Navigating Parental Leave: One Mother’s Journey with Centrelink
An Australian mother of two is advocating for earlier applications for Centrelink’s paid parental leave, having faced significant hurdles during her initial claim. Lexi, a 26-year-old from Newcastle, nearly forfeited $15,000 in payments due to a "common mistake" in her application process.
After the birth of her son, Lexi learned that her application for paid parental leave was denied. In a conversation with Yahoo Finance, she expressed her disappointment, revealing that both she and her husband had relied on the payment to ease their financial situation. Upon investigation weeks later, Lexi discovered she had inadvertently selected the option to apply for both paid parental leave and the family tax benefit. This misstep resulted in her denial for both supports, despite her eligibility for paid parental leave.
“The communication I received via the myGov app simply stated that my claim had been denied as my husband earned too much money,” Lexi recounted. Undeterred, she contacted Centrelink and was advised to reapply—this time solely for paid parental leave. Fortunately, her subsequent application was successful.
Lexi’s experience serves as a cautionary tale. “By the time I was approved, my son was already five months old,” she noted, though she did eventually receive back pay from her application date, ultimately securing 18 weeks of paid parental leave.
Had Lexi not pursued her claim further, she estimated she could have missed out on $15,000 in financial support, which significantly relieved her family’s financial pressures. “We were able to put extra money towards our home loan and reintegrate some little luxuries into our lives,” she shared.
This challenge occurred in 2022. However, following the birth of her daughter last year, Lexi was extra vigilant and careful in her second claim to avoid repeating past mistakes. Her experience resonated widely; a video she shared detailing her journey garnered thousands of views, with many viewers sharing similar stories.
Lexi strongly encourages parents to start their applications early to allow time to address any potential errors. “Services Australia lets you submit a pre-birth claim up to three months before your baby’s due date. This helps ensure there’s time to rectify issues,” she advised.
Following Lexi’s example, it’s suggested that parents make an appointment at their local Centrelink if their claim is denied to receive guidance and clarification on the claims process.
Hank Jongen, a general manager at Services Australia, highlighted the various supports available for parents taking time away from work for childcare. “There’s no need to submit separate claims for the Parental Leave Pay and Family Tax Benefit; eligibility will depend on individual circumstances,” he noted.
Lexi’s advice to future applicants is clear: don’t self-assess; utilise the online tools that Services Australia provides, which assess eligibility for different payments directly, ensuring a smoother process.
Understanding Parental Leave Pay and Family Tax Benefits
Parental Leave Pay is available for working parents to take time off to care for a newborn or adopted child, currently set at $916 per week for up to 22 weeks. Starting from July 1, 2025, this will increase to 24 weeks, and then to 26 weeks from July 1, 2026, with superannuation included from 2025 onwards. Eligibility hinges on fulfilling income tests, work tests, and residence rules.
The Family Tax Benefit, on the other hand, supports low to middle-income families with the costs of raising children. The amount awarded corresponds to individual situations—considering factors like family size and care levels. Payment calculations fall within the parameters of the Family Tax Benefit rates and current financial year income tests.
As Jongen emphasised, it’s vital to engage with Services Australia’s resources to provide accurate and timely claims to avoid complications. The encouragement to ensure every application is filled out correctly can significantly change the financial outcomes for families navigating the complexities of parental leave and support systems in Australia.
