Big Changes to Parental Leave Pay Australia: What Parents Need to Know from July 2025

Big Changes to Parental Leave Pay Australia: Australians just stay updated, especially those who are parents. Services Australia is going to add more days in the previous number of days on the basis of which the pay is decided before. Recently you are getting 110 days or 22 weeks of paid leave, if your child was born before July 1 last year. But the number of days will be going to be increase from 1^st of July from this year. The number days are changing that is the paid leaveis going to increase by two weeks to 120 days.

Big Changes to Parental Leave Pay- Overview

The Australian government has revamped its Parental Leave Pay scheme to give new parents more flexibility and support. Announced earlier this year, these changes aim to make life easier for families by offering more choice in how parents split their leave and boosting the payment amounts to keep up with rising costs. The big goal? Help parents spend quality time with their newborns without stressing about money, while also encouraging both parents to share the load.

Starting July 1, 2025, the scheme will offer up to 26 weeks of paid leave for families, with a new option to split it more evenly between parents. Plus, the payment rates are getting a bump, and there’s a shiny new “use-it-or-lose-it” rule to nudge both parents to take time off. The government expects these changes to support over 180,000 families each year, with a budget boost of $1.2 billion over four years. It’s all part of a push to make parenting more equitable and less stressful.

Who’s Eligible?

Not everyone can claim Parental Leave Pay, but the rules and starting July 1, 2025, you need to:

• Be the primary carer of a newborn or newly adopted child (under 2 years old when you start the leave).
• Eligible visa (such as a partner visa) or be a citizen or permanent resident of Australia.
• Have worked at least 10 of the last 13 months before the birth or adoption, with at least 330 hours of work in that time (roughly one day a week).
• Earn $168,000 or less per year as an individual (this is the income cap for 2025).
• Not be working on the days you’re claiming the payment, though you can keep getting it during paid leave from your employer.

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Big Changes to Parental Leave Pay- Benefits

The updated Parental Leave Pay scheme is packed with perks for families. Here’s why it’s a big deal:

• The payment bump to $860 a week means families can cover essentials like diapers, groceries, or rent without dipping too deep into savings.
• Taking leave in single days or short blocks makes it easier to balance work and parenting, especially for freelancers or part-time workers.
• The reserved 6-week portions encourage both parents to take time off, which could lead to more equal parenting roles and stronger family bonds.
• Adding super contributions means parents (especially mums, who often take more leave) won’t miss out on retirement savings.
• Single parents, adoptive parents, and same-sex couples all qualify, making the scheme inclusive.

Parental Leave Pay Changes at a Glance

How to Apply For Big Changes to Parental Leave Pay

Applying for Parental Leave Pay is easier than assembling a flat-pack crib. Here’s the step-by-step:

1. Make sure you meet the work, income, and residency rules. Services Australia has an online tool to help you confirm.
2. Decide how you and your partner (if applicable) want to split the 26 weeks. Remember the 6-week reserved portions!
3. Use your myGov account linked to Services Australia. You can apply up to 3 months before your baby’s due date or adoption, or within 2 years after.
4. You’ll need your baby’s birth certificate (or adoption papers), proof of income, and work history details. If you’re not sure what’s needed, Services Australia’s website has a checklist.
5. Typically, payments are made every week or every two weeks directly to your bank account.Your employer might handle it if they’re paying you directly.

Changes in the Parent Leave Pay

• Recently Service Australia has declared some changes to the Centrelink payments for 2025.
• Changes are the part of any scheme. To enhance the benefits and to support the citizens regular update is needed.
• One of the major changes of 2025 by the Service Australia is increasing the days and payment of Parental Leave Pay.
• The maximum days will be extended from 110 to 120 days starting on July 1st, providing new parents with an additional two weeks of assistance. This can help the new parents in providing enough financial relief.
• The families who are expecting to have a child in near future they have to be aware about these changes.
• But remember the children who are born before 1^st of July, 2025 are eligible to get the 110 days of duration as per the previous year rule.
• Only the births or adoptions after this date will qualify for the new 120-day benefit and as a proof the agency will take the birth registration certificate.

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Child born or adopted

• You are entitled to up to 110 days or 22 weeks of paid parental leave if your child is born or adopted on July 1, 2024.
• If your child is born or adopted in this year after the change will be implemented that is from 1^st July, 2025onwards then you can receive up to 120 days or 24 weeks of paid parental leave.
• And in case you are sharing your Parental Leave Pay days with you partner then you can transfer or share up to 10 extra days simultaneously.
• For detailed information, you can refer to Service Australia website.

Payment Schedule for September 2025

Wondering when the money hits your account? PLP is typically paid through your employer or directly by Services Australia, depending on your situation. Here’s a rough schedule for September 2025:

Big Changes to Parental Leave Pay– Features

The 2025 changes come with some awesome features to make life easier for new parents:

• The 12% super contribution helps close the retirement savings gap, especially for women who often take more leave.
• Split or combine your 120 days however works best, within two years of the birth or adoption.
• Reserved days for each parent encourage dads and partners to get involved, balancing caregiving roles.
• Payments are based on the National Minimum Wage, ensuring a decent baseline for all eligible parents.
• The scheme will grow to 26 weeks by July 2026, so future parents get even more support.

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