Becoming a parent is one of life’s most significant moments, and understanding your parental leave entitlements shouldn’t add to your stress. Whether you’re expecting your first child or expanding your family, Australia’s Parental Leave Pay scheme provides crucial financial support during this time. Here’s everything you need to know about accessing up to 120 days (24 weeks) of government-funded leave at the national minimum wage – and how to make the most of it.
Are You Eligible for Parental Leave Pay?
To be eligible for Parental Leave Pay, you must be the primary carer of a new child, meet the work test (working roughly one day a week for 10 of the last 13 months), and have an individual adjusted taxable income under $180,007 or less in the 2024-25 financial year and $175,788 or less in the 2023-24 financial year.
Here’s a quick self-assessment checklist to determine your eligibility:
✓ Primary Carer: I will be the main person caring for the child
✓ Work Test: I have worked at least 330 hours (approximately 7 weeks full-time) in the 10 months before my child’s birth or adoption
✓ Income Test: My individual income was below the official threshold in the last financial year
✓ Residency: I am an Australian resident
If you’ve ticked all boxes, you’re likely eligible and ready to proceed with your application. If you haven’t met the work test due to pregnancy-related illness or premature birth, check the Services Australia website for possible exceptions. And if your income exceeds the threshold, whilst you won’t qualify for the government payment, you may still have access to employer-funded leave.
How Much Will You Actually Receive?
The government pays Parental Leave Pay at the national minimum wage rate of $948.10 per week before tax. Your total entitlement is 120 days (24 weeks), which can be taken as a continuous block or flexibly spread out to suit your family’s needs.
Here’s what this looks like in practice:
- Per week: $948.10 (before tax)
- Per fortnight: $1,896.20 (paid by your employer or directly by Centrelink)
- Total for 24 weeks: $22,754.40 (the full amount available for a family to share)
Remember, this payment is taxable income – it’s not a tax-free bonus. The payments are made fortnightly, not as a lump sum, so factor this into your budget planning. A smart move is to use the ATO’s income tax calculator to estimate your after-tax fortnightly payment and log into myGov to check if your employer is registered to provide these payments.
How to Apply for Parental Leave
Timing is crucial here. You can and should start your claim up to three months before your baby is due. The entire process is done online through your myGov account linked to Centrelink, and whilst it might seem daunting, it’s actually quite straightforward when you know the steps.
Here’s your application roadmap:
- Link Centrelink to myGov: Ensure your accounts are connected before starting
- Start the Claim: In myGov, navigate to Centrelink > Make a claim > Families > Get started (this combined claim covers both Parental Leave Pay and Family Tax Benefit)
- Provide Details: Fill in your work history, income estimate, employer’s ABN, and bank details
- Submit Before Birth: Complete the pre-birth portion and save your receipt ID
- Finalise After Birth: Once your baby arrives, upload the “Proof of Birth” form from the hospital to complete your claim
You’ll know you’ve succeeded when your myGov account shows “Approved” status and provides a payment schedule.
Do Fathers Get Paid Parental Leave?
Here’s something that often surprises people: fathers and partners are fully entitled to paid parental leave. The 120-day payment is a shared family entitlement, meaning you can divide it however works best for your family.
If both parents meet the eligibility requirements, you have options. You can take leave simultaneously, both drawing from the 120-day pool at the same time, or separately, dividing the days between you (perhaps one parent takes 16 weeks whilst the other takes 8 weeks).
Consider what works best for your situation:
- For maximum bonding: Split the leave equally at 12 weeks each, allowing both parents significant one-on-one time
- For financial continuity: Have the secondary earner take a shorter block (2-4 weeks) whilst the primary carer takes the remainder
The Double Dip Strategy: Government Pay Plus Employer Leave
Government Parental Leave Pay is a taxpayer-funded safety net at minimum wage, whilst employer-paid leave is an industrial entitlement from your company, often at full salary. The good news? You’re legally entitled to receive both if eligible.
The smart strategy many parents use is to have their employer pay them first (for example, 12 weeks at full pay), then start the 24-week government payment afterwards. This maximises both your time off and your income during this important period.
Take action today by requesting your company’s parental leave policy from HR and asking directly: “How does our company policy interact with the Centrelink Parental Leave Pay scheme?” Understanding this interaction is key to optimising your leave and income.
Can an Employer Deny Paid Parental Leave?
If you’ve worked with your employer continuously for at least 12 months, you’re legally entitled to unpaid parental leave, and your employer cannot refuse this. All employees in Australia are eligible for unpaid parental leave if they have completed at least 12 months of continuous service with their employer Parental leave and related entitlements. This is a guaranteed entitlement under the National Employment Standards (NES) in the Fair Work Act 2009. Your employer cannot deny this leave if you meet the eligibility criteria.
What Happens if My Maternity Leave is Denied?
If your maternity leave request is denied improperly, you have significant legal protections and multiple avenues for recourse. Anti-discrimination laws apply both to employees who are and who are not entitled to unpaid parental leave under the Fair Work Act. This means that an employer must ensure that the employee’s sex, pregnancy or family responsibilities does not unfairly influence a decision to reject the employee’s leave application.
Your Legal Options Include:
- Fair Work Commission: If an employer and employee cannot resolve a dispute about a request for extension of parental leave at the workplace level, the Fair Work Commission can assist with resolving the dispute Parental leave and related entitlements. You can lodge an unfair dismissal or adverse action claim if you’ve been terminated or disadvantaged due to your pregnancy or leave request.
- Australian Human Rights Commission: You will be entitled to file a complaint with the Australian Human Rights Commission, alleging that your employer has taken unlawful discrimination against you on the basis of your pregnancy Maternity Leave and Pregnancy Discrimination. This covers discrimination under the Sex Discrimination Act 1984.
- State Anti-Discrimination Bodies: Complaints can be made to your state commission, such as the Victorian Equal Opportunity and Human Rights Commission Pregnancy and parental discrimination at work, which handle discrimination complaints under state legislation.
- Fair Work Ombudsman: They can provide information about your rights and may investigate breaches of workplace laws.
- Fair Workplace Solutions: For personalised guidance tailored to your specific situation, we here at Fair Workplace Solutions can provide expert advice on navigating complex parental leave issues.
What Constitutes Unlawful Denial:
- An employer can only refuse a request for extended parental leave if they’ve discussed and genuinely tried to reach an agreement with the employee, considered the consequences for the employee of refusing the extension, and it’s impractical to change other employees’ working arrangements or hire new employees to accommodate the request, or the extension would result in a significant loss of productivity or have a significant negative impact on customer service Parental leave and related entitlements.
- If an employer refuses a request, the written response to the employee must detail the reasons for refusal, including the particular business grounds relied on and how they apply to the request Parental leave and related entitlements.
Potential Outcomes:
If your complaint is successful, outcomes may include:
- Reinstatement to your position
- Financial compensation for lost wages including economic and future economic loss
- Compensation for distress and humiliation
- Penalties against the employer – in one case, respondents were ordered to pay the applicant $164,097 for loss suffered and $10,000 for distress, hurt and humiliation.
Making It Work for Your Family
Navigating parental leave doesn’t have to be overwhelming. Start your application early, understand your entitlements, and don’t leave money on the table by missing out on either government or employer benefits you’re entitled to. Remember, this support exists to help you focus on what matters most – welcoming your new family member and adjusting to life as a parent.
Whether you’re a first-time parent or adding to your family, taking the time to understand and access your full parental leave entitlements ensures you can enjoy those precious early months without unnecessary financial stress. After all, you’ve got enough to think about with a new bub on the way.