New Parental Leave Payment Program in Australia – Parents to Receive $948 Weekly Centrelink Payment
The Australian government has announced a major update to its Parental Leave Pay Program, which will come into effect on July 1, 2025. Under this program, eligible parents will be paid $948.10 per week (before tax). This payment is intended to provide financial assistance to parents who take time off work to care for their newborn or newly adopted child.
This government initiative is intended to provide families with financial stability during a critical time when expenses increase and a portion of income is temporarily lost following the birth or adoption of a child.
$948 Centrelink Payment 2025 – What is this scheme?
This new payment will be administered by Services Australia and aims to provide support to parents while they are on leave from work. This scheme is an updated version of the existing Parental Leave Pay (PLP) program.
From July 1, 2025, the weekly payment rate will be increased to $948.10, bringing it in line with the National Minimum Wage. This payment replaces parents’ lost wages, allowing them to focus on childcare.
Key Features of the Payment
Total Amount: $948.10 per week (before tax)
Duration: Up to a maximum of 24 weeks
Who Will Receive: Primary Caregiver of a newborn or adopted child
Managing Organization: Services Australia
Country: Australia
Official Website: servicesaustralia.gov.au
Why This Update?
The Australian Government wants to strengthen family-supportive policies. Parents’ presence is crucial in a child’s early life, but balancing work and family responsibilities can often be difficult.
Through this payment, the government is ensuring that parents can care for their child without financial worries. This scheme not only provides immediate relief but also protects parents’ long-term financial future.
Superannuation Contributions (Retirement Savings)
Another important feature of this scheme is that it includes a 12% superannuation contribution.
This means that contributions to their superannuation fund will continue even when parents are on leave.
This provides two benefits:
- Immediate financial support to help them manage their expenses.
- Long-term security so that future savings are not affected.
Eligibility Criteria
There are several key conditions that must be met to qualify for this payment:
- Must be the primary carer—that is, the person who is primarily responsible for the child.
- Must pass the Income Test, which is set by Services Australia.
- Must complete the Work Test—this measures how many hours you have worked in the past.
- You must be an Australian resident, and the child must be born or adopted in Australia.
- File your claim on time — Applications must be submitted within the prescribed deadlines.
It’s important to note that only one parent per child will receive this payment. Furthermore, payments will not be available for days when the parent has returned to work.
How to Apply
Applying for this payment can be done online, and the process is simple.
Here are the steps to apply:
- Create a myGov account and link it to Services Australia.
- Go to the ‘Parental Leave Pay’ section and complete the online application form.
- Upload the required documents—such as proof of the child’s birth or adoption.
- After submitting your application, Services Australia will verify your documents.
- Once eligibility is determined, the payment will be deposited directly into your bank account.
The government recommends that parents apply in advance to ensure timely payment and avoid any delays.
Impact on Other Government Schemes
It’s important to note that this $948 payment may impact other government benefits, such as the Family Tax Benefit or Child Care Subsidy.
Because it counts as income, the amount of other benefits may be reduced in some cases. Therefore:
- Accurately report all your income to Centrelink.
- This will avoid overpayments or later repayments.
The Importance of the Scheme
This update reinforces the government’s commitment to supporting families in the early stages of life.
Parental Leave Pay 2025 not only provides financial support to parents but also gives them the opportunity to spend precious time with their child, which is crucial for their development.
Conclusion
This new $948 Centrelink Parental Leave Payment, which begins on July 1, 2025, will bring significant relief to Australian parents.
This scheme combines economic stability, family support, and social security.
The government’s objective is clear: “No parent should lose time caring for their child due to financial reasons.”
In short:
- Weekly payment: $948.10 (before tax)
- Term: Maximum 24 weeks
- Superannuation: 12% additional contribution
- Eligibility: Only eligible parents will receive it
- Application: Online from myGov
This scheme proves that the Australian Government takes the family and economic well-being of its citizens seriously.