How Parental Leave Pay affects other payments

Parental Leave Pay is taxable income and may affect other family assistance payments.

Parental Leave Pay is a taxable payment.

It may affect your tax obligations, including:

  • child support
  • HECS liabilities
  • Medicare Levy Surcharge
  • public housing rent
  • low income or other health care cards, or other associated concessions
  • pensioner and beneficiary tax offsets, and
  • dependent spouse, housekeeper and child-housekeeper tax offsets - you can’t get these during your Paid Parental Leave period; however, they may be available to you at the end of the period

Parental Leave Pay also affects the following payments and services.

Family Tax Benefit

You can receive Family Tax Benefit Part A during your Paid Parental Leave period if you’re eligible for it. However, you won’t receive Newborn Upfront Payment and Newborn Supplement if you receive Parental Leave Pay.

You and your partner can’t receive Family Tax Benefit Part B during your Paid Parental Leave period. However, you may receive it at the end of your Paid Parental Leave period, if eligible.

Parental Leave Pay and Dad and Partner Pay count as income in calculating Family Tax Benefit and other family assistance payments, such as Child Care Benefit. You should include any Paid Parental Leave scheme payments you expect to receive in your family income estimate.

Income support payments

Parental Leave Pay is counted as income when we consider your eligibility for Parenting Payment and other income support payments. This means you could get a reduced rate of income support while you’re receiving Parental Leave Pay or may no longer be eligible for an income support payment.

Read more about how Paid Parental Leave scheme payments are counted as income.

Child support

Parental Leave Pay is treated as income for child support purposes.

Page last updated: 18 May 2018