From July 1, 2025, eligible Australian parents will receive increased financial support under the government’s new Parental Leave Pay (PLP) program, which will provide payments of $948.10 per week (before tax). Administered by Services Australia, the scheme is designed to help new parents manage expenses during their time away from work following the birth or adoption of a child.
This major update aligns the PLP payment rate with the National Minimum Wage, demonstrating the Australian government’s commitment to ensuring that no parent has to choose between financial security and family care during a child’s crucial early months.
What Is the $948 Centrelink Payment for 2025?
The newly updated $948 Parental Leave Pay replaces the previous rate of the PLP program. The payment offers income support to parents who temporarily leave the workforce to nurture their newborns or newly adopted children.
The weekly rate of $948.10 directly reflects the national minimum wage, ensuring that parents on leave are financially supported without the stress of lost income. The payment also applies equally to both eligible mothers and fathers, encouraging a shared approach to childcare responsibilities.
| Feature | Details |
|---|---|
| Weekly Payment | $948.10 (before tax) |
| Duration | Up to 24 weeks |
| Primary Beneficiary | Main caregiver of the child |
| Managing Body | Services Australia |
| Start Date | July 1, 2025 |
| Additional Benefit | 12% Superannuation contribution |
Why Was the Update Introduced?
This update reflects a broader national commitment to supporting families and improving early-childhood welfare. Rising living expenses and work-life challenges have made it increasingly difficult for parents to stay financially stable during parental leave.
According to government statements, the purpose of this reform is to give parents the time needed to bond with and care for their young children without worrying about losing their main source of income. At the same time, the inclusion of a superannuation contribution helps parents safeguard their long-term retirement savings while taking leave.
Key Benefits of the 2025 Parental Leave Pay
The program brings both immediate and long-term benefits to Australian families:
- Financial support at minimum wage level: Parents will receive ongoing income reflecting current national wage standards.
- Extended leave coverage: Payments last for up to 24 weeks, helping families navigate early-parenting expenses.
- Superannuation inclusion: A 12% contribution ensures ongoing growth in retirement savings even when taking unpaid work leave.
- Equal access for both parents: Either parent can claim the benefit, reinforcing gender equality in parenting roles.
- Security and peace of mind: The guaranteed payment structure provides economic stability during one of the most financially vulnerable periods for families.
How Superannuation Contributions Work
For the first time under this updated version of the PLP scheme, recipients will receive 12% superannuation contributions on top of their weekly payment. This ensures that time taken off to raise children doesn’t harm future financial stability.
Two major long-term benefits of this inclusion are:
- Immediate relief: Parents continue receiving partial income and can keep up with regular expenses.
- Sustained retirement savings: Continuous super payments mean that long-term savings are not interrupted, supporting gender equity in super balances.
Eligibility Requirements
To qualify for the Parental Leave Pay from July 2025, Australians must meet specific eligibility rules set by Services Australia. These include:
- Primary carer requirement: You must be the main carer for the newborn or newly adopted child.
- Residency status: The applicant must be an Australian resident.
- Work test: Applicants must demonstrate a minimum level of paid work within the 13 months before birth or adoption.
- Income test: Your adjusted taxable income must fall within prescribed limits.
- Application deadline: Claims must be submitted within the official timeframe stated by Services Australia.
Additionally, only one parent per child can claim Parental Leave Pay at a time. Payments cease for any weeks the parent returns to work.
How to Apply
Applications can be lodged fully online, making the process straightforward for eligible families. To apply:
- Create a MyGov account and link it to Services Australia.
- Navigate to the ‘Parental Leave Pay’ section.
- Fill out the online form, providing personal details and employment information.
- Upload required documents such as proof of birth or adoption.
- Submit your claim ahead of your due date to ensure timely processing.
Once your claim has been assessed and approved, payments will be deposited directly into your nominated bank account. Parents are encouraged to apply early—up to three months before the expected due date—to avoid any delays in receiving their first payment.
Relationship to Other Centrelink and Family Benefits
It’s important for families to understand that the $948 Parental Leave Pay may influence the calculation of other benefits. Because PLP is treated as income, it could affect entitlements under programs such as the:
- Family Tax Benefit (FTB)
- Child Care Subsidy (CCS)
To avoid payment issues, recipients should report their PLP income accurately through their Centrelink account. Transparent reporting helps prevent overpayments or later repayment requests.
Why This Payment Is Important
The new scheme marks a transformative approach to parental care in Australia. By raising parental leave pay to align with the national minimum wage and attaching superannuation contributions, the initiative ensures that short-term caregiving doesn’t translate into long-term financial disadvantage.
Beyond financial support, the policy reflects Australia’s evolving values around family welfare, gender equality, and work-life balance. The ability for either parent to take leave promotes shared parenting, while the added super benefits strengthen women’s financial futures—historically underrepresented in retirement savings due to time taken off work for family care.
The Broader Impact
Economic analysts have described the 2025 reform as a bold but necessary investment in family and social well-being. Providing $948 per week for up to 24 weeks will not only help households manage costs associated with childcare and living expenses but also support national workforce participation by making parental leave more viable for middle-income families.
Companies are also expected to benefit indirectly from the policy, as supported parental leave correlates with improved employee retention and productivity once parents return to work.
Final Thoughts
The $948 Centrelink Parental Leave Payment 2025 is one of the most significant family policy reforms in recent years. It empowers parents to focus on caregiving while maintaining financial security and safeguarding their future savings.
Summary:
- Payment amount: $948.10 per week (before tax)
- Maximum duration: 24 weeks
- Superannuation contribution: 12%
- Application: Online through MyGov
- Effective date: July 1, 2025
This initiative reinforces the government’s central message: no parent should face financial hardship when choosing to care for their child. It strengthens both the economy and the family unit, ensuring that Australian parents are better supported—now and for generations to come.