The advent of a newborn is a truly beautiful moment in life, and Centrelink came up with the concept of providing enhanced financial support from 2025 onward to assist Australian families in celebrating this occasion. Families should thus become versed in these entitlements so as to ease their transition into parenthood.
This new change by Centrelink encompasses the Newborn Payments:
There are two basic payments to assist families with newborn babies: the Newborn Upfront Payment and the Newborn Supplement. These payments are aimed at defraying some of the initial expenses involved in welcoming a new child into the family.
Newborn Upfront Payment
The Newborn Upfront Payment is a lump sum made available to eligible families based on the birth or adoption of a child. The payment, which is not subject to income tax, amounts to $667 per child (2025-a value that may change in subsequent years).
Newborn Supplement
The Newborn Supplement is an ongoing short-term payment extended for a maximum period of 13 weeks; the total number of weeks over which payments shall be made will depend on the income of the family and the total number of children.
For a first child, families can receive up to $2,003.82 over the 13 weeks, with the maximum pay rate for subsequent children being $668.85 over the same period.
Should families meet the eligibility criteria for the Newborn Supplement at the maximum rate, it will then further rely on their eligibility for Family Tax Benefit Part A based on the base rate. Should they qualify for anything below the base rate, the Newborn Supplement pays a proportionate amount.
Eligibility Criteria
To qualify for the Newborn Upfront Payment and Newborn Supplement, families must meet the following criteria:
- Care for a baby or child who has recently come into their care.
- Be eligible for Family Tax Benefit Part A.
- Not be receiving Parental Leave Pay for the same child.
These payments are also available in cases of adoption or when a child comes into a family’s care through foster arrangements.
Payment Distribution
Payments for the Newborn Upfront Payment and Newborn Supplement are made in accordance with the Family Tax Benefit Part A method of payment selected by the family. These payments can be made through fortnightly installments or as a lump sum at the end of the financial year.
Parental Leave Pay Enhancements
In addition to newborn payments, major changes affecting the Parental Leave Pay scheme have come into effect:
- Extended Leave: As of 1 July 2025, the total number of days available for Parental Leave Pay to families with children born or adopted will increase to 120 days (24 weeks). This will give parents more time to bond with their new child.
- Superannuation Contributions: Superannuation contributions at the rate of 12% will be paid on Parental Leave Pay from 1 July 2025.
This will be paid directly to the recipient’s superannuation fund on behalf of the Australian Taxation Office (ATO) at the end of the financial year. This initiative aims at enhancing retirement savings for parents on leave.
Summary of Payments
Below is a summary table of the payments available to eligible families:
| Payment Type | Amount | Duration | Eligibility Criteria |
|---|---|---|---|
| Newborn Upfront Payment | $667 per child | One-time | – Eligible for Family Tax Benefit Part A – Not receiving Parental Leave Pay for the same child |
| Newborn Supplement | Up to $2,003.82 for first child Up to $668.85 for subsequent children | Up to 13 weeks | – Eligible for Family Tax Benefit Part A – Amount depends on family income and number of children |
| Parental Leave Pay | 120 days (24 weeks) of paid leave | Up to 24 weeks | – Must meet work and income tests – Child born or adopted from 1 July 2025 |
| Superannuation Contribution | 12% of Parental Leave Pay amount | Paid annually | – Applies to Parental Leave Pay recipients for children born or adopted from 1 July 2025 |
Assistance for Families
Outside the newborn and parental leave payments, Centrelink offers various assistance services to families:
- Family Tax Benefit (FTB) Part A: This is a regular payment made to help with the costs of bringing up a child. The amount paid depends on income earned by the family, the number of dependent children, and their ages.
- Family Tax Benefit (FTB) Part B: This is a supplementary allowance for single-parent families or families with one main earner. This benefit is income tested and is designed to provide extra support when one parent stays at home or works reduced hours tending to the upbringing of a child.
Families must consider their eligibility and apply promptly for all assistance that they are entitled to receive.
In 2025, Centrelink has introduced major improvements for the benefit of Australian families expecting a new child. With an increase in payments, upholding parental leave and new measures for super payments, the scheme aims to provide financial relief during what is often the early precarious stage of a child’s life.
These families are encouraged to educate themselves about these benefits and apply for them so as to maximize all support available.
FAQS:
How can I apply for the payment?
When you make a claim for Family Tax Benefit (FTB) Part A for your newborn child, Centrelink will assess your entitlement to the Newborn Upfront Payment and Newborn Supplement. There is no requirement to apply separately for these payments for newborns.
Is there any effect of superannuation contribution on Parental Leave Pay?
The superannuation contribution of 12% is an additional benefit and therefore does not decrease Parental Leave Pay. This benefit is paid directly into your superannuation fund by the ATO after the end of the financial year.
Is the Newborn Upfront Payment complementary and available together with Parental Leave Pay for the same child?
Both payments can’t be claimed by the same claimant in respect of the same child. If Parental Leave Pay is received by you or your partner, then you will not be eligible for the Newborn Upfront Payment and Newborn Supplement.