In 2025, the Australian Government has officially increased the base Parenting Payment to $915 per fortnight for eligible single parents, offering a significant boost to one of the nation’s most critical welfare support programs.
The Parenting Payment provides much-needed financial assistance to parents, especially single-parent households that are juggling the responsibilities of raising young children with limited or no income.
This article provides an in-depth look at the Parenting Payment increase in 2025, revised eligibility criteria, income and asset limits, and how these changes affect single and partnered parents.
Understanding the Parenting Payment Increase in 2025
The updated $915 fortnightly rate applies to single principal carers, typically single mothers raising a dependent child under a specific age limit.
The increase reflects cost-of-living adjustments and broader welfare reform efforts by the Australian government aimed at providing more equitable support to low-income families.
For partnered parents, the payment rate remains lower, and eligibility is based on the joint household income and other shared resources. The Parenting Payment is non-taxable and is paid by Centrelink through Services Australia.
It supports parents until their youngest child reaches a specific age, after which recipients may transition to other payments, such as JobSeeker, depending on their circumstances.
Revised Eligibility Criteria and Age Rules
To qualify for the Parenting Payment in 2025, the applicant must be the primary carer of at least one child.
- Single Parents: For single parents, the child must be under the age of 14. This follows the July 2023 extension from the previous cut-off age of 8.
- Partnered Parents: For partnered parents, eligibility typically ends when the youngest child turns 6.
Applicants must be Australian residents and meet mutual obligation requirements, which may include attending appointments, job-seeking, or participating in approved education or training. Exemptions may apply in cases such as caregiving load, disability, or domestic violence situations.
New Income and Asset Test Thresholds
Alongside the payment rate increase, the government has adjusted income and asset thresholds to ensure fairness and minimize overpayments.
The income test determines how much Parenting Payment a person can receive, and any income above the free area reduces the payment at a taper rate, meaning partial payments are still possible even if the applicant earns some income.
Here are the new thresholds for 2025:
| Household Type | Income Free Area (per fortnight) | Cut-off Point | Asset Limit (Homeowner) | Asset Limit (Non-Homeowner) |
|---|---|---|---|---|
| Single Parent | $208 | ~$2,355 | $301,750 | $543,750 |
| Partnered (combined) | $208 | ~$2,086 | $451,500 | $693,500 |
Assets include savings, property (excluding your primary residence), investments, and vehicles. Centrelink uses these values to determine whether a parent qualifies for full or part payments. It is important for recipients to update asset and income declarations regularly to avoid penalties or overpayment debts.
The Real-Life Impact on Australian Families
For many families, particularly single-parent households, the increase to $915 offers not just financial assistance but also emotional relief. Many recipients have reported that the updated payment helps cover essentials like:
- School supplies
- Food and clothing
- Rising utility bills
- Rent and housing costs
The Parenting Payment has become essential for many parents trying to stay in stable housing and manage the increasing costs of living.
While the $915 increase is a welcome change, advocacy groups point out that it may still fall short of fully addressing the financial pressures faced by low-income households.
Many parents are also juggling care responsibilities with part-time jobs or study to meet mutual obligation requirements, which adds stress and time pressure.
Breakdown of the Parenting Payment Impact
| Parent Type | Payment Amount | Eligibility Age | Income Limit (per fortnight) | Asset Limit (Homeowner) | Asset Limit (Non-Homeowner) |
|---|---|---|---|---|---|
| Single Parent | $915 per fortnight | Child under 14 | $208 | $301,750 | $543,750 |
| Partnered Parent (combined) | Lower than $915 | Child under 6 | $208 | $451,500 | $693,50 |
The $915 Parenting Payment increase for 2025 represents a significant step forward in providing essential financial support to single parents and families raising children. While this adjustment helps cover some of the rising living costs, many parents will still face challenges balancing care responsibilities and work obligations.
The Parenting Payment remains a critical tool for supporting low-income households in Australia, offering financial relief and stability in uncertain economic times.
As Australia’s cost-of-living continues to rise, the Parenting Payment will likely evolve to better support the nation’s most vulnerable populations, ensuring that parents can continue to care for their children without sacrificing their own financial well-being.
FAQs
How do I qualify for the $915 Parenting Payment in 2025?
To qualify, you must be the primary carer of at least one child, and if you’re a single parent, the child must be under 14 years old. Partnered parents must have a child under 6. You must also meet income and asset tests, and be an Australian resident.
Does the $915 Parenting Payment apply to both single and partnered parents?
Yes, the payment is available to both single and partnered parents, but the payment rate for partnered parents is typically lower, and eligibility depends on joint household income.
Will the Parenting Payment affect my other Centrelink payments?
No, the Parenting Payment is non-taxable and will not affect your eligibility for other Centrelink benefits. However, changes in income or assets may impact the payment amount you receive.