Bringing a new baby home is an exciting moment for any family, but it also comes with financial challenges. To help parents manage these extra costs, the Australian Government has introduced an update to Centrelink’s Parental Leave Pay (PLP). Eligible parents can receive $948.10 per week before tax for up to 24 weeks. Along with weekly payments, the scheme now includes a boost to retirement savings, giving families both short-term relief and long-term benefits.
What the $948 Payment Means for Parents
The $948 payment is part of Centrelink’s Parental Leave Pay program, which supports parents taking time off work to care for their newborn. Over the full 24 weeks, families can receive a total of $21,979 before tax. This payment is designed to cover essentials such as food, nappies, and household expenses so that parents can focus on bonding with their baby rather than worrying about money. The idea is simple parents should not have to choose between financial stability and spending precious time with their child in the early months. By offering steady weekly support, the government ensures that families have a cushion during one of life’s most important stages.
A New Superannuation Boost for Parents
One of the biggest changes to the scheme is the addition of superannuation contributions. From July 2025, Centrelink will pay 12 percent of the total PLP into the parent’s super fund. This works out to around $2,637 over 24 weeks. This change is particularly important for women, who often face a gap in retirement savings due to time taken off work for childcare. By adding super contributions, the government is helping to secure financial stability not only for the present but also for the future. This step recognises the long-term impact of parental leave and ensures parents don’t miss out on building their retirement fund.
Who Can Receive the Payment
Not every parent is automatically eligible for the $948 Centrelink payment. To qualify, families need to meet certain conditions. The most important requirement is work history. Parents must have worked for at least 10 of the 13 months before the child’s birth or adoption, and during that time must have worked a minimum of 330 hours. There are also income limits in place. An individual must earn less than $180,007 a year, or if applying as a couple, the combined income must be below $373,094. Applicants must be Australian residents or hold an eligible visa at the time of claiming, and the baby’s birth must be registered before applying. Payments are only made on days when the parent is not working.
How Parents Can Apply
Applying for the $948 payment is straightforward but needs to be done carefully to avoid delays. Parents can log into their myGov account linked to Centrelink and submit a claim up to three months before the due date or adoption. Once the baby arrives, parents need to provide proof of birth and make sure the birth is officially registered. Employers should be notified at least ten weeks in advance, so leave arrangements can be organised smoothly. The main caregiver must apply within twelve months of the baby’s birth, while the secondary caregiver has up to two years to claim.
When the Payments Start
From July 12, 2026, the scheme will be extended from 24 weeks to 26 weeks, meaning families will get an extra two weeks of support along with additional super contributions. This extension shows that the government is looking at ways to continually improve the system so that parents can spend more time at home without financial stress.
Why This Support is Important for Families
The $948 Centrelink payment is more than just a short-term allowance. It gives families the ability to cover daily expenses while also building towards long-term financial security. For many parents, knowing that their superannuation continues to grow even while they are on leave provides extra peace of mind. Unfortunately, some families miss out on this payment simply because they are not aware of their eligibility or don’t apply on time. Checking eligibility early and lodging a claim is the best way to avoid missing this valuable support. More details can always be found directly on the Services Australia website.
With rising living costs, the updated PLP system is a practical and much-needed solution. It balances short-term financial support with future planning, ensuring that parents can focus on what matters most caring for their child during the first few months of life.