Centrelink Parental Leave: What Every Aussie Family (and Employer) Needs to Know

 Parental leave is a life-saver—literally giving you time and space to bond with your new bub without sacrificing income completely. But when Centrelink’s involved? Well, let’s just say it’s not always a smooth ride.

Whether you’re expecting, adopting, or managing a growing team, understanding parental leave through Centrelink is essential. So, let’s clear up the confusion and answer the real questions people are asking, Future Advisory-style—clear, friendly, and a little bit cheeky when needed.

parental leave centrelink


What Does Centrelink Actually Offer?

Centrelink runs the Paid Parental Leave (PPL) scheme, giving eligible working parents access to government-funded income support when they take time off work to care for a newborn or recently adopted child.

Here’s the lowdown:

  • 20 weeks (or 100 days) of paid leave at the national minimum wage (currently $882.75 per week before tax).

  • Available to both parents, with flexible options to split the leave.

  • You can spread the leave across two years.

  • Payments come via Centrelink, either directly to you or through your employer.

It’s not designed to match your regular salary—but it’s a helpful income top-up while you’re focused on keeping a tiny human alive.

Who Can Apply?

You’re likely eligible if you tick these boxes:

  • You’ve worked for at least 330 hours across 10 of the 13 months before birth/adoption (that’s about 1 day per week).

  • Your adjusted taxable income was less than $168,865 in the last financial year.

  • You’re an Australian resident.

  • You’re the primary carer of the child during the claim period.

What surprises many people? Even casual workers, gig economy freelancers, and sole traders can apply—as long as they meet the work and income tests.

That’s right: Uber drivers, wedding photographers, hairdressers, part-time tradies—you're all in with a shot. Just bring the paperwork.

Changes That Make It Better (and Fairer)

Since July 2023, the government made some big improvements to the Paid Parental Leave scheme. These are the changes worth cheering for:

  • More flexibility: You can now take leave in blocks, with gaps in between. Want to work part-time, then take more time off later? Go for it.

  • One pool of leave: Instead of separate leave for “mum” and “dad,” there’s a shared pool of 20 weeks you can split however works for your family.

  • Inclusive language and access: The reforms better support diverse family structures and recognise different caregiving setups.

All in all, these changes give modern families a more realistic, flexible way to balance work and parenting.

How to Apply for Parental Leave Through Centrelink

Here’s your step-by-step game plan to make the process less painful:

1. Get a myGov Account (Linked to Centrelink)

If you don’t already have a myGov account, now’s the time. Link it to Centrelink so you can lodge your claim online.

2. Apply Early

You can apply up to three months before your expected due date. Don’t wait—processing takes time, and you don’t want delays when bub arrives.

3. Submit Supporting Docs

This includes ID, income details, and proof of employment. After the birth, you’ll also need to submit proof of birth—usually a hospital letter or birth certificate.

4. Choose Payment Setup

You can get paid directly or via your employer. If you’re self-employed, payments come straight from Centrelink.

5. Stay on Top of Communication

Centrelink might request follow-up info, especially for self-employed applicants. Keep an eye on your myGov inbox.

Sound a bit overwhelming? That’s where your accountant (hi, that’s us) can step in to keep things on track.

What About Employers?

If you employ someone going on parental leave, here’s what you need to know:

  • You might be asked to deliver the payments through payroll. Don’t worry—Centrelink reimburses you first.

  • You’re expected to hold their position (or a comparable one) during unpaid leave, under Fair Work rules.

  • You’re not required to pay super on PLP—but offering it voluntarily can be a great retention and equity move.

Setting up payroll to manage PLP payments correctly in Xero or MYOB is simple—if you know what you’re doing. (We do.)

Parental Leave for Business Owners and Freelancers

If you’re self-employed, the idea of stepping away from your biz—even briefly—can feel impossible. But you still deserve time off and income support.

The catch? You can’t be actively “working” in your business while receiving PLP. That means no client calls, invoicing, or admin tasks—even if it’s from home in your PJs.

Here’s what you can do:

  • Delegate: Line up support (virtual assistants, contractors, or your team) to cover your workload.

  • Plan your cash flow: PLP pays minimum wage, so budget accordingly.

  • Get your accountant involved: We’ll help verify your work history, income, and eligibility.

We’ve helped everyone from online coaches to mobile mechanics navigate parental leave through Centrelink. Trust us—it’s possible.

FAQs We Get All the Time

Q: Can I work part-time and still receive Parental Leave Pay?
Yes—if you’re accessing your flexible PPL days and staying within the allowed structure. It’s best to chat with Centrelink or your advisor.

Q: Is Dad and Partner Pay still separate?
Nope! That’s now folded into the 20-week pool. You and your partner decide how to split it.

Q: Do I get super while on PLP?
Not from Centrelink—but some employers choose to pay it. It’s worth asking.

Q: Can I pause and resume my parental leave payments?
Yes! That’s part of the flexibility now baked into the system. Just keep Centrelink updated.

Final Word: Know Your Rights, Maximise Your Support

Parental leave should be about cuddles and coffee, not Centrelink confusion. Knowing what you’re entitled to—and how to get it—makes a big difference during one of life’s most important transitions.

Whether you’re an expecting parent, a small biz owner, or juggling both, Centrelink’s parental leave system has options for you. And if you need help making sense of it? Future Advisory is here with the know-how (and maybe a few dad jokes for good measure).

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