The Australian government’s Parenting Payment, along with a $28.30 Pension Supplement, provides essential financial support to eligible single and partnered parents.
Starting in November 2024, single parents can receive up to $987.70 per fortnight, while partnered parents may receive up to $698.30 per fortnight. This guide explains eligibility, the application process, and budgeting tips for making the most of this support.
Understanding the Parenting Payment and Pension Supplement
The Parenting Payment is a financial aid from Centrelink to assist low-income parents with children. The payment includes a Pension Supplement of $28.30 to help cover costs of essential bills such as utilities, food, and housing. Here’s a breakdown:
| Category | Details |
|---|---|
| Single Parent Payment | $987.70 per fortnight (includes $28.30 supplement) |
| Partnered Parent Payment | Up to $698.30 per fortnight |
| Payment Day | Wednesdays (odd CRNs); Thursdays (even CRNs) |
| Adjustment Schedule | Adjusted biannually (March & September) |
Eligibility Requirements
To qualify for the Parenting Payment, parents must meet specific criteria, including age of the child, residency status, income and asset limits, and primary caregiver status.
Primary Carer Requirement
- Single Parents: Must be the primary caregiver of a child under the age of 8.
- Partnered Parents: Must be the primary caregiver of a child under the age of 6.
Residency Requirement
Applicants must be Australian residents and must be in the country when they submit the claim.
Income and Asset Limits
The government applies both income and asset tests to determine eligibility and payment amounts:
- Income Limits:
- Single Parents: Can earn up to $220.60 per fortnight before payment starts to reduce. For every dollar above this, the payment is reduced by 40 cents.
- Partnered Parents: Payments reduce when combined income exceeds $150 per fortnight. For income above this, payments decrease by 50 cents for each dollar, and by 60 cents for income over $1,345.
- Asset Limits:
- Single homeowners can have up to $314,000 in assets.
- Limits vary for partnered parents and non-homeowners.
For specific thresholds, check Services Australia’s Parenting Payment page.
Payment Schedule
Parenting Payments are issued every two weeks. Payment day is based on your Centrelink Customer Reference Number (CRN):
- Odd-numbered CRNs: Payments on Wednesdays.
- Even-numbered CRNs: Payments on Thursdays.
Step-by-Step Guide to Claiming Parenting Payment
If eligible, you can apply for the Parenting Payment by following these steps:
Step 1: Set Up a myGov Account
Create a myGov account if you don’t already have one, and link it to Centrelink.
Step 2: Verify Your Identity
Verify your identity on myGov with documents such as a passport, driver’s license, or Medicare card.
Step 3: Submit Your Claim
Log in to Centrelink through myGov, navigate to “Make a Claim,” and select “Parenting Payment.” Complete the online application form.
Step 4: Provide Additional Documentation
Centrelink may require extra documentation, such as income statements or proof of child support.
Step 5: Track Your Claim Status
Use myGov to check the progress of your claim. Centrelink will notify you if additional information is needed.
Budgeting Tips for Managing the Parenting Payment
Managing your Parenting Payment wisely can help cover essential expenses and reduce financial stress. Here are some strategies to make the most of this support:
1. Prioritize Essential Expenses
Cover primary expenses like rent, utilities, food, and transportation first. Make a list of essentials to ensure these needs are met before allocating funds elsewhere.
2. Set Up a Budget
Break down your fortnightly payment into weekly spending limits. Apps like Pocketbook and MoneyBrilliant can help you track expenses and stay within your budget.
3. Seek Discounts and Concessions
Some states offer discounts on utilities, transportation, and health services for Parenting Payment recipients. Check with your local council for concessions on electricity and water bills.
4. Build an Emergency Fund
Try setting aside a small amount each fortnight to create a safety net for unexpected expenses like medical bills or home repairs.
Real-Life Example
Case Study: Emma, a single mother receiving the Parenting Payment, uses a budget to manage essential expenses and save for her son’s extracurricular activities. By organizing her payments and accessing local concessions, she’s able to stretch her finances and plan for future needs.
Checklist: Preparing to Claim the Parenting Payment
Before submitting your claim, ensure you have all necessary documents:
- A myGov account linked to Centrelink
- Proof of identity (passport, driver’s license, or Medicare card)
- Income and asset statements (for you and your partner if applicable)
- Additional documentation as requested by Centrelink
Having these documents ready can help you avoid delays in processing your claim.
The Parenting Payment and Pension Supplement offer critical support for eligible Australian parents. By understanding eligibility criteria, budgeting wisely, and utilizing available resources, parents can effectively manage the financial demands of raising children.
