How government Parental Leave Pay works
Parental Leave Pay is a government payment from Services Australia, paid at the national minimum wage rather than your own salary. For the scheme year starting 1 July 2026 the rate is $200.94 a day, or $1,004.70 for a 5-day week, before tax. A child born or adopted from 1 July 2026 attracts up to 130 days (26 weeks). Your total is the weeks you take multiplied by the weekly rate, so 26 weeks in full comes to $26,122.20 before tax. This is the government payment, so it is the same figure whether you earned $60,000 or $160,000 before your leave.
The income test, and super on PPL
Two income tests decide eligibility. Your individual adjusted taxable income must be $186,487 or less for the 2025-26 financial year. If you are over that, you can still qualify when your combined family income is $386,525 or less. Services Australia checks the individual limit first, then the family limit. A recent change matters here: for children born or adopted from 1 July 2025, the ATO pays a 12% super contribution on top of your Parental Leave Pay, paid into your fund after the financial year ends. Parental Leave Pay is taxable, so tax is withheld like ordinary income.
Government PPL vs employer paid parental leave, and partner days
Government Parental Leave Pay is separate from any employer paid parental leave, which is set by your workplace and can be paid on top. There is now one gender-neutral scheme, so partners draw from the same 130 days. If you have a partner, 20 days (4 weeks) are reserved for the other parent on a use-it-or-lose-it basis, and up to 20 days can be taken by both parents at once. Single parents can access all 130 days. Treat this as a way to see the numbers, not as financial advice.
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Simon is the founder of Orbit Money, a tool that helps people track subscriptions and recurring spend. He builds Orbit's free money calculators and writes about personal finance for UK and Australian readers.
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