A person may receive a parenting payment if they are the primary caretaker for their children. A primary caretaker is a person who has the most amount of responsibility over their children. Simply put, primary caretakers spend most of their time with the children, providing day-to-day care, welfare, and development for children. A person can receive payments for parenting if they:
- Live in Australia
- Are an Australian citizen or an Australian resident
- Are a protected Special Category Visa (SCV) holder
- Meet the income and assets test
- Are the principal carer of a child
- Have a partner that is not currently getting payments for parenting
- Have qualifying children aged under 16.
The Australian government, mainly Services Australia, helps primary caretakers to receive these payments. Moreover, Australia prioritises children when it comes to family law matters. Since primary caretakers dedicate their entire time to children, they receive financial aid. Furthermore, this article will provide useful information about Australian government parenting payments.
Income and Assets Test
A parent’s gross income must fall within a specified range in order to benefit fully from a parenting payment. Additionally, the maximum number of children a parent can have and whether they live alone or with a spouse both affect the cap. Furthermore, below is a table referenced from Services Australia that sets out the income and assets test in relation to payments for parenting.
Income Test if Single
| The number of children | Income per fortnight before the parent’s payment starts to decrease |
| 1 | $202.60 |
| 2 | $227.20 |
| 3 | $251.80 |
| 4 and above | $251.80 plus $24.60 for every succeeding child |
If the parent has a partner that doesn’t get a pension payment from Services Australia, the partner may either:
- Get a non-pension payment; or
- Not get government payments from Services Australia
Moreover, below is another table that sets out how the amount of parenting payment is influenced by a parent’s and their spouse’s income.
How Income Influences Parenting Payment
| The parent’s income each fortnight | The partner’s income each fortnight | Parenting Payment Rate |
| A maximum of $150 | A maximum of $1196 | 1. $608 2. $718.60 if the parent has separated from the partner due to illness, respite care (substituting for a caregiver), or prison |
| A maximum of $150 | More than $1196 | Every dollar the partner earns over $1,196 reduces the parent’s payment by 60 cents. |
| Between $150 and $256 | A maximum of $1196 | The parent’s payment reduces by 50 cents for every dollar of income they have over $150. |
| Between $150 and $256 | More than $1196 | The parent’s payment reduces by 50 cents for every dollar of income they have over $150. This includes 60 cents for every dollar of income the partner has over $1,196. |
| A maximum of $256 | A maximum of $1196 | The parent’s payment is reduced by $53 plus 60 cents when the parent’s income exceeds $256 |
| A maximum of $256 | More than $1196 | The parent’s payment is reduced by $53 plus 60 cents when their income exceeds $256 and when their partner has over $1196. |
Parenting Payment: Assets Test
There are restrictions on the number of assets a parent may have in order to receive payment for parenting. The following table illustrates how the restrictions vary for singles and couples.
| Relationship | Homeowner | Non-homeowner |
| Single | $280,000 | $504,500 |
| A couple, combined | $419,000 | $643,500 |
| A couple: One partner eligible, combined | $419,000 | $643,500 |
Different Types of Family and Parenting Payments
Note: All of the mentioned types below are income tested but not assets tested
1. Additional Child Care Subsidy
This payment offers additional financial assistance to cover childcare costs that are higher than those covered by the Child Care Subsidy percentage. Furthermore, a person may apply for Additional Child Care Subsidy if they are:
- A grandparent, foster, or kinship carer caring for a child more than 65% of the time and are getting income support payments.
- Returning to work and the income is below a certain amount.
- Experiencing temporary financial hardship in the last 6 months
- Caring for a child who is vulnerable or at risk of harm/domestic violence, abuse, or neglect.
Furthermore, regular childcare subsidies are payments made to parents and caregivers to help with the cost of authorised childcare for kids under the age of 13.
2. Assistance for Isolated Children Scheme
This payment is for families with children under a specific age who are unable to attend a local government school on a daily basis.
Some reasons for failure to attend a local government school on a daily basis include location issues, mental or physical disabilities, and any other relevant reasons. Assistance for Isolated Children Scheme may aid in:
- Boarding Allowance
- Second Home Allowance
- Distance Education Allowance
- Pensioner Education Supplement
3. Carer Adjustment Payment
This is a one-time parenting payment for full-time caregivers of children under the age of 7 who have:
- Suffered a catastrophic event that has left them with a serious disease
- A serious medical condition
- A major impairment
The caregiver must receive Carer Allowance and no other forms of income support. Families in need of this payment are those who are struggling financially. A person may only apply for this payment after their child’s initial diagnosis.
4. Carer Allowance
This payment is for those who provide care for an aged person who needs assistance or for someone with a handicap or a serious disease. Furthermore, both the caregiver and the individual receiving care must meet the eligibility requirements.
5. Crisis Payment
This is a one-time grant for those who are in serious financial need, particularly those who are victims of family violence. Moreover, a person must apply and speak with Services Australia within 7 days of the crisis or within 14 days if the situation is connected to the COVID-19 epidemic.
6. Dad and Partner Pay
This is a two-week payment for qualified biological fathers, partners of birthing mothers, adoptive parents, and surrogate parents. Additionally, it is intended to assist these parents raising children who are newborn or recently adopted. We have published a blog about childbirth maintenance that contains information on relevant sections from the Family Law Act 1975.
7. Double Orphan Pension
Children whose parents are unable to care for them or have passed away are eligible for this payment. Furthermore, the caregiver must spend at least 35% of their time with the child.
8. Family Tax Benefit
| Family Tax Benefit A | Offered for parents and carers |
| Family Tax Benefit B | Offered for parents and carers in single-income families. |
Note: Newborn Upfront Payment and Newborn Supplement is also a type of payment for parents and carers who are eligible for Family Tax Benefit A.
9. Parental Leave Pay
Parents are eligible for the paid parental leave period if they:
- Are the primary carer of a newborn or newly adopted child
- Have met the income test and work test
- Additionally, they are not working during their paid parental leave. Exemptions may still apply.
- Have registered or applied to register their child’s birth with their state and territory birth registry.
Importance of Seeking Legal Advice
Families who are having financial problems may have a hard time sustaining themselves especially if they have children. Therefore, we at JB Solicitors are here to provide you with exceptional services. Moreover, we understand that some parents are eligible to receive a parenting payment but are unsure of what steps to take.
Our team can aid in going through procedures for getting financial aid from the Australian government without hassle. Do you have any other family law matters that need legal advice or counsel?
Contact and consult with a family lawyer today.
