A Boost for New Parents
If you’re eligible for Parental Leave Pay, there’s good news (and more money) coming your way!
BY HEJIRA CONVERY, KINDICARE
Whether you’re having a baby or adopting a child, Parental Leave Pay is your friend.
This government payment isn’t huge, because it’s based on the national minimum wage.
However, it definitely helps when you’re settling into life with your new addition, and taking time out from paid work (and employer funded leave) to devote yourself to them.
There’s flexibility when it comes to how you use and share your Parental Leave Pay days.
And if you’re eligible for this payment, and your little one is born or adopted from 1 July 2025, then you’re in line for a PLP boost!
When it comes to allocation, your family will be able to get more Parental Leave Pay days than if your child arrived before 1 July 2025.
Once you prove that your child was born or adopted from 1 July 2025, your family will be able to get 120 days (equivalent to 24 five-day weeks) of Parental Leave Pay, and this is 10 or 20 days more than you would have gotten in the past.
From 1 July 2025, there will also be an increase to the number of Parental Leave Pay days set aside for your partner (if you have one), meaning 15 days will be reserved for them to use (instead of the current 10 days).
There will also be an increase to the number of days you can take at the same time as another parent.
This means that if your child arrives on or after 1 July 2025, you’ll be able to take up to 20 days together, which gives you a great chunk of family time, and represents twice the number of days you could have shared previously.
There’s also good news when it comes to superannuation.
If your child is born or adopted from 1 July 2025, you will get a 12% superannuation contribution on your Parental Leave Pay.
This is something parent advocates are so happy to see, because it stops parents’ super from stalling, and the Paid Parental Leave Superannuation Contribution (PPLSC) will be paid by the Australian Taxation Office, directly into your superannuation fund.
You will need to be patient, though, because the ATO will pay contributions after the end of the financial year that you received Parental Leave Pay, starting in July 2026.
The PPLSC will be paid automatically if you’re eligible for it, so all you need to do is make a claim for Parental Leave Pay, and the financial wizards will take it from there.
Keep in mind, too, that if you share Parental Leave Pay with your significant other, the superannuation contribution will apply to each of your shares of the payment.
All of this bodes well for your family time and financial wellbeing.
So, make sure you claim for Parental Leave Pay and use your days in the way that works best for your family, whether that means cashing them all in at once or eking them out over time.
