Parenting Payment Rises to $1,039.70 Plus $16.20 in October 2025 – Who Qualifies, Payment Schedule & Thresholds

From October 2025, eligible Australian parents will notice an increase in their Centrelink Parenting Payment, with an additional $1,039.70 base rate and a $16.20 Energy Supplement added to their fortnightly benefits. This welcome update by Services Australia aims to support families struggling with rising living costs, particularly single parents and caregivers of young children. The revised payment will help ease expenses like rent, childcare, and groceries while ensuring a fairer cost-of-living balance for families across the country.

Parenting Payment Increase in October 2025
Parenting Payment Increase in October 2025

Parenting Payment Increase October 2025: New Rates and Adjustments Explained

Starting October 2025, the Centrelink Parenting Payment will rise to a total of $1,039.70 per fortnight, plus a $16.20 Energy Supplement. This adjustment follows the government’s biannual indexation policy, which reflects inflation and wage growth. The new payment structure ensures parents receive more financial security amid increasing household bills. The base rate applies to single parents, while partnered parents receive a proportionate amount. This change is part of Australia’s broader effort to strengthen family welfare and provide essential income support for those balancing child care and daily expenses.

  • Single parents receive $1,039.70 base payment.
  • Energy Supplement adds $16.20 per fortnight.
  • Indexation ensures payments match cost-of-living rises.

Eligibility Criteria for Parenting Payment 2025 in Australia

To qualify for the 2025 Parenting Payment increase, applicants must meet Centrelink’s specific eligibility guidelines. The primary caregiver of a dependent child under the eligible age threshold (usually under 14 for single parents and under 6 for partnered parents) can apply. The payment is income and asset-tested, ensuring that financial assistance reaches those who truly need it. Residency and citizenship requirements must also be fulfilled. Applicants are encouraged to update their MyGov details to avoid payment delays when the new rates take effect in October 2025.

  • Must be an Australian resident or citizen.
  • Must be the primary caregiver of a dependent child.
  • Income and asset tests apply for qualification.
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How to Claim the Parenting Payment Increase Through Centrelink

Eligible parents can claim the new Parenting Payment increase through their MyGov account linked to Centrelink. Applications can also be lodged at local Centrelink offices or via phone assistance. Once verified, recipients will automatically receive the increased payment amount in their next scheduled deposit after October 2025. Parents already receiving the payment do not need to reapply — their benefit will automatically adjust. For new claimants, providing accurate documentation of income, residence, and dependent status is crucial for faster processing and approval.

  • Login to MyGov and link Centrelink.
  • Submit updated income and dependent details.
  • Automatic adjustment for existing recipients.
Parenting Payment
Parenting Payment

Key Details: Payment Breakdown and Support Programs

The Parenting Payment increase aligns with other government support programs such as Family Tax Benefit and Energy Supplement initiatives. This means recipients can benefit from multiple overlapping supports, providing better coverage against inflation. The $1,039.70 base payment targets day-to-day expenses, while the $16.20 Energy Supplement directly offsets rising electricity costs. With additional programs for rent and child care, families can expect better stability and improved financial well-being under the 2025 welfare update.

  • Integration with Family Tax Benefit and Energy Supplement.
  • Additional rent and childcare support available.
  • Improves overall family financial resilience.
Category Old Rate (Before Oct 2025) New Rate (From Oct 2025) Increase
Single Parent Base Rate $1,013.60 $1,039.70 $26.10
Energy Supplement $16.20 $16.20 No Change
Partnered Parent (each) $691.80 $709.20 $17.40
Total Combined Payment $1,707.60 $1,764.30 $56.70
Effective Date March 2025 October 2025 Biannual Adjustment
Administered By Services Australia Centrelink
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FAQs

Q1: When will the Parenting Payment increase take effect?
The increase begins in October 2025.

Q2: Do existing recipients need to reapply?
No, payments will be updated automatically.

Q3: How can I check my new payment amount?
Log in to your MyGov Centrelink account to view updated details.

Q4: Is the Energy Supplement included automatically?
Yes, eligible parents receive it with their regular payments.

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Author: Kenneth TURNER

Kenneth Turner is a local freelance writer from Australia with strong expertise in finance-related topics, including budgeting, investments, and economic trends. He is dedicated to breaking down complex financial matters into clear, practical advice that helps readers make smarter money decisions. Kenneth’s work is known for its accuracy, accessibility, and relevance in today’s fast-changing financial world. Outside of writing, he has a keen passion for technology and sports, which often bring a fresh perspective to his storytelling.

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