Parental Leave Pay Guide 2025-26

What Is Paid Parental Leave in Australia?

"Paid Parental Leave" (PLP) is a government-funded payment of up to 24 weeks at the national minimum wage for eligible working parents of newborn or recently adopted children in the 2025-26 financial year. The scheme is administered by Services Australia under the Paid Parental Leave Act 2010 and is separate from any employer-funded parental leave entitlement.

PLP replaced the previous Baby Bonus in 2011 and has expanded significantly since. Both birth parents and non-birth parents (including fathers, partners, and adoptive parents) are eligible to share the entitlement. The payment is not means-tested on household income — only the individual claimant's adjusted taxable income is assessed. Unlike employer-funded leave, PLP is paid at a flat rate regardless of your usual salary, which means the payment functions differently from your normal take-home pay after tax.

For employees earning above the national minimum wage, PLP represents a reduction in weekly income compared to full pay. Use our Take-Home Pay Calculator to model the difference between your regular salary and PLP payments during your leave period.

How Much Is Parental Leave Pay?

Parental Leave Pay is $183.00 per day ($915.00 per week before tax) for FY2025-26, based on the national minimum wage rate. The total maximum payment for 24 weeks is $21,960 before tax.

PLP is paid for weekdays only (5 days per week). The rate adjusts each year on 1 July in line with Fair Work Commission minimum wage decisions. Tax is withheld from each payment before you receive it, so the actual amount deposited into your bank account is lower than $915 per week.

The payment is made either by your employer through their normal payroll cycle (with PAYG tax withheld at your usual rate) or directly by Services Australia. When Services Australia pays you directly, tax is withheld at 15% by default unless you request a different withholding rate by lodging a Withholding declaration. Understanding how income tax brackets work helps you estimate your actual after-tax PLP amount — see our Income Tax Calculator for a detailed breakdown.

Who Is Eligible for Parental Leave Pay?

Eligibility for Parental Leave Pay requires meeting 4 tests: residency, work, income, and care. Both birth parents and non-birth parents (fathers, partners, adoptive parents) are eligible to claim, and both can share the total entitlement.

Work Test

The work test requires 10 out of the 13 months before the child's birth or adoption date to have been worked, with at least 330 hours in that 10-month period. This averages to roughly 1 day per week (approximately 7.6 hours). Qualifying work includes paid employment, self-employment, and certain unpaid work in a family business. Paid leave counts as work. Dangerous job leave, pregnancy-related illness leave, and family or domestic violence leave are treated as qualifying days.

Income Test

The individual income test threshold is $168,865 for FY2025-26. This test applies to the claimant's individual adjusted taxable income in the financial year before the claim or the financial year before the child's birth — whichever is more favourable. Household or partner income is not assessed. The income threshold increases annually and is indexed to wage growth.

Residency and Care Tests

The claimant must be an Australian resident (for social security purposes) on the day the child is born or adopted and on every day PLP is received. The claimant must be the primary carer of the child during the PLP period. Primary care means the child is in the claimant's care and the claimant meets the child's daily needs.

If you are a contractor rather than an employee, the work test still applies to you based on your hours of self-employment. Read our Contractor vs Employee Guide for detail on how employment status affects government entitlements.

How Do You Apply for Parental Leave Pay?

Applications for PLP are lodged through myGov linked to Centrelink, and the earliest you can submit a claim is 3 months before the expected date of birth or adoption.

1. Create or log in to myGov and link your Centrelink account. If you do not have a Centrelink Customer Reference Number (CRN), one is created during the linking process.
2. Start an early claim up to 3 months before the expected birth or adoption date. Select "Parental Leave Pay" under the "Families" category.
3. Provide proof of birth or adoption within 56 days (8 weeks) of the child's arrival. For a birth, you need the Newborn Child Declaration form (FA081) completed by your doctor or midwife and the parent/s (FA081a). For adoption, provide the adoption order or placement letter.
4. Nominate your PLP days. You select which weekdays you want to receive PLP. Days can be taken as a continuous block, in separate blocks, or as single days. All PLP days must fall within 24 months of the child's birth or adoption.
5. Choose your payment delivery method. If your employer has 1 or more employees and agrees, PLP is delivered through their payroll. Otherwise, Services Australia pays you directly into your nominated bank account.
6. Submit the claim and wait for assessment. Processing typically takes 5 to 10 business days after all required documents are provided.

Both parents can lodge separate claims to share the 24-week entitlement. Each parent must individually meet the eligibility tests. A minimum of 2 weeks is reserved for each parent who wants to claim, meaning neither parent can take more than 22 weeks of the 24-week total.

What Is the Difference Between Employer-Funded and Government Parental Leave?

Employer-funded parental leave and government PLP are separate entitlements that can be received concurrently or consecutively. Receiving employer-paid parental leave does not reduce your government PLP entitlement.

The National Employment Standards (NES) under the Fair Work Act 2009 guarantee 12 months of unpaid parental leave for all employees with at least 12 months of continuous service. This unpaid entitlement is separate from both government PLP and employer-funded paid leave. Casual employees are entitled to unpaid parental leave if they have been employed regularly for at least 12 months. See our Award Rates Guide for information on minimum entitlements under modern awards.

How Is Parental Leave Pay Taxed?

Parental Leave Pay is assessable income taxed at your marginal tax rate and must be declared on your annual tax return. The ATO treats PLP the same as salary and wages for income tax purposes.

When your employer delivers PLP through payroll, they withhold PAYG tax using the same tax tables that apply to your regular salary. When Services Australia pays you directly, the default withholding rate is 15%. This default rate is often lower than many claimants' marginal rates. If your combined income for the year (including partial salary, PLP, and any employer-paid leave) places you in a higher income tax bracket, you receive a tax bill at lodgement time.

To avoid an unexpected tax debt, lodge a Withholding declaration with Services Australia requesting a higher withholding rate that matches your expected marginal rate. The income tax brackets for FY2025-26 range from 0% on the first $18,200 to 45% above $190,000. Use our Income Tax Calculator to estimate total tax payable on your combined income during a parental leave year.

Does PLP Affect the Medicare Levy?

PLP counts as assessable income for the 2% Medicare levy. If your total income including PLP exceeds the Medicare levy low-income threshold of $27,222 for singles, you pay the levy on your full taxable income. PLP income also counts toward the Medicare Levy Surcharge income test — if your income exceeds $93,000 (singles) and you do not hold private hospital cover, the surcharge of 1% to 1.5% applies.

Superannuation on Government PLP

From 1 July 2025, the government pays 12% superannuation guarantee on top of government-funded PLP. This super is paid directly into the claimant's nominated super fund. The maximum SG payable on 24 weeks of PLP is approximately $2,635 ($21,960 x 12%). This policy change addresses the retirement savings gap that parents (predominantly women) experience during career breaks. Check your expected super contributions using our Superannuation Calculator.

What Happened to Dad and Partner Pay?

"Dad and Partner Pay" (DaPP) was a separate 2-week government payment that ceased as a standalone scheme on 1 July 2023. DaPP was merged into the main Parental Leave Pay scheme, giving all parents access to the shared PLP entitlement.

Before the merger, non-birth parents were limited to 2 weeks of DaPP at the national minimum wage. Under the current scheme, non-birth parents (fathers, same-sex partners, adoptive parents) can claim up to 22 weeks of PLP if the birth parent claims only 2 weeks. The scheme is gender-neutral — the terms "birth parent" and "non-birth parent" replaced gendered categories. Both parents negotiate their preferred split when lodging claims.

The "use it or lose it" reservation of 2 weeks per parent is designed to encourage both parents to take leave. If only one parent claims PLP, the maximum they receive is 22 weeks and the remaining 2 weeks are forfeited.

What Are Keeping in Touch Days?

"Keeping in Touch" (KIT) days allow employees on parental leave to perform up to 10 days of paid work for their employer without ending their parental leave or affecting their PLP entitlement.

KIT days are voluntary for both the employee and employer — neither party can require the other to agree. Work performed on a KIT day is paid at the employee's normal pay rate and does not reduce the number of PLP days remaining. KIT days cannot be taken within the first 14 days (2 weeks) after the birth or adoption of the child.

Common uses for KIT days include attending team meetings, completing compliance training, participating in planning sessions, onboarding a replacement, or transitioning work to a colleague. KIT days do not count as a "return to work" under the Fair Work Act, so they preserve your full unpaid parental leave entitlement of up to 12 months (extendable to 24 months by agreement). If you exceed 10 KIT days, your parental leave is considered ended and you are treated as having returned to work.

What Changed for Parental Leave Pay in FY2025-26?

The maximum PLP entitlement increased from 22 weeks to 24 weeks on 1 July 2025, with a further increase to 26 weeks from 1 July 2026 already legislated.

The addition of superannuation guarantee on PLP is the most significant structural change. Previously, parents receiving only government PLP accumulated zero super for their leave period, contributing to a lifetime super gap estimated at $15,000 to $25,000 for parents who take multiple periods of parental leave. The 12% SG now applies to every dollar of government PLP paid from 1 July 2025 onward. The superannuation guarantee rate for FY2025-26 is 12% — see our Superannuation Guide for the full SG rate schedule and contribution caps.

Related Resources

These Australian tax and payroll calculators and guides help you plan finances around parental leave, model your take-home pay during and after leave, and understand how salary, super, and government payments interact.

• Take-Home Pay Calculator — model your after-tax income before and during parental leave to budget for the pay reduction
• Superannuation Calculator — estimate employer SG contributions and the impact of parental leave on your retirement savings
• Income Tax Calculator — calculate total tax payable on a part-year salary plus PLP income
• Leave Calculator — work out annual leave, personal leave, and long service leave accruals during employment
• Annual Leave Guide — understand how annual leave accrues during paid and unpaid parental leave
• Salary Sacrifice Guide — learn how salary sacrifice arrangements interact with parental leave and super

Frequently Asked Questions