Paid Parental Leave counted as income
We now treat Paid Parental Leave as income. This means Parental Leave Pay and Dad and Partner Pay count in your income test for payments from us.
How it affects your income support payment
Your payment’s income test will include your and your partner’s:
Adding these to the income test may do one of the following:
- lower your payment
- give you a lower rate for a new payment or stop you getting one
- stop your payment if your total income is too high.
Read about what we assess as income.
When PPL ends
We’ll do the following:
- test your income again
- adjust your payment to your new income.
If we cancelled your payment because your income was too high, you can apply again when you stop getting PLP or DaPP.
How to minimise an overpayment
If you’re on income support and you backdate PPL to the child’s date of birth, you’ll have to pay us back for any income support overpayment. This is because we based your payment for that time on your income without PPL.
You can minimise this by choosing a start date in the future.
To get the full 18 weeks of PPL, the start date must be within 34 weeks of the birth or adoption.
Read about claiming Parental Leave Pay.
If we cancel your income support payment
You can apply for the payment again when PLP or DaPP ends.
Choosing the right payment for you
When you have a new child you can choose either:
You need to decide which one is best for you.
Once you start on PLP, you can’t change to Newborn Upfront Payment and Newborn Supplement.
You can apply for PLP even if we’ve already paid you Newborn Upfront Payment and Newborn Supplement. But you will need to pay us back for those if we agree you can switch to PLP.
Page last updated: 5 July 2019