amount it might be safer to wait until the end of the financial year. You’ll then receive a lump sum payment.

You may also be eligible for Family Tax Benefit Part B if you are a single income earner or you are a family and your youngest child is under 18.

A child will be eligible up until the end of the calendar year in which they turn 18.

You cannot receive Family Tax Benefit Part B while you’re receiving Parental Leave Pay.

Parenting Payment

Parenting Payment is designed to help with the cost of raising children and is paid as additional income to parents or guardians.

It is means tested and is paid to single parents of children under 14 or couples with a child under 6.

Only one parent or guardian can receive the payment and the amount of Parenting Payment you get depends on the income and assets of both you and your partner (if you have one).

If you qualify for Parenting Payment, you may also be entitled to other payments and services, such as:

• Clean Energy Advance
• Energy Supplement
• Health Care Card
• Helping Young Parents
• Jobs, Education and Training Child Care Fee Assistance
• Telephone Allowance

Child Care Subsidy

Child Care Subsidy has replaced the old Child Care Benefit and Child Care Rebate.

The Child Care Subsidy is intended to help parents meet the costs of approved and registered child care such as long day care, family day care, occasional day care, outside school hour care and vacation care.

Depending on your circumstances, you may be entitled to have up to 90% of your child care fees covered by the subsidy.

You must be using approved or registered child care and be responsible for paying the fees.

Payment is means tested. In the year to June 30, 2025 it is available for families earning up to $533,280.

You will receive the maximum benefit if your family income is less than $83,280. This means that up to 90% of the cost will be covered.

The percentage covered declines as your income rises - it goes down by 1% for every $5,000 you earn over $83,280, reaching zero at $533,280.

You get a higher rate for a second or subsequent child.

The number of subsidised hours you are entitled to depends on meeting an activity test. To get the maximum 100 hours a fortnight you must have 48 hours of activity (broadly working, studying or volunteering)

Your child must be immunized.

Grandparents, relatives, friends, neighbours and nannies can apply to be registered carers.

If in doubt, ask your Sherpa or contact Centrelink.