In 2025, Australian single parents have received welcome news with the Centrelink Parenting Payment increasing to $998.20 per month, offering much-needed cost‑of‑living relief amid rising housing, food, and childcare expenses. The payment, designed to support single parents and low‑income carers, is part of the federal government’s broader adjustment to welfare benefits to keep pace with inflation and ensure families can meet essential needs.
Why the Increase Matters
The new rate represents a significant uplift compared to previous years and will help thousands of single‑parent households better manage financial pressures. With living costs continuing to rise across Australia, the payment gives parents extra breathing room, especially those balancing childcare responsibilities with part‑time or casual work.
Eligibility for the Parenting Payment
The Centrelink Parenting Payment is available to:
- Single parents caring for at least one child under the qualifying age limit.
- Low‑income households meeting income and asset test thresholds.
- Recipients who are either unable to work full‑time due to caring duties or are engaged in part‑time employment within set limits.
Eligibility is reassessed periodically, and recipients must keep Centrelink updated with changes to their circumstances.
Payment Adjustments and Distribution
The $998.20 monthly amount is calculated on a fortnightly basis, meaning single parents will receive around $499.10 every two weeks. Payments are made automatically to eligible recipients’ nominated bank accounts, with the new rate effective from the latest indexing date in 2025.
This increase is part of the annual indexation process, where benefits like Parenting Payment, JobSeeker, and Age Pension are adjusted based on the Consumer Price Index (CPI) and wage growth to maintain purchasing power.
Broader Support for Single Parents
Alongside the parenting payment increase, eligible families can also access other support measures such as:
- Family Tax Benefit (FTB) Part A & B
- Child Care Subsidy
- Rent Assistance for low‑income households
- Health Care Card concessions
These combined benefits aim to give single‑parent families better access to affordable living, healthcare, and education resources.
Government and Community Reaction
Advocacy groups have welcomed the change, noting it reflects a growing acknowledgment of the financial strain faced by single parents. While the increase is celebrated, many campaigners stress that continued periodic adjustments are essential to keep pace with the real costs of raising children.