How Much Can I Earn on Parenting Payment?

You’re the principal carer of your children and you might be asking yourself “how much can I earn on parenting payment?” Raising children is a rewarding yet financially demanding journey. In Australia, the government provides Parenting Payment, a financial support system designed to lighten the load for families with young children.

Other reasons why the Australian government provides this benefit include:

1. To reduce child poverty.
2. To improve child development.
3. To recognise the value of parenting.

In order to receive the Parenting Payment, you must meet the income and assets tests. The amount you get on this income test depends on your income (wages, bonuses, penalty rates, overtime commissions, fringe benefits, etc.), assets, and residence rules.

How Much Can I Earn on Parenting Payment?

The most basic question when it comes to parenting payments is, “how much can I earn on parenting payment?” The answer to this is it depends. The amount of payment you can get depends on your and your partner’s income and assets. Moreover, these rates are updated every year on the 20th of March and September.

As of September 2023, these are the payments you can earn on parenting payment:

Other than these fortnightly payments, you may also be eligible to get Rent Assistance and Energy Supplement:

1. Energy supplement – a financial assistance program offered by the Australian government to help cover some of the energy costs associated with raising children.
2. Rent Assistance – you may be eligible for this assistance as an additional payment if you meet certain criteria. This helps eligible individuals and families with the cost of private rental accommodation.

Note: If your income comes from business or real estate, Services Australia will use the net of the amount

How Much Can I Earn on Parenting Payment: Principal Carer Rules

To answer your question “how much can I earn on parenting payment,” you must first know if you are eligible. The Principal carer rules require that you must be the main carer of a young child or children. Thus, the child/children you’re caring for must be either younger than:

1. 14, if you’re single or
2. 6, if you have a partner.

Note: Single parents and carers can remain on Parenting Payment Single until their youngest qualifying child turns 14

The rules consider you as the principal carer if you are mostly responsible for their day to day care, welfare, and development. Moreover, this includes tasks like feeding, bathing, dressing, helping with homework, taking them to appointments, and playing with them. Also, only one person can be the principal carer for a child at a time.

Sharing care arrangements

If you share care with someone else, you need to decide and formally declare who is the principal carer. This can be done through a statutory declaration or court order if necessary. If you have equal care, you can’t both claim the Parenting Payment. You need to decide who will be the principal carer and claim the payment.

Exceptions and temporary absences

You can still be considered the principal carer even if your child is away for short periods, like at school or daycare. However, if your child lives with someone else for extended periods (e.g., over 50% of the time), they may become the principal carer.

Benefits of being the principal carer

If you are the principal carer, you are eligible to receive the Parenting Payment benefit to help with financial needs. Another advantage is that you can be exempt from some mutual obligation requirements (depending on your circumstances).

How Much Can I Earn on Parenting Payment: Residence Rules

The residence rules for the Parenting Payment in Australia can be a bit tricky, so we’ll break it down for you:

There are two main aspects to consider:

1. Newly Arrived Resident Waiting Period (NARWP):

• If you haven’t been a permanent resident of Australia for at least 2 years, you might need to wait before claiming the Parenting Payment.
• The waiting period is 4 years for most visa subclasses, but 2 years for some specific visas (e.g., Special Category visa subclass 444 or if you came on a Parental Leave Pay or Dad and Partner Pay visa).
• There are also exemptions to the NARWP for certain situations, like being in full-time work while on a temporary visa or receiving specific types of payments.

2. Qualifying Residence Period:

• Even if you meet the NARWP, you must have also lived in Australia for at least 1 year out of the previous 2 years to be eligible for the Parenting Payment.
• This period can be extended if you were receiving certain payments from Centrelink or other government agencies during that time.

Other Payments for Families You May Avail

Aside from the regular parenting payment, there are other payments for families that you can avail of. So the answer to the question “How much can I earn on parenting payment” also includes the following payment benefits:

1. Family Tax Benefit (FTB). A two-part payment (Part A and Part B) based on your family income and how many children you have.
   • Part A helps with general living expenses for families with children under 18.
   • Part B provides additional support for single support who have one main income support payment with families and families with teenagers.

2. Child Care Subsidy (CCS). This helps eligible families with the cost of approved childcare, reducing fees by up to 50%. The subsidy amount depends on your income, family size, and the type of childcare you use. To avail of this subsidy, you must:
   • Care for a 13-year-old child or younger who’s not attending secondary school, unless an exemption applies.
   • Use an approved childcare service.
   • Be responsible for paying the childcare fees.
   • Meet residency and immunisation requirements.

3. Additional Child Care Subsidy (ACCS). This one provides extra support for families: 
   • If you are a grandparent taking care of a child.
   • If you meet the transition to work requirements. 
   • If you’re experiencing temporary financial hardship due to an event that happened in the last 6 months.
4. Assistance for Isolated Children Scheme (AICS). This offers financial assistance to families living in remote and isolated areas with limited access to education. Moreover, it covers costs associated with boarding school or distance education. Additionally, this benefit gives access to those children who have a disability or other health-related condition and need special education.

Need Assistance With Claiming Parenting Payments For Your Children?

Income is a must when you have children since being financially capable is a part of a child’s best interests. Feeling overwhelmed by your Parenting Payment claim? You’re not alone. Family law, government benefits, and income support payments can be complicated, and going through the process on your own can be stressful and time-consuming. 

JB Solicitors’ family lawyers can answer the question “how much can I earn on parenting payment?”, give you expert guidance, and legal advice regarding parenting payment issues and concerns. Contact us today if you have any enquiries.